Loyalty programs are essential for customer retention and a necessary foundation for building customer loyalty in ecommerce. Whether it's a points program, a simple referral program, or a multi-tiered VIP program, a loyalty program aims to turn one-time customers into repeat customers and build a loyal following.
Based on our data at Smile.io, 35% of an ecommerce store's revenue comes from the top 5% of customers. This means that your loyal customer base is the driving force behind your business. For ecommerce businesses that implement a loyalty program, repeat purchases are 56% higher amongst customers who actively redeem rewards than those who do not.
Some of the best loyalty programs are just as recognizable as the brand. From the name of the loyalty program to how you market the program to your customers, loyalty programs are now a vital part of an ecommerce growth strategy.
We compiled a list of our top 10 customer loyalty programs of 2024. These were selected based on how brands used their loyalty programs, their innovation with certain program features, their launch (or re-launch) strategy, and how they helped customers.
Gabrielle Policella
Relaunch with Riversol Rewards
Riversol Rewards is a three-tier program that takes customers through a Bronze, Silver, and Gold tier. Customers can earn up to four points for every $1 spent and redeem their points for unique and free products, which is the best way to say “thank you” in exchange for customer loyalty.
One aspect that makes Riversol Rewards a top customer loyalty program for 2024 is its relaunch and impressive results over the years. In the last three years alone, Riversol has grown its rewards program to an average of 37% redemption rate growth year-over-year, bringing a 76% LTV lift through Riversol Rewards. This means that customers are eagerly using and engaging with its rewards program.
Riversol's rewards program members spend 11x more than non-members and have 7x higher AOV than non-reward members.
"When we first implemented Smile.io, we didn't anticipate how integrated across all our marketing plans it would become. The Riversol Rewards program has become essential for customer retention. The sales and events are some of our biggest revenue generators, and our loyal customers value the experience,” explained Ali Huynh, the marketing manager for Riversol.
Bonus Points have also become a significant part of their growth strategy with Riversol Rewards. "During our first year, we ran a bonus points event where customers could earn more points per dollar spent," Ali says. "During this event, we generated over half a million in revenue within 4 days, which was a huge success. We've since run loyalty events every quarter."
Overall, Riversol Rewards has mastered a successful rewards and loyalty program that constantly innovates and improves for its customers.
Loyalty gamification with Death Wish Coffee
The team at Death Wish Coffee created a plan to leverage its loyalty program and re-engage dormant customers in 2024. Death Wish introduced three main strategies to bring its loyalty program back to the forefront of customers' minds, including a loyalty program rebrand, personalized email flows with Klaviyo, and a gamification campaign.
Death Wish took gamification and community engagement to the next level by introducing its Swig League campaign. The baseball-inspired campaign encouraged coffee subscribers to join one of two teams based on their coffee preferences—Pitch Black or Creamators. The 9-inning campaign takes place over 9 weeks and allows customers to earn team points for successful referrals, SMS and email opt-ins, and other challenges.
Death Wish created two unique VIP tiers for each team to monitor the points' activity, track referrals, and send weekly email communications with embedded loyalty program information through its integration between Smile.io and Klaviyo.
This effort led Death Wish Coffee to soar redemption rates to 70% and led to customers having a 4.8x higher AOV for repeat customers vs. one-time shoppers.
Lust Minerals VIP program
Mineral makeup and natural skincare brand Lust Minerals is Australia's leading mineral makeup brand. Founded when founder Stacey Hollands' father was diagnosed with cancer, she saw the opportunity for affordable, high-performance products without the toxins.
Lust Minerals built a VIP loyalty program that perfectly mirrors its values. The VIP Lust Lounge isn't just about points. It's a community that rewards clean beauty commitment from its customers and provides exclusive access to products for its Lust Lounge members.
The foundation of a great VIP loyalty program begins with offering your customers the best experience. By creating different levels of your loyalty program, you can inspire and incentivize customers to unlock new rewards whenever they come back to shop with you.
Each tier unlocks carefully chosen products their community wants. For example, those in the Gold tier unlock their best-selling Pro Finish Foundation. In a year when beauty brands become more competitive for repeat customers, Lust Minerals ensures every customer in their program feels valued.
Bonus points with Sloane Tea
Specialty tea brand Sloane Tea knows the importance of customer loyalty. It combines loyalty and marketing by offering bonus points to its loyalty program members. With its Sloane Rewards loyalty program, Sloane Tea combines points, referrals, and promo campaigns to brew extraordinary results.
Through several Bonus Points Campaigns, Sloane Tea achieved a 370% increase in daily sales in just 24 hours and generated a 47% increase in rewards redemption rate year-over-year. This meant customers were actively using the rewards program and engaging with it over time.
Embedded loyalty content with Footprint USA
Leveraging Shopify Plus features, such as embedded content and extensions at checkout, can help you get customers over the finish line and checkout. You can keep your loyalty program top-of-mind with embedded storefront components like points on the product page, dedicated loyalty landing pages, and redemption at checkout.
Family-owned business Footprint USA skincare brand strategically places embedded loyalty content on product pages. Letting customers know how many points they will receive for that specific product purchase.
These key features help your brand’s loyalty program be at the top of customers' minds while they shop. They incentivize loyalty program engagement and redemption usage and retain customers for another purchase later on.
Carter’s loyalty program rebrand
If your loyalty and rewards program isn't converting customers or retaining them for a repeat purchase, it may be a sign to begin innovating again through a rebrand. Baby apparel brand Carter's rebranded its rewards program from ‘My Rewarding Moments’ to simply Carter’s Rewards.
This came from a decrease in traffic and program members. Carter’s noted back in April 2024, “Understanding the financial challenges of shopping for little ones, Carter’s is introducing new tiers, better perks, and even more benefits for members.”
Upon entering Carter's website, you immediately see a banner where customers can register for its rewards program. Carter's offers three tiers to its rewards program, starting with its Family tier. Customers can earn exclusive access to sales through its app, birthday rewards for each child, and discounts.
The next tier, VIP, is for members spending $500 a year and offers 2x points for every dollar spent, as well as early access to member deals. Customers can join its VIP+ tier by opening a credit card, which unlocks more discounts, including 2x points on all purchases, bonus points events, and free shipping on all items.
A great rewards and loyalty program is constantly innovating and trying new ways to re-engage customers to ensure the program is working for your customers.
Gabrielle Policella
Target Circle relaunch
Target relaunched its rewards and loyalty program in 2024 to extend into paid tiers with member perks. Target may be one of the few brands that can actually relaunch its rewards program into a paid component, mirroring Amazon Prime.
Target Circle is Target's rewards component, which has branched out to include a membership service that offers delivery and pickup options for Target Circle members in exchange for a fee.
Target is rebranding to include its branded credit card from the Target Red Card to the new Target Circle Card, which offers 5% off every purchase and free 2-day shipping on items. Customers can use the Target app to unlock specific bonus discounts and stack coupons.
This relaunch strategy blends paid membership components, a loyalty program that extends to cardholders, and customers who can utilize the Target app for free. Target offers multiple touch points where loyalty can be embedded so every customer feels valued.
Jonathan Roque
Double points Tuesday with Stoneglow
Candle brand Stoneglow has perfected the art of bonus points campaigns. Stoneglow has designated every Tuesday as a double points day, letting customers know that every purchase on Tuesday will earn them double the points. Stoneglow strategically launched email campaigns and a countdown notification on its site, letting customers know how much time is left. This creates a sense of urgency and allows customers to earn more while shopping.
Double points are simply when you multiply the points a customer can earn during a specific timeframe. For example, you can offer double the points on all purchases for a single weekend or day. Bonus points events can be a fantastic strategy to keep your rewards program top of mind, and eagerly boost participation in your program. But it’s important that bonus points events are launched strategically.
Smile.io now allows you to plan and manually launch your bonus points campaigns. Your bonus points campaigns can either start immediately or be scheduled for a future time (scheduled campaigns will start automatically at the right time). Campaigns can be ended anytime if you change your mind as well. This will allow the reward benefits to end immediately and automatically once the end date/time is reached for the end of your campaign.
Bonus points are only awarded on orders. So your points earned from creating an account or social follows are not multiplied.
Jonathan Roque
KITH's loyalty launch
How do you create hype for a new loyalty program? Upload points to existing customers so that every customer has a points balance from the start of your loyalty program.
Apparel brand KITH created hype when it uploaded a points balance to existing and past customers. “We have compiled everyone’s purchase history from the past twelve years, so all of your points will immediately be added to your account. Your points will place you in one of three tiers, each of which offer different benefits,” KITH noted in their Instagram post.
KITH launched its loyalty program, a three-tiered VIP program that offers members exclusive merch, early access to select products, invites to brand events, in-store returns, and birthday rewards.
KITH is a great example of launching your loyalty program strategically and offering enticing rewards that customers will love and actually use.
Ulta Beauty Rewards upgrades in 2024
Ulta Beauty may be one of the OGs when it comes to loyalty in the beauty industry. It operates throughout the U.S. and rebranded its loyalty and rewards program in 2024.
Ulta Beauty Rewards offers three tiers to customers depending on their spending amount from Member, Platinum, and Diamond. Ulta upgraded its birthday rewards to reward customers with a birthday gift from a range of products. Customers can earn rewards such as discounts towards a beauty service at Ulta, double points campaigns, and access to early product deals.
It is estimated that Ulta has 42 million active members in its rewards program, so it is a perfect example of constantly innovating your rewards and loyalty program to adapt to changing customer needs.
2024 brought a year of strategic launches, loyalty program rebrands, and ecommerce businesses innovating their rewards and loyalty programs. These 10 brands are great examples of building a loyalty program that works for customers and keeps them returning for repeat purchases.
