Consumers today have more choices available to them than ever before. So, brands need to be proactive in seeking out and retaining loyal customers.
That’s why loyalty programmes are critical to businesses’ success.
But not every programme is equally effective in this environment.
To effectively court and keep loyal buyers, you must tailor your programme to their needs.
Epsilon has built loyalty programmes for organisations in every industry, with a platform that reaches over 600 million members annually. We know what makes the best ones work.
Below, we’ll take a look at five of the best loyalty programmes in effect right now as models for what you can do with yours—especially with the help of a quality platform like Epsilon’s.
Top 5 Loyalty Programme Examples
1. Tesco's Clubcard Programme
Tesco first debuted the Clubcard in 1995, and it has been rewarding customers’ loyalty (and driving immense value for Tesco) ever since. The free base membership provides shoppers with cash-back in the form of points that they can redeem for vouchers to be used in-store or online.
Point accrual starts at a rate of one point per £1 spent on items purchased from Tesco. There are also special, rotating events (Clubcard Boosts) that offer greater earning or redemption rates. The best-known example is the annual Christmas Boost, which debuted in 2013.
In 2019, Tesco also launched a paid tier for the programme, Clubcard Plus. For a monthly fee of £7.99, the most loyal of Tesco’s customers gain access to four unique benefits each month:
- A flat 10% off participating Tesco brands in-store
- Two 10% discounts on “big shops” (min. £40 spent)
- Double data for participating Tesco Mobile customers
- A Tesco Bank credit card with zero foreign exchange fees
Both the free and paid tiers have been incredibly successful. Reuters reports that Clubcard purchases account for over 95% of Tesco’s promotional sales, driving increased profit outlooks in 2021 and 2022 after the brand captured nearly 28% of the grocery market share in 2020.
Tesco’s Clubcard is proof that rewarding customers’ loyalty also rewards businesses in turn.
2. Dunkin Donuts' DDPerks Programme
The restaurant industry is notoriously fast-paced and volatile. The constant flux of consumer trends and new competitors means companies need to make customers’ decisions easier. This is equally true for small, family-owned restaurants and larger, internationally-recognised chains.
Dunkin’s DDPerks sees over 20 million transactions per day from its 24 million active users. By making its users’ lives easier when out and about or navigating their hectic mornings, it pays dividends for loyal customers—and for Dunkin’.
Like other examples on this list, Dunkin’ leverages a loyalty platform for its loyalty programme, which helps it tap into an unprecedented network of customers—fans—and their interests. It connects with millions of enrolled customers every day, making it easier for them to save money on daily coffees and other treats while earning points toward greater savings down the road.
Importantly, they order, save, and learn about increased savings and other rewards in one place.
What makes these customer-facing features extra beneficial on the business side is seamless POS integration across every Dunkin’ location, along with its mobile app. Customers and corporate alike value frictionless UX, which has led to a 50% increase in spending YoY.
America runs on Dunkin’—and Dunkin’s success runs on customer loyalty.
3. The Body Shop's Love Your Body Club
The old saying goes, it is better to give than to receive. And sometimes, the best rewards are ones that customers can use for someone else’s benefit rather than directly for themselves.
Loyal Customers of The Body Shop have the ability to channel their rewards toward causes that matter to them, making the world a better place. The Love Your Body Club offers the customary benefits, like 1 point per dollar spent, access to exclusive events, and gifts for their birthdays.
The kicker is that the Body Shop also empowers loyal customers to cash in their vouchers for charitable donations to select causes. LYBC Charities currently supported include:
- Black Lives Matter
- NO MORE
- World Land Trust
- Born Free USA
- Wires
Points to be redeemed for donations or other rewards are earned for qualifying purchases, including all products and services The Body Shop offers, online or in-store. LYBC Eligibility for these and other benefits is open to any shopper over the age of 18 with a valid email address.
Before launching LYBC, The Body Shop’s legacy programme boasted 900,000 users. Its growth in loyalty is tied in part to dropping the £5 startup fee but also to empowering its users ethically.
4.O2's Priority and Rewards Programme
UK telecommunications giant O2 uses its loyalty programme to thank its customers. There are two ways in which it rewards loyalty and consistent top-ups—Priority Offers and O2 Rewards.
Priority offers include exclusive access to deals and savings from rotating partners. For example, customers might enjoy complimentary beverages or free meals courtesy of O2. Loyal customers also have first or pre-sale access to tickets for exclusive events (Priority Moments), and these are often offered at steep discounts from what non-O2 buyers would pay for the same seating.
These benefits are available to all O2 customers, but they’ll need to use the app (and have their O2-connected phone nearby) to access their tickets, discounts, and other loyalty rewards.
O2 also provides Rewards to its Pay As You Go customers, applying 5-10% in cash back rewards for their monthly top-ups—5% for the first six months, then 10% every month afterward. Loyal customers can earn a maximum of £150 in redeemable rewards every three months. Earned rewards can be used toward Tickets and other Priority Offers or redeemed for gift cards.
But O2’s loyal customers aren’t the only ones reaping the benefits.
According to market research, O2’s programme saw:
- Over 2.6 million registrations in its first year
- A 2.5% customer turnover rate
- Generated ROI of £9.60 per £1 spent.
5. British Airways Executive Club
British Airways is the premier airline in the United Kingdom, and its services fly all across the world. It rewards its most frequent flyers with the Executive Club benefits, which empower loyal customers to earn miles—Avios—that they can spend on flights and a host of other rewards.
Customers earn Avios and Tier Points (see below) when they book flights through British Airways or their oneworld alliance partners. Rates start at 25% of miles flown for the lowest fare classes (with a minimum of 125 per flight) and range up to 300% of miles flown (with 1500 minimum) for the highest classes. Other partnered airlines’ Avios rates and minimums may vary.
Customers earn greater benefits at higher Executive tiers when they accumulate more Avios:
- Blue – The free tier customers begin at, with exclusive member-only benefits like access to discounted flights, priority on reservation lists, and preferential seating and meals.
- Bronze – At 300 Tier Points (min, 2 flights per year), customers get access to priority check-in and boarding, and complimentary seat selection a week before departure.
- Silver – At 600 Tier Points (min. 4 flights per year), customers earn Avios at a higher rate (1.5x), extra baggage, access to business lounges, and free seat selection at booking.
- Gold – At 1500 Tier Points (min. 4 flights), customers earn first-class check-in and booking, access to First lounges, and other benefits—locked in for life at 35,000 Points.
All levels above blue also correspond to oneworld alliance rewards, so frequent flyers who also use other participating airlines can enjoy benefits such as priority boarding across all of them.
It’s no wonder more than 13 million flyers worldwide are British Airways Executive Club members, being rewarded handsomely for their loyalty—and helping BA’s profits soar.
Optimise Your Loyalty Programme Today
The five examples above all work because they tap into the specific needs and wants of the customer bases they serve. When crafting your own loyalty programme, you’ll need to identify what those are for your customers; that’s the best way to incentivise more (and higher) spend.
Whatever kind of programme you choose, the best way to launch it is on a robust platform.
Epsilon’s loyalty programmes are highly customisable to any customer or business needs. We help you identify the highest-value members and reach them with personalised offers they’re most likely to appreciate. Then, seamless maintenance and support keep them loyal long-term.
Get in touch today to learn about how an Epsilon loyalty programme will benefit you!
Have More Loyalty Programme Questions? We've Got Answers
- Is Starting a Loyalty Programme Worth It?
- Are There Different Types of Loyalty Programmes?
- How Much Do Loyalty Programmes Cost to Start?
