It's 2025, and Retention is the new Acquisition.

Ad costs are rising, and attention spans are shrinking. The brands that grow fastest are the ones that turn customers into loyal fans.

A loyalty program helps you do that.

Whether you run a Shopify store or a large ecommerce brand, the right loyalty program can increase repeat purchases, improve retention, and grow lifetime value (LTV).

This guide shows you how to design a loyalty program that performs. You’ll also find 15 examples of brands doing it right.

Benefits of a Loyalty Program

1. More Repeat Purchases

Loyalty programs keep customers coming back. Members spend 20–40% more per order than non-members. Rewarding purchases turns buying into a habit.

2. Higher Lifetime Value

Returning customers are more profitable than new ones. When you reward loyalty, you increase how much a customer spends over time and reduce your marketing costs.

3. Stronger Brand Connection

Modern loyalty programs build relationships, not just transactions. Customers who feel appreciated are more likely to recommend your brand to others.

4. Better First-Party Data

Every sign-up, referral, or review gives you valuable customer insights. This helps you personalize marketing and depend less on paid ads.

Common Types of Loyalty Programs

1. Points-Based Programs

Customers earn points for purchases or actions such as leaving reviews or referring friends.
Best for: Apparel, beauty, and lifestyle brands.
Example: 100 points equals ₹100 off.

2. Tiered Programs

Customers move through levels like Bronze, Silver, and Gold. Each tier unlocks better rewards.
Best for: Premium and high-average-order-value brands.
Example: Sephora Beauty Insider.

3. Paid or VIP Programs

Members pay a small fee for perks such as free shipping or early access.
Best for: Brands with frequent buyers.
Example: Amazon Prime.

4. Referral Programs

Customers earn rewards when they bring in new buyers.
Best for: Community-driven brands.

5. Gamified or Experience-Based Programs

Add badges, challenges, and progress tracking to make engagement fun.
Best for: Gen Z-focused or social-first brands.

How to Plan Your Loyalty Program

1. Set Clear Goals

Decide what you want your program to achieve. You might want to increase repeat purchases, referrals, or average order value. Goals guide your setup.

2. Understand Your Customers

Study their buying habits and motivations. Beauty shoppers like early access, while apparel customers prefer cashback or store credit.

3. Keep It Simple

Avoid complicated point systems. Use easy ratios like “$1 = 1 point” and make redemption rules clear.

4. Offer Meaningful Rewards

Combine discounts with emotional benefits. Early access, birthday gifts, and community access make rewards more memorable.

5. Ensure Cross-Channel Integration

Let customers earn and redeem points on your website, mobile app, and physical stores. A consistent experience builds habit and trust.

How to Measure Program Success

Tracking performance helps you improve over time. Focus on metrics that match your goals.

Test and adjust rewards, tiers, and communication based on what drives engagement.

15 Best Ecommerce Loyalty Program Examples

Here are 15 ecommerce loyalty programs that consistently drive retention, engagement, and revenue. Each example shows how the brand incentivises loyalty and what your Shopify brand can learn from it.

1. Sephora – Beauty Insider

How it works: Sephora runs a tiered rewards program based on annual spending. Members earn one point per dollar and redeem them for products or exclusive experiences. Higher tiers unlock early access, birthday gifts, and special events.
Why it works: The sense of progression motivates customers to spend more.
Takeaway: Add clear milestones and visible status levels to your loyalty program to increase engagement.

2. Glossier – Glossier Rewards

How it works: Glossier gives points for purchases, referrals, and product reviews. Members can redeem points for free products or early access to new launches.
Why it works: The program rewards authentic engagement and community participation.
Takeaway: Encourage referrals, reviews, and UGC to grow your brand organically.

3. Dr. Squatch – Squatch Nation

How it works: Members earn points for every order, product review, or referral. They can redeem points for discounts or free products.
Why it works: The brand keeps the experience fun and uses a tone that fits its personality.
Takeaway: Keep your loyalty branding consistent with your voice and audience. Make it feel like joining a club, not a transaction.

4. The Honest Company – Honest Rewards

How it works: Members earn points for every dollar spent and for simple engagement actions like subscribing or following the brand online. Rewards include discounts and product bundles.
Why it works: The rewards align with the brand’s family and wellness focus.
Takeaway: Align your loyalty experience with your brand mission. Let customers feel that their participation supports your purpose.

5. Blume – Blumetopia

How it works: Customers earn points for purchases, referrals, and social engagement. Members unlock exclusive discounts and access to new products as they level up.
Why it works: The program builds a strong sense of community and self-expression.
Takeaway: Reward both shopping and social sharing. It helps you build loyalty and awareness at the same time.

6. Haus Labs – Haus Rewards

How it works: Members earn points for purchases and can redeem them for early access and exclusive experiences.
Why it works: The brand uses exclusivity to create excitement and anticipation.
Takeaway: Offer early access or VIP rewards to build emotional loyalty with your superfans.

7. ILIA Beauty – Clean Crew Rewards

How it works: ILIA offers points for purchases and product engagement. Higher tiers unlock early access and rewards.
Why it works: The program connects to their clean beauty values.
Takeaway: Build loyalty programs that reinforce what your brand stands for. It makes rewards feel purposeful.

8. Olaplex – OLAPLEX Rewards

How it works: Customers earn points for purchases, referrals, and sharing results on social media. They can redeem points for products or exclusive kits.
Why it works: The brand uses social proof to encourage engagement and advocacy.
Takeaway: Turn customers into ambassadors. Reward content creation and referrals to grow trust.

9. Love Wellness – Love Yourself Rewards

How it works: Members earn points through purchases and by engaging with educational content. They can redeem them for discounts and curated wellness boxes.
Why it works: Rewards support the brand’s mission to promote women’s wellness.
Takeaway: Connect your loyalty program to your educational or mission-driven goals. It deepens brand connection.

10. Pura Vida Bracelets – Pura Vida Rewards

How it works: Customers earn points for purchases, referrals, and following the brand on social media. Rewards include free products and access to limited collections.
Why it works: The brand combines lifestyle and purpose with its rewards.
Takeaway: Tie your program to a cause or lifestyle value. It builds loyalty with meaning.

11. Girlfriend Collective – Girlfriend Rewards

How it works: Members earn points for purchases, reviews, and recycling old clothing. They can redeem points for discounts and exclusive drops.
Why it works: The program promotes sustainability and long-term engagement.
Takeaway: Reward eco-friendly actions or repeat behaviours to build emotional loyalty.

12. Gymshark – Gymshark Rewards

How it works: Members earn points for purchases and for participating in social or fitness challenges. They can redeem them for early access and special drops.
Why it works: The rewards tap into community pride and brand culture.
Takeaway: Use loyalty programs to strengthen community identity. Create shared goals and celebrations.

13. Native – Club Native

How it works: Customers earn points for every purchase and subscription renewal. Rewards include discounts and product bundles.
Why it works: The program increases subscription retention and encourages repeat purchases.
Takeaway: Reward recurring behaviours like refills or subscriptions to stabilise revenue.

14. Doe Lashes – Doe Rewards

How it works: Members earn points for purchases, referrals, and social content. They can redeem rewards for early access or exclusive lash sets.
Why it works: The program creates a sense of exclusivity and recognition.
Takeaway: Make rewards feel special. Exclusivity increases emotional loyalty.

15. Wild – Wild Rewards

How it works: Wild, the natural deodorant brand, gives points for every refill order, review, or referral. Members can use points for discounts or eco-friendly perks.
Why it works: The brand rewards sustainable choices while building repeat purchase behaviour.
Takeaway: Build rewards around refill or retention habits. It encourages sustainability and repeat revenue.

Key Lessons for Your Brand

1. Keep rewards simple and visible. Customers should always understand how to earn and redeem points.

2. Focus on emotional loyalty. Rewards that reflect your mission or values build stronger connections.

3. Encourage community and advocacy. Reward UGC, reviews, and referrals.

4. Use exclusivity wisely. Early access and VIP perks make loyal customers feel valued.

5. Make data your advantage. Track actions and personalise rewards based on customer behaviour.

Choosing Your Loyalty Program Software

To launch a loyalty program that drives real retention, choose software that integrates smoothly with your e-commerce stack.

Look for these features:

• Points, tiers, and referrals

• Personalised reward recommendations

• Easy integration with Klaviyo, Shopify, and your CRM

• Analytics and ROI tracking

• Customizable branding and on-site widgets

Sway Loyalty helps you build smart, data-driven loyalty programs tailored for DTC brands.
You can create tiered rewards, automate referrals, and personalise incentives using cohort-based insights.

If you want to retain more customers, increase LTV, and turn loyalty into revenue, start building with Sway Loyalty today.