What Companies Have Loyalty Programs

Introduction

Loyalty programs are everywhere: roughly seven in ten consumers say they prefer brands that offer rewards. For merchants contending with rising acquisition costs and "platform fatigue," a well-designed loyalty program is one of the fastest ways to increase repeat purchases and customer lifetime value.

Short answer: Many companies across retail, foodservice, travel, finance, entertainment, and beyond operate loyalty programs. The most successful programs focus on clear value, ease of use, and cross-channel integration. They look different depending on customer needs — from points-and-tiers systems at premium retailers to subscription memberships at marketplaces and value-based offerings for purpose-driven brands.

In this post we’ll explain which companies run loyalty programs, why they do it, and how the best programs are structured. We’ll break down program types, industry patterns, metrics to track, common mistakes to avoid, and practical steps to design or improve a program for your store. Along the way, we’ll show how Growave’s retention suite — built to replace multiple separate tools — helps teams launch loyalty programs faster and keep them profitable, with Less Stack and More Growth.

Why Companies Offer Loyalty Programs

Companies invest in loyalty programs because they turn retention into predictable growth. Running a rewards program is not simply about discounts — it’s a business model that increases customer lifetime value (LTV), reduces churn, and lowers the long-term cost of growth.

Business outcomes companies chase

• Greater repeat purchase frequency and higher average order value.
• Higher customer lifetime value and more predictable revenue.
• Richer customer data for personalization and smarter campaigns.
• More efficient marketing spend because retention costs less than acquisition.
• Organic growth through referrals and user-generated content.

Why some companies prioritize loyalty more than others

Different business models demand different strategies. High-frequency, low-ticket brands (coffee, convenience retail) focus on points and quick gratification. Premium or experience-driven brands prioritize tiered access and VIP experiences. Marketplaces and ecosystems often offer subscription-style loyalty to lock in habitual spending across services.

Who Uses Loyalty Programs: Companies By Industry

Loyalty programs are not limited to a single vertical. Here’s how leading categories use rewards and what those programs typically look like.

Retail and D2C

Retailers and direct-to-consumer brands use loyalty to increase purchase frequency, encourage larger baskets, and gather customer behavior signals. Programs vary from points earned per dollar to tiered VIP access for top spenders.

• Grocery and mass retail: rewards for everyday spending, often combined with personalized coupons.
• Fashion and beauty: points plus tiers, early access, and exclusive experiences to drive higher-value purchases.
• Home and furniture: perks like price protection, member-only workshops, and extended warranties.

Many e-commerce merchants mirror these patterns with digital loyalty features that reward both purchases and engagement.

Food & Beverage

Restaurants and coffee chains rely on habitual visits. Points-per-purchase, fast rewards, and mobile ordering integration make these programs sticky and measurable.

• Quick-service chains favor simple earn-and-redeem mechanics and weekly deals.
• Cafés focus on app-based tracking and fast gratification (a free beverage after a few visits).

Travel & Hospitality

Airlines and hotels use tiered programs to lock in high-value customers. These programs reward not just transactions but also loyalty behaviors like partner bookings and card spend.

• Tiers are central — status unlocks upgrades, priority service, and lounge access.
• Partnerships expand earning opportunities beyond core purchases.

Marketplaces & Subscription Services

Large marketplaces and subscription models use a paid or membership-style loyalty product to deepen engagement across many services, often providing a suite of benefits to justify the recurring fee.

Financial Services and Retail Credit

Banks and credit programs incentivize spending via points or cash back, often built on co-branded credit cards that deliver rewards across partner ecosystems.

Entertainment, Gaming & Media

Programs here reward playtime, referrals, and content sharing. Points convert into exclusive content, early access, or ad-free experiences.

Large Ecosystems and Country-Scale Programs

Some companies and conglomerates construct ecosystem-wide reward programs that span shopping, travel, media, and services, creating network effects where points are valuable in multiple contexts.

Types Of Loyalty Programs Companies Use

Companies pick program models based on purchase frequency, margin profile, and customer psychology. These are the most common types and why companies choose each.

Points-based programs

Description: Customers earn points for purchases and actions, redeemable for discounts or products.

Why companies use it: Flexible and familiar; works for many business models and encourages incremental spend.

Best for: Retailers, cafés, mid-frequency D2C brands.

Tiered programs

Description: Members move up tiers based on spend or engagement to unlock better benefits.

Why companies use it: Drives aspirational behavior and higher spend from the most valuable customers.

Best for: Luxury, high-ticket retail, travel, hospitality.

Subscription or paid memberships

Description: Customers pay to join and receive continuous perks (free shipping, exclusive deals).

Why companies use it: Generates recurring revenue, deepens commitment, increases purchase frequency.

Best for: Marketplaces, large retailers, brands with frequent repeat purchases.

Value-based programs

Description: Rewards tied to advocacy, sustainability, or shared values (e.g., donations or planting trees).

Why companies use it: Builds emotional connection and attracts purpose-driven customers.

Best for: Purpose-led brands and companies targeting values-driven consumers.

Cash-back and rebate programs

Description: Direct return of value (cash-back) or store credit after purchases.

Why companies use it: Simple to understand and highly motivating for price-sensitive shoppers.

Best for: Grocers, mass-market retailers, financial products.

Referral and advocacy programs

Description: Reward existing customers for referring new ones; often combined with points.

Why companies use it: Drives low-cost acquisition and leverages trust between buyers.

Best for: D2C, subscription, and services.

Omnichannel and experiential programs

Description: Connects digital and in-store experiences and adds real-world perks like events or workshops.

Why companies use it: Keeps the customer relationship consistent across touchpoints.

Best for: Large retailers and brands with a strong in-person presence.

What Companies Have Loyalty Programs: Common Patterns That Work

Across industries, high-performing loyalty programs share these traits.

• Clear, meaningful rewards: Customers must feel the value quickly.
• Low friction: Easy enrollment, easy to earn and redeem.
• Fast gratification: Small rewards early keep members engaged.
• Personalization: Relevant offers based on behavior and lifecycle stage.
• Integration across channels: Sign-up, earning, and redemption work in-store and online.
• Emotional value: Community, exclusivity, or shared values can matter as much as discounts.
• Measurement and iteration: Top programs test offers and evolve based on data.

These are the design principles behind well-known programs across retail, food, travel, and entertainment.

Designing a Loyalty Program That Fits Your Brand

Building a program that matches your audience is where strategy meets execution. Below we outline a practical design process and how to translate strategy into action without adding 5–7 separate platforms to your tech stack.

Define clear goals

Decide what the program must move — retention rate, repeat purchase frequency, average order value, new-customer referrals, or a combination. Clear objectives make it easier to choose the right rewards and KPIs.

Possible KPIs to track

• Retention rate and repeat purchase rate
• Customer lifetime value (LTV)
• Average order value (AOV)
• Redemption rate and breakage
• Referral conversion rate
• Program adoption rate

Know your customer segments

Map customers by recency, frequency, and monetary value (RFM). Determine who needs frictionless rewards, who values exclusivity, and who responds to purpose-driven incentives.

• High-frequency, low-AOV customers want quick wins.
• High-value customers value tiers, VIP access, or concierge perks.
• New customers need easy wins to convert into repeat buyers.

Pick a program model that aligns with goals

Match program architecture to your KPIs and margin profile:

• Points-based to lift basket value across the customer base.
• Tiers to cultivate and reward high spenders.
• Paid membership to capture recurring revenue and justify premium benefits.
• Value-based for brands that win on purpose and differentiation.

Choose rewards customers actually want

Rewards should feel attainable and valuable. Examples include:

• Discounts or percent off future purchases
• Free products or samples
• Exclusive access (early drops, limited runs, events)
• Free shipping credits or extended returns
• Personal services (stylist, concierge) for luxury tiers
• Charitable contributions or sustainable incentives

Design earning rules and redemption pathways

• Keep earn rules simple (points per dollar is classic).
• Offer non-transactional ways to earn points (referrals, reviews, social shares, wishlists).
• Ensure redemption paths are clear at checkout, account pages, and via customer communications.

Growave’s Loyalty & Rewards tools let merchants create points structures, tier thresholds, and non-transactional earning actions without stitching together multiple systems. Learn how to build a points-and-tiers program that tracks both purchases and engagement by visiting the page on building a points-and-tiers program with Growave’s retention suite (build a points-and-tiers program).

Integrate social proof and reviews

A loyalty program performs better when rewards are reinforced by proof that products are loved. Invite members to leave reviews, reward UGC, and surface the best reviews at checkout to improve conversion. You can see how to showcase customer reviews and UGC within the same retention suite to build trust and drive more conversions (showcase customer reviews and UGC).

Launch Strategy: Bring Members In Without Confusion

The initial launch decides the program’s first impressions. A smooth launch balances promotion with clarity.

Pre-launch setup

• Define the program rules and prepare FAQs.
• Update site navigation, product pages, and checkout to make enrollment visible.
• Prepare email and on-site messaging to announce launch.

Promotion channels that work

• Homepage banners and checkout prompts for high visibility.
• Email and SMS campaigns sequentially nurturing sign-ups and first redemptions.
• Social and on-pack messaging to reward discovery purchases.

Make enrolling frictionless at checkout and account creation. If you run on Shopify, merchants frequently install and configure Growave from the Shopify marketplace for quick setup and built-in checkout integrations — you can install Growave from the Shopify marketplace and see how fast a program can go live (install Growave from the Shopify marketplace).

Early-week incentives

Offer a first-purchase bonus or welcome points to seed engagement. Small, immediate rewards reduce abandonment and encourage first redemptions.

Keeping Members Engaged Over Time

Retention programs must evolve. Stagnation kills engagement.

Personalize offers by lifecycle stage

• New members: quick win offers and onboarding tips.
• Lapsed customers: reactivation offers and tailored incentives.
• VIPs: exclusive events and one-to-one experiences.

Data matters. Use purchase history to tailor the next best offer and use cross-channel triggers to deliver it where customers are most likely to act.

Freshness and exclusivity

Rotate limited-time offers, member-only products, and experiential perks. These keep the program feeling alive and reward members who check back regularly.

Use UGC and reviews to build social proof

Encourage members to leave reviews in exchange for points. Use those reviews to showcase top-rated products in emails and on landing pages. That combination of social proof and rewards turns members into advocates and increases conversion on future visits. Growave’s Reviews & UGC tools make it straightforward to collect and display social proof while rewarding contributors (showcase customer reviews and UGC).

Measurement: KPIs, Benchmarks, and Analysis

Track program health across adoption, activity, and financial impact.

Key metrics to watch

• Program adoption rate (members / buyers).
• Active member rate (members who earned/redeemed in X period).
• Lifetime value difference between members and non-members.
• Redemption rate and breakage (unredeemed point value).
• Referral-driven new customers and cost per acquisition from referrals.

Analyze cohort behavior to understand if the program lifts repeat purchase rate and AOV. Reporting dashboards should let you compare member cohorts against baseline customers to calculate incremental revenue driven by rewards.

Common Pitfalls Companies Run Into

When companies launch poorly thought-out loyalty programs, they often make the same mistakes. Avoid them.

• Overly complex rules and hard-to-redeem rewards.
• Rewards that eat margin without improving retention.
• Neglecting omnichannel consistency — members expect to earn and redeem both online and in-store.
• Ignoring VIPs — not recognizing most valuable customers drives churn.
• Lack of measurement — not attributing uplift to the program.
• Running the program across 5–7 different platforms, creating operational friction and data siloes.

Our "More Growth, Less Stack" philosophy focuses on solving the last issue. Rather than using multiple disconnected services, a single retention suite reduces friction for both merchants and customers — from loyalty to reviews to referrals and UGC.

How Growave Helps Merchants Build Better Loyalty Programs

We build for merchants, not investors. Our platform is designed to replace several standalone tools so teams can move faster and focus on growth.

One platform for loyalty, reviews, referrals, and UGC

Growave combines five core pillars — Loyalty & Rewards, Reviews & UGC, Wishlists, Referrals, and Shoppable Instagram & UGC — so merchants don’t stitch together multiple services. That means fewer integration points, cleaner data, and faster iteration. If you want to compare plan capabilities or see which plan fits your growth stage, view plan details and compare plans on our pricing page (view plan details).

Loyalty & Rewards made practical

Create points, tiers, and non-transactional earning actions from one interface. Whether you want to reward purchases, social shares, reviews, or wishlisting, Growave supports those earning rules and lets you control redemption thresholds and benefits. Learn more about how to build a robust loyalty program with configurable rules and tiers (build a points-and-tiers program).

Reviews & UGC for higher conversion

Collect product reviews, star ratings, and photo or video UGC. Reward contributions with points to encourage more authentic content. Display reviews across product pages and in emails to increase buyer confidence and conversion with social proof (showcase customer reviews and UGC).

Referral programs that scale customer acquisition

Turn satisfied customers into acquisition channels by assigning points or credits for successful referrals. Because the rewards engine and referrals run on the same platform, you can measure referral LTV in the same dashboard that tracks loyalty ROI.

Wishlists and conversion signals

Use wishlists to capture intent, then trigger personalized campaigns when wishlist products go on sale or return to stock. It’s a low-friction way to drive reactivation and higher conversion.

Social commerce and shoppable UGC

Leverage user photos and shoppable Instagram feeds to create discovery pathways for shoppers. Reward contributors with points for UGC and use those assets across paid and organic channels.

Faster time-to-value, less tech overhead

Merchants tell us they value simplicity. Instead of managing multiple vendors for loyalty, reviews, referrals, and UGC, Growave centralizes those capabilities. You can install Growave from the Shopify marketplace to get started quickly and connect loyalty to checkout and customer accounts without long engineering cycles (install Growave from the Shopify marketplace).

If you want to see how a cohesive retention ecosystem performs for larger merchants, we also support enterprise and Shopify Plus merchants with additional customization and support (explore enterprise solutions for high-growth merchants).

Roadmap: Launch Plan For Your Loyalty Program (Practical Steps)

Below is a practical sequence of work merchants use to plan and launch a scalable rewards program. Use these as a checklist in your planning process.

• Define business goals and KPIs for the program.
• Map customer segments and journeys to decide the reward model.
• Choose the reward types and earning rules that align with margins.
• Prepare creative assets, on-site placements, and email flows.
• Configure loyalty mechanics, tiers, and referral rewards in the platform.
• Integrate review collection and point incentives for UGC.
• Test the customer experience end-to-end across devices and checkout.
• Launch with a visible promotion and a welcome reward for new members.
• Monitor KPIs, adjust earning and redemption rules, and iterate based on cohort behavior.

Because Growave centralizes loyalty, reviews, referrals, and UGC, merchants can complete many of these steps without sewing together separate point systems and review collectors. For a closer look at plan options and what you get at each level, view plan details and compare plans on our pricing page (view plan details).

Creative Loyalty Campaign Ideas That Work Across Industries

• Welcome journeys that award points on first purchase and nudge members to redeem small rewards.
• Birthday surprises that drive emotional engagement and a timely purchase.
• Double-points days to stimulate off-peak demand.
• Social-share challenges rewarding members for tagged UGC and reviews.
• VIP-only product drops and previews to activate high-value segments.
• Referral streak bonuses for customers who bring multiple new buyers in a set time window.
• Sustainability-based campaigns where points translate to donations or tree plantings.

When you combine these mechanics with visible social proof from real customers, the result is a program that incentivizes both purchases and advocacy. Growave’s Reviews & UGC features let you reward reviewers and use that content to lift conversion while your loyalty engine recognizes the contribution.

How To Measure ROI From A Loyalty Program

Track both behavior and financials. A straightforward way to quantify impact is to compare cohort LTV before and after program enrollment.

• Calculate average revenue per member over a defined period.
• Compare repeat purchase frequency and AOV between members and non-members.
• Attribute incremental revenue to loyalty-driven behaviors (redemptions, referral acquisitions).
• Include operational savings from reuse and cross-sell enabled by members.

Measure program payback: how long does it take for the incremental margin from members to cover the cost of their rewards? If payback improves as the program matures, you’re on the right track.

Realistic Expectations: What Success Looks Like

Not every program immediately doubles revenue. Expect incremental gains early on and compounding value as adoption increases. Success is visible in:

• Improved retention and higher repeat purchase rates.
• A measurable gap in LTV between members and non-members.
• Strong referral conversion and lower acquisition costs for referred customers.
• Higher conversion on product pages that feature real customer reviews.

Merchants using an integrated retention suite tend to achieve faster iteration cycles because data flows cleanly between loyalty, reviews, and referral features.

Common Questions Merchants Ask (Operational Answers)

• How should we decide between points and paid membership?
  • Match the program to customer behavior and margins. If customers shop frequently and the brand has low marginal cost per transaction, points can drive volume. If customers would accept a fee for improved convenience and perks, a paid membership creates predictable revenue.
• How often should we change rewards?
  • Keep the core structure stable and refresh seasonal rewards quarterly. Fast changes can confuse members; timed, meaningful updates keep interest high.
• What’s a healthy redemption rate?
  • That depends on program design. Moderate redemption encourages engagement; very high redemption may indicate over-generous rewards, while very low redemption implies poor perceived value or friction.
• How to avoid cannibalization of full-price sales?
  • Structure rewards to encourage incremental spend (e.g., threshold rewards, early access to premium products) rather than blanket discounts on all purchases.

Implementation Examples (High-Level, Non-Fictional)

• A D2C beauty brand improves repeat purchases by offering points for purchases plus bonus points for reviews and photo uploads. Rewards include sample-sized products and early access to drops.
• A coffee chain increases app visits by awarding a free beverage after a small number of visits, and uses push notifications on double-points days to stimulate off-peak traffic.
• A furniture retailer introduces a tiered program offering free delivery and extended returns to top-tier members, which shifts higher-value customers into longer care cycles and reduces churn.

These patterns are common across many successful programs and can be executed more efficiently when loyalty, reviews, referrals, and shoppable social content are managed in a single retention ecosystem.

More Growth, Less Stack: Operational Benefits

Moving off multiple point tools and consolidating into one retention suite reduces overhead:

• One dashboard for member data and rewards.
• Unified customer view for personalization across loyalty and reviews.
• Fewer integration bugs and faster launch timelines.
• Lower total cost of ownership and simpler vendor management.

Merchants consistently appreciate being able to configure loyalty rules and review incentives from the same place. If you’d like to see how consolidated workflows accelerate time-to-value, you can install Growave from the Shopify marketplace to trial the platform and view configuration options (install Growave from the Shopify marketplace).

We’re trusted by 15,000+ brands and maintain a 4.8-star rating on Shopify — proof that merchants value a merchant-first platform that reduces tech overhead and delivers measurable retention results.

Troubleshooting Guide: If Your Program Isn’t Working

• Low sign-ups: Simplify membership entry points and add a visible welcome reward at checkout.
• Low redemptions: Lower redemption thresholds or add more compelling smaller rewards early.
• High churn: Reassess reward value or introduce tiered perks to reward loyalty beyond discounts.
• Confused customers: Publish clear FAQs, show points balance clearly in accounts, and send helpful onboarding emails.

Each of these fixes is easier when your loyalty and review systems share data, so you can A/B test offers and measure behavior quickly.

Conclusion

Loyalty programs are no longer optional for brands that want sustainable growth. Companies across retail, foodservice, travel, finance, and entertainment run loyalty programs because they reliably increase retention, AOV, and LTV when designed and measured properly. The best programs combine meaningful rewards, simplicity, personalization, and integration across channels. Merchants who replace fragmented solutions with a unified retention suite remove friction, speed up iteration, and get better results — More Growth, Less Stack.

Start your 14-day free trial and explore Growave’s plans to launch or upgrade a loyalty program with built-in reviews, referrals, wishlists, and shoppable UGC — all from one retention platform (explore Growave's plans).

FAQ

Which industries most commonly run loyalty programs?

Retail, food & beverage, travel & hospitality, marketplaces, financial services, and entertainment are among the most active. The specific program model depends on purchase frequency and customer expectations.

What type of loyalty program is best for a small D2C brand?

Small D2C brands often begin with points-based systems tied to purchases and engagement (reviews, social shares) because they are flexible and easy to communicate. Over time, adding tiers or VIP perks can help capture higher-value customers.

How quickly should a merchant expect to see results from a loyalty program?

You can see early gains in repeat purchase rate and engagement within weeks if the program is visible and rewards are meaningful. Full ROI often unfolds over months as members accumulate points and the program matures.

How do reviews and UGC fit into a loyalty strategy?

Reviews and UGC increase trust and conversion. Rewarding customers for leaving reviews or sharing photos both grows your content library and gives members non-transactional ways to earn points, deepening engagement.

If you want hands-on support from our team, compare plan features and see pricing to choose the best fit for your growth stage (view plan details).