Examples Of Loyalty Programs That Work Extremely Well


A 2015 survey found that 42% of Americans will stop shopping with a brand that they are loyal to after two bad experiences.


  • Loyalty programs increase overall revenue by 5-10%.
  • Loyalty members spend 5-20% more than non-members on average.
  • Loyalty program members buy 5-20% more frequently than non-members.


Loyalty Program In Airline Industry

Ever since the coronavirus grounded flights, airlines have found themselves in a cash crunch not seen since Brett ran out of meal credits freshman year of college.


Yesterday, United Airlines made a plan to boost its cash reserves that includes snagging a $5 billion loan from there.


major banks. The carrier put up its frequent flier program as collateral, an unprecedented move no airline has tried since last Friday when American Airlines also said it would mortgage its loyalty program to secure a government loan.


Loyalty programs have been a lifeline for airlines when very few people are flying—United says its MileagePlus rewards program is worth over $20 billion and rakes in more than $5 billion in cash per year.


United is still burning through $40 million a day, but with an uptick in air travel, federal loans from the CARES Act, and projections of $17 billion in total liquidity by the end of Q3, things are looking (kind of) up for the U.S.’ second-largest airline.




Loyalty Program In Restaurant Industry

Do you know the 24-35-year-olds with high disposable cash like to eat out or order in a lot?


44% of millennials (25-34) say they are more loyal to restaurant brands than before. And 30% of millennials plan to sign up for every loyalty program.


Loyalty Points.

After ordering a few deliveries from your restaurant you can award them with loyalty points which later can be used as a discount coupon for the next order. In this way, customers will keep buying by keeping in mind the future profits.


Free Delivery.

After a certain amount of food is ordered, restaurants can give free delivery service. This is a quick and easy way to score a few brownie points with your customers.


Give Your Customers FOMO

How will anyone know what they’re missing out on by not being a member of your restaurant’s loyalty program if they don’t know about it? Tap into their FOMO (fear of missing out) by showing them exactly what they’re missing.


Promote those tasty rewards on your social media accounts, website, and to your email list to entice customers to sign up for the program. Who wouldn’t want to hit the “enroll” button when they see the image of a delicious (and potentially free) meal? You can also host special loyalty rewards members-only events at your restaurant and share the fun live on social media.


Welcome Drink Or A Free Dessert

Greet your loyal customers by name when they arrive at your reception. This should not be a challenge if you have a POS that integrates with your Loyalty data. Serve them a complimentary welcome drink as they wait for a table or give them a free dessert at the end of the meal.


Reserved Seating

Keep certain tables and sweet spots (like a table on your patio or terrace) reserved for your loyal customers. This is undeniably one of the most powerful ways of making your customers feel special. You can use this when you have spare tables.


Secret Menus

Design secret menus only for your customers with a certain number of loyalty points. This loyalty program gets a lot of attention because of its exclusivity and high word of mouth. Make it even more compelling for your regulars by changing the menu around every month. This will promote curiosity and make your loyalty program even more desirable. Shake Shack is famous for its secret menus and has customers raving.


Celebrate Your Customers' Special Days

Send them a greeting card, a discount for a birthday dinner, or a gift card for their anniversary. But as you can imagine this program is limited to a few times a year. You can use this as an addition to an always-on loyalty program like a tiered loyalty program.


Celebrate The Season

Celebrate spring, summer, or just about any topic of common interest. Add in a special menu item or dress up your space to serve a personal experience. You can be creative with this and make your loyalists feel special and give them a reason to recommend you to their friends.


Loyalty Program In E-Commerce

Amazon Prime

Amazon Prime was launched in 2004 and as of today, it has around 80 million members! The program is quite unique in the sense it might not be even correct to call it a loyalty program. At its core, Amazon Prime is a project that changes customer behavior by reducing purchase friction which in turn leads to an increase in loyalty.


Amazon deals with heavy competition from other retailers like Walmart. You can find most of the products on Amazon elsewhere, too. Prime is how they differentiate themselves and convince customers to buy products through Amazon exclusively. And it works Prime members spend an average of four times more than other Amazon customers.


Amazon's long-term objective was to create an exceptional and effortless customer experience and the Prime loyalty program paved the way for it.


  • Plan for the big run. When Amazon launched the Prime program it was bleeding money - each expedited shipping order cost the company around $8 and if a Prime member places 20 orders a year, it would cost Amazon $160; which is far higher than the $79 membership fee. But as Jeff Bezos has reiterated countless times, Amazon always plans for the long haul and he is ok with sacrificing short-term financials to get to these long-term goals. A Prime member now contributes $1,224 in purchases to Amazon each year, compared to an average of $505 for non-Prime customers. After factoring in shipping and streaming costs, the average Prime member yields Amazon $78 more in profits than other customers. And there are 80 million of them; you do the math
  • Good customer service. Amazon Prime is focused on delivering an exceptional customer experience. They gain this by providing fast, free delivery instead of gifts or rewards. This is the reason why customers think of when they want to make a purchase first.


Even though their Prime program causes them to lose money (allegedly, $1-2 billion per year), they make up for it through increased frequency of shopping transactions – namely, an average Prime member spends around $1,500 a year compared to $625 spent by the non-Prime members.