What is a customer loyalty programme? 

A customer loyalty programme is a rewards system brands use to encourage repeat purchases and build long-term relationships with their customers—basically, it’s a way to reward your customers for their continued support. 

Here’s how it typically works: when customers make purchases, they earn points, discounts, or other perks they can redeem later. For example, they might earn points for every pound spent, and once they reach a certain number of points, they can claim a discount on their next purchase.

“Loyalty drives superior personalisation. By understanding and rewarding customers’ preferences and behaviours, we create experiences that keep them coming back, time and time again.”

Rhian Wadsworth, Partner Marketing Manager at LoyaltyLion

Loyalty programmes are win-win for everyone. You get to strengthen your customer retention rates (hello more consistent sales) and shoppers get to enjoy discounts, freebies, or insider access.

Spend less, earn more: why loyalty = ROI 

You’ve probably heard the old adage, “It’s easier to keep a customer than to get a new one.” The reason it’s such a prolific (and frankly overused) statement in ecommerce is because it’s true. Acquiring new customers can be five times more expensive than retaining existing ones. 

It makes sense when you think about it. Loyal customers already trust you, so they’re more likely to make repeat purchases—and, ergo, give your revenue a nice little bump without you needing to splash the cash on reaching new audiences. 

Loyal customers are also more likely to become brand advocates. They’ll shout about your products to friends, family, and followers, bringing in new customers through word-of-mouth (which, FYI, is still one of the most effective marketing strategies). 

From a return on investment (ROI) standpoint, customer loyalty programmes are worth it. A recent study found that brands see an average ROI of 4.8x. Plus, loyal customers are 50% more likely to try new products and spend 31% more than new customers. 

Develop a loyalty programme in 6 steps 

There are obviously many different ways you can set up and run a loyalty programme—e.g. if you sell monthly subscriptions for makeup products, your programme will probably look very different to a brand that sells high-ticket furniture. 

But there are some key steps that go into any thoughtful loyalty programme. 

Step 1: What do you want to get out of it? 

Think about what you’d like your loyalty programme to achieve. Do you want to increase repeat purchases? Encourage referrals? Boost engagement with your brand? Your end goal will determine what you offer and how you promote your programme. 

Step 2: Who are you rewarding? 

The most successful loyalty programmes are heavily customer-focused. Think about what kind of rewards will actually excite your customers (will they go crazy for a free stuffed toy or would they prefer steep discounts?). Understanding what motivates your customers is kind of important if you want to design a programme they’ll actually participate in. 

Step 3: What reward structure will you use? 

There are plenty of ways you can structure a loyalty programme, including points-based, tiered, or even VIP memberships.

• A points system is simple: customers earn points with each purchase and can redeem those points for rewards.
• Tiered systems offer increasing benefits the more a customer engages with your brand (tiered systems have an 80% higher ROI than programmes without tiered systems). 
• VIP memberships can reward your most loyal customers with hefty discounts. 

Step 4: How will customers get involved? 

Simplicity is key here. If your loyalty programme is too difficult to use, customers will quickly lose interest. So, whether you decide to use an app, website, or some other system, it should be intuitive, quick, and hassle-free. 

Tip: Create clear step-by-step instructions that help customers at every touchpoint, from their first purchase to redeeming their rewards. 

Step 5: How will you promote your programme? 

Don’t forget to spread the word. Launch your loyalty programme to your email list, social channels, and any other platforms where your customers interact with you on the regular. Continue to remind customers about your programme too—especially new shoppers. Let them know they can redeem rewards in post-purchase emails, order confirmations, and even on your product pages. 

Step 6: How will you measure your success? 

Once your loyalty programme is up and running, consider how you’ll track its results. Are customers engaging with it? Is it helping you meet your goals? Be ready to tweak it based on customer feedback or changing market demands—a great loyalty programme should evolve over time to keep things fresh and exciting. 

7 best practices for building irresistible loyalty programmes

In his newsletter, All Things CX and Retention, Eli Weiss says brands should look to create “superfans” with their loyalty programmes. And, while this is absolutely true (superfans are super good for business), just creating some semblance of loyalty is sometimes enough. 

Regardless, here are some best practices to make your loyalty programmes the best they can be (and, as a result, turn one-time customers into much-coveted superfans).

1. Spot early signs of enthusiasm

It’s easier to get customers who already love your brand to sign up for a loyalty programme than it is on-the-fence customers. According to Weiss, one of the first signs of a “superfan” is their immediate positive feedback. 

Keep an eye on customers who leave glowing reviews, give you a high Net Promoter Score (NPS), and leave enthusiastic feedback via email or socials. These customers have already had a great experience with your brand and are well-primed for a loyalty programme. 

Tip: use Klaviyo’s CDP to identify your best customers and create exceptional, unique journeys just for them (that ultimately lead to your loyalty programme). 

2. Encourage customers to share your programme

Once you’ve identified your most enthusiastic customers, give them an easy way to share their love for your brand—and reward them for doing so. 

You can offer a discount or a freebie for referring a friend and sweeten the deal by rewarding their friend too. This creates a self-motivated referral machine that should snowball over time. 

3. Keep loyal customers engaged with educational content 

Superfans love to feel connected to the brands they buy from, so keep the conversation going beyond just purchases—a.k.a. show them you don’t just want their money. Instead, share valuable content about their interests, like expert tips, behind-the-scenes videos, or regular updates about your latest lines and features. 

4. Focus on cultivating a community 

Loyal customer, meet loyal customer. Now kiss (or, actually, hang out together and share your love for our brand). One of the most effective (and fun) ways to turn customers into superfans is by building a community around shared interests and goals. 

You can create an online group, forum, or social media community where customers can connect and strengthen their emotional connection to your brand. 

Remember how Peloton pretty much became a cult in the pandemic? That was in part because of its community-driven practices. Customers want to feel a sense of belonging. In fact, 62% of consumers are a part of a brand community or “fandom”, while 23% report a “complete obsession” with their brand or product of choice. 

5. Reward loyalty with exclusivity 

“Do you want to be exclusive with me?” ← this phrase works in many different contexts, including ecommerce. People love to feel like they’re part of an “inner circle”, so offer your loyal fans exclusive perks, like early access to products, VIP experiences, or invites to special events. 

6. Personalise your loyalty programme 

A simple “thank you” goes a long way because people like to be recognised for their loyalty and actions. Offer customers in your loyalty programme personalised discounts on their favourite products, a birthday shout-out, or even just a personalised “thank you for shopping with us, [name], we appreciate you!” message. 

7. Create feedback loops 

Let loyal customers have a say—they are, after all, the bread and butter of your business. Create opportunities for them to share feedback on new products before they’re released to the general public. You can do this through surveys, beta tests, or special focus groups—there’s nothing quite like saying we appreciate you than giving customers a hand in shaping your brand.

3 key tools for helping you develop a loyalty programmme

Time to get your toolkit together. Let’s assemble a tech stack of dreams for loyalty programmes. 

1. LoyaltyLion

LoyaltyLion is the OG of loyalty programme tools. It was designed to manage reward systems and makes setting up points-based rewards, referral programmes, and tiered VIP memberships easy. Its features include personalised rewards for different customer segments and seamless integration with major ecommerce platforms. 

Integrate LoyaltyLion seamlessly with Klaviyo

2. Yotpo

You can set up all kinds of fun ways for customers to earn points with Yotpo’s Loyalty and Referrals platform. You’re not limited to rewarding customers for making purchases—you can award points for writing reviews or following you on social media and apply different types of rewards, including discounts and free shipping. 

Yotpo is very flexible. You can create tiered programmes, run time-limited campaigns, and target specific customer groups with personalised offers. 

3. Klaviyo 

Klaviyo’s ability to segment customers based on highly granular data makes it ideal for running customer-focused loyalty programmes. It integrates with loyalty programmes so you can send reminders about rewards, offers for milestones, and tailor product recommendations based on a customer’s loyalty level. 

Here are some ways it can elevate your loyalty programme: 

• Tailored messages. Klaviyo can segment your audience based on their purchase history, activity level, and engagement with the brand. This means you can send personalised emails or SMS messages that recognise customers’ loyalty milestones, remind them of points they’ve earned, or suggest rewards they can redeem based on their shopping habits. 

Put it into action: If a customer is close to earning enough points for a reward, you can automatically send them a message saying, “You’re just 10 points away from a free product—come back and shop now!”. 

• Automated reward reminders. Schedule automated emails that remind customers how many points they have, when their points are expiring, or when they’ve reached a new tier in your loyalty programme. 

Put it into action: Trigger emails that say “Congrats! You’ve just hit Gold status—enjoy 10% off your next purchase as a thank-you!” or “Don’t let your points expire! Redeem them by the end of the month for a special reward.” 

• Targeted promotions for loyal customers. Identify and target high-spending or frequently engaged customers with special offers, like early access to new products, members-only discounts, or birthday perks.

Put it into action: Send an email to your top tier of loyal customers offering them “early access to our Christmas sale” or a “sneak peek of our new collection, just for our VIP members.” 

• Post-purchase follow-ups. Keep the conversation going after a shopper’s made a purchase with follow-up emails that thank them and encourage them to engage further with your loyalty programme. 

Put it into action: Send messages highlighting how many points they’ve earned from their purchase or offer a special bonus for their next purchase if they shop within a certain time frame. E.g. A post-purchase email might say, “Thanks for shopping with us! You’ve earned 50 points towards your next reward. Keep earning and unlock exclusive discounts.” 

15 real-life, real good customer loyalty campaign examples

Loyalty programmes come in all shapes and sizes—as you’ll see here in our collection of really good, real-life examples. 

1. Le Pantalon

LePantalon, a French sustainable fashion brand, created LePantalon Club (or Le Club, for short). The programme converts customer spending into points, offering tiered rewards (Cool, Lover, Addict, and VIP) without breaking the bank on extra tech. 

As customers shop more at LePantalon, they unlock exciting benefits like free socks, trouser alterations, 15% off their next purchase, and free delivery. Plus, if they share their birthday, they get an extra discount to use on their special day.

After placing an order, customers receive a post-purchase email that explains the loyalty programme and encourages them to return to earn more points. The brand also includes loyalty status updates in newsletters and campaign emails as friendly reminders. This approach is particularly effective for customers who abandon their shopping carts; personalised reminders help boost conversion rates to 7.5%—double the industry average. 

2. Buffetti

Buffetti, an Italian office supplies retailer, teamed up with Klaviyo and Adobe Commerce to give its loyalty programme a new lease of life. 

The brand has created a slick multichannel experience that connects its online and offline stores, making it super easy for customers to rack up points and snag rewards no matter where they shop. The coolest part is they’ve set up automated flows that keep customers in the loop about their points balance and available perks, which has ramped up engagement.

The results are impressive. Buffetti’s seeing a huge 98% increase in revenue from its loyalty programme emails compared to regular campaign emails. Plus, their welcome series is knocking it out of the park with open rates of 70-80% and click rates of 20-30%.

3. The Cambridge Satchel Co

The Cambridge Satchel Company, a luxury British brand known for its stylish leather bags, has taken its customer loyalty game to a whole new level. The brand has launched a loyalty programme that turns enthusiastic customers into full-blown brand ambassadors. These superfans don’t just earn points for buying stuff—they can rack them up by following the brand on social media, referring friends, or even creating user-generated content. 

For those die-hard fans who can’t get enough of the brand’s satchels, there’s a VIP club with some seriously sweet perks, like early access to sales, and special birthday treats. The brand uses Klaviyo’s smart segmentation to identify these VIPs and send them personalised goodies. For example, during Black Friday, VIPs get an exclusive sneak peek at the sale before everyone else. 

4. The Couture Club

Trendy fashion brand, The Couture Club, partnered with LoyaltyLion to create a programme that’s not just about points, but about making their customers feel like VIPs. During Black Friday, the brand’s loyal customers placed an average of 2.1 orders each—60% higher than the industry average. 

But here’s the interesting part. The Couture Club doesn’t just sit back and let the loyalty programme run itself. The brand gets creative with it, especially during big sales events. For Black Friday, they locked their website and only gave early access to loyalty members. This clever move not only made their loyal customers feel special but also got more people interested in joining the programme. Plus, it created a sense of urgency that had people rushing to shop. It resulted in a massive 325% increase in email revenue during Black Friday and Cyber Monday.

5. Bloom and Wild

When you join Bloom and Wild’s loyalty programme, you earn points for every purchase, which can be redeemed for discounts on future orders. Plus, you get bonus points for referring friends and celebrating your birthday.

The programme also offers exclusive perks like early access to sales and special promotions just for members. It’s easy to track your points through their website, so customers always know how close they are to their next reward. 

6. Sephora

Sephora’s UK loyalty programme, MySephora, rewards customers for their love of beauty products. Every time you earn 100 points, you can choose from a variety of exciting rewards, including beauty gifts, discounts, or even donate to a charity. 

The programme has three tiers—Bronze, Silver, and Gold—each offering unique perks that enhance the shopping experience. As well as the points and rewards, MySephora keeps things engaging with exclusive offers and treats tailored to members. 

7. H&M 

H&M’s membership programme is designed to create a delightful, personalised shopping experience while rewarding customers for their loyalty. When you join, you gain access to exclusive member benefits, including personalised offers, early access to sales, and special promotions. Members also earn points on every purchase, which can be redeemed for discounts on future orders.

8. Adanola

Anyone who creates an Adanola account automatically becomes a member of the Adanola Rewards club—no need to opt in. Members earn points not only for purchases but also for writing reviews, subscribing to the newsletter, and referring friends. Plus, their tiered system rewards the most loyal customers with exclusive offers, free shipping, and other perks.

Sustainability is a core value for Adanola, reflected in its small production lines and fully recyclable packaging. Their loyalty programme aligns with these values by rewarding customers who reach Tier 3 status with a tree planted in their honour. 

See for yourself how Klaviyo can secure customer loyalty and create superfans. Book a demo. 

9. Paul James Knitwear

Through Paul James Knitwear’s loyalty programme, customers can earn points to get money off. When they get 100 points, they get 10% off. When they spend 250 points, they get 15% off, and so on. 

But the interesting thing about this particular loyalty programme is how the brand has integrated it with SMS and reviews. Customers can get points for writing reviews, adding photos to their reviews, and signing up to receive text messages. The brand also uses its loyalty programme to run seasonal campaigns without the hassle of managing discount codes. 

10. Kiehl’s

With Kiehl’s loyalty programme, customers can collect points for every pound spent, as well as when they refer friends, book consultations with Kiehl’s experts, and recycle empty product containers. 

For example, you get 1 point for every £1 spent, 50 points for each friend you refer after their first purchase, and 15 points for recycling Kiehl’s products.

As you accumulate points, you unlock various rewards and benefits at different tiers. Once you hit 120 points, you can convert those into a £10 voucher, with a maximum of 10 vouchers available each year. Members also receive a special birthday gift, early access to new launches, and free standard delivery on all orders. The programme has three tiers—Extra, Super, and Everest—each offering increasing rewards like larger money-off vouchers and exclusive event access. 

11. The North Face

The North Face Loyalty Programme is designed to reward outdoor enthusiasts for their passion for adventure. When you join, you start earning points for every purchase, which can be redeemed for discounts on future orders. Plus, members get exclusive access to special promotions, early product launches, and personalised offers tailored to their interests.

The programme has a tiered structure, allowing members to unlock even more benefits as they accumulate points. For example, reaching higher tiers means gaining access to exclusive events and experiences. Members also receive a birthday gift and can get involved in sustainability initiatives, like earning points for recycling old gear. 

12. Huel 

Huel’s loyalty scheme rewards its most dedicated fans, a.k.a. “Hueligans,”. Once you hit 1,000 meals with Huel, you’ll receive a special gift box as a thank-you, which includes an exclusive shaker and a black logo t-shirt. If you keep going and reach 3,000 meals, you’ll get another exclusive shaker and t-shirt, this time from the 3k club.

But it doesn’t stop there. When you hit the impressive milestone of 5,000 meals, Huel will send you a unique package directly to your door, no purchase necessary. Each milestone comes with a congratulatory email that allows you to share your t-shirt size and other details for future orders. Plus, if you refer friends to join the Huel community, you can earn more rewards. 

13. Lululemon

Shoppers who sign up for Lululemon’s membership programme get early access to product drops, making sure they’re the first to snag the latest gear. As well as earning points to exchange for cash off, members can also enjoy receipt-free returns and access select classes and exclusive membership events within the Lululemon app. 

And, if you need your clothes tweaking just a smidge, members get free hemming on their purchases. 

14. Farfetch

You automatically become a member when you create an account with Farfetch, and your spending determines which tier you fall into—ranging from Bronze to Platinum, with a special Private Client level for the most dedicated customers. Your loyalty year resets every 12 months, but you can upgrade your tier anytime to enjoy even more benefits.

Members can look forward to exclusive discounts, access to private sales, free delivery, and the option to work with a dedicated personal stylist. 

15. Lucy & Yak 

Lucy & Yak’s rewards programme lets you earn points for every purchase, which can then be saved up to unlock discounts—up to £50 off your next order. The programme also encourages engagement, so you can earn points by referring friends or following Lucy & Yak on social media. 

There are three tiers of loyalty: Comfort Lover, Yak Enthusiast, and Top Yakker. The higher up the tiers you are, the more points you can get each time you spend. For example, Comfort Lovers get two points for every pound spent, while Top Yakkers get five points. 

Building loyalty that lasts, one superfan at a time

Yes, of course it would be nice if our customers were just loyal without us having to do anything. But that’s rarely the case. And, whether you’re small, big, new, or seasoned, fostering customer loyalty means more than just churning out sales—it’s about creating lasting relationships that keep people coming back. 

With a thoughtful loyalty programme and the right tools, you can easily improve retention rates and turn shoppers into those all-important superfans.