-- Originally posted on: https://bonusqr.com/article/loyalty-program-what-it-is
Loyalty programs have come a long way from stamps and plastic cards. In today’s digital world, they’re not just about repeat purchases—they’re about building relationships, boosting brand love, and collecting data that drives smarter decisions. Modern loyalty programs are fast, flexible, and deeply personal. Want to know how they work, what options are out there, and why they’re a game-changer for businesses? Keep reading—we’ve got you covered.
More importantly? We’ll show you how to turn first-time buyers into lifelong fans.
But before we dive into types and strategies—let’s cover the basics.
Because yes, even loyalty programs need a proper definition.
What is a Loyalty Program?
At its core, a loyalty program is simple. It rewards customers for coming back.
Think points, discounts, early access, free stuff… The more they shop, the more they earn.
But it’s not just about giving perks. It’s about building habits.
Loyalty programs make people feel recognized—and that keeps them choosing you over the competition.
And the numbers don’t stop there. We’ve gathered some of the latest data to show just how powerful loyalty programs can be:
- Membership is booming.
As of 2024, the average U.S. consumer is enrolled in around 19 loyalty programs—the highest in the past decade. (Source)
- But not everyone’s engaged.
Only about 49% of people actively use the programs they sign up for. That’s a big opportunity for better design and communication.
- Loyalty influences behavior.
Over 70% of consumers say they’re more likely to recommend a brand with a strong loyalty program.
- Personalization makes a difference.
Around 68% of shoppers prefer brands that offer tailored discounts based on past purchases.
- Mobile is king.
Nearly 60% of loyalty members want to access their perks via mobile apps.
So what does all this tell us?
Loyalty programs aren’t just popular—they’re powerful. When done right, they shape how people shop, spend, and stay connected to your brand.
Types of Loyalty Programs
There’s nothing such as a perfect formula. Some customers want points. Others want perks. A few just want to feel special.
That’s why businesses have options—lots of them. From simple punch cards to full-blown VIP experiences, each program offers a different path to customer loyalty.
Let’s break down the most popular types and help you find the right fit for your brand.
Want to launch a loyalty program for your business?
Set it up in just a few minutes!
Try for FREE
- Points-Based Programs
This is a classic. Spend money, earn points. Easy math, instant gratification.
Most programs follow a simple rule—like 1 point for every $1 spent. Over time, those points pile up and can be traded in for rewards: discounts, freebies, early access, or even exclusive experiences.
Why does it work?
Because it’s clear, predictable, and makes every purchase feel like progress.
Brands love it too. You can boost engagement by offering double points during slow seasons, linking points to customer accounts or mobile apps, and tracking activity without lifting a finger.
2. Tiered Programs
In Tiered Programs, customers climb ranks based on how much they spend—or how often they shop. The higher the tier, the sweeter the perks.
We’re talking VIP treatment: early access to new products, special offers, birthday gifts, and more. It’s a great way to reward your best customers—and give everyone else a reason to reach the next level.
3. Prepaid Loyalty Programs
Customers can buy selected items in advance—like coffee—and save money. For example, pay for 5 coffees upfront and get 6 coupons in return. It’s a simple way to reward repeat purchases and offer extra value to loyal customers.
4. Cashback Programs
Some people don’t want points. They want their money back—literally.
Cashback Programs make that happen. Instead of saving up rewards, customers get a percentage of their spending back, either as real cash, store credit, or digital wallet balance.
It’s simple, clear, and seriously satisfying.
Spend $100, get $5 back to use next time.
That kind of instant value speaks to deal-seekers and practical shoppers alike.
And for businesses? It’s a powerful way to drive repeat purchases, boost average order value, and keep customers coming back for more.
5. Reward for visiting
A Reward for visiting loyalty program gives customers incentives simply for showing up, whether online or in-store. It’s a great way to increase foot traffic, build habits, and stay top-of-mind with your audience.
6. Special price list for members
Sometimes, the best reward is a better price. With this type of loyalty program, returning customers get special discounts—no points, no tracking, just lower prices.
7. Hybrid Programs
These combine elements from different loyalty models—for example, a points system with tiers or a paid membership that includes referral bonuses.
Companies with Loyalty Programs (and Loyal Costumers): Get inspired!
Ever wonder why people keep going back to the same coffee shop or always choose the same online store? Loyalty programs are a big part of the magic.
Take Starbucks Rewards. Every latte earns you points. Rack up enough, and your next drink is free. Simple, satisfying, and addictive—in a good way.
Sephora takes it up a notch with a tiered program. The more you spend, the more you get—birthday gifts, sneak peeks at sales, and VIP treatment.
These programs aren’t just clever. They create habits. They build trust.
And most importantly—they turn first-time customers into loyal fans who keep coming back for more.
Different audience, different game.
2. Digital vs. In-Person Programs
If your business operates primarily online, a digital-first program with app or email integration is key. Look for systems that support automation, personalized offers, and mobile tracking.
Brick-and-mortar businesses, on the other hand, may want to use stamp cards, QR codes, or POS-linked systems to keep things simple and accessible during checkout. Hybrid businesses should aim for seamless experiences across both channels.
3. Aligning with Brand Values
Choose a loyalty program that fits your brand personality and customer values. For example, if your brand focuses on sustainability, a value-based program that donates to environmental causes may resonate more than a basic discount. If your business is all about luxury and exclusivity, a tiered rewards model with VIP perks can strengthen your positioning.
4. Budget and Scalability
Start with what you can manage. Small businesses may opt for simple systems like punch cards or basic digital platforms. As you grow, consider scaling up to more advanced solutions with data analytics, segmentation, and automated communications.
5. Know Your Customer
Ultimately, the best loyalty program is one your customers will actually use. Take time to understand their preferences—do they value cash savings, exclusive access, or giving back? Survey your audience or test different formats to find what drives engagement.
Final Thoughts: Loyalty That Lasts
Loyalty programs aren’t just a nice-to-have—they’re a growth engine. Done right, they turn shoppers into regulars, and regulars into raving fans. Whether you're just starting or scaling fast, the right program can set you apart, build trust, and keep customers coming back for more. Because in the end, it’s not just about points or perks. It’s about making people feel valued. And when that happens—loyalty follows.
Contact Info:
Name: Bonus QR
Email: Send Email
Organization: Bonus QR
Website: https://bonusqr.com/
Release ID: 89160591
If there are any problems, discrepancies, or queries related to the content presented in this press release, we kindly ask that you notify us immediately at error@releasecontact.com (it is important to note that this email is the authorized channel for such matters, sending multiple emails to multiple addresses does not necessarily help expedite your request). Our responsive team will be available round-the-clock to address your concerns within 8 hours and take necessary actions to rectify any identified issues or support you with press release takedowns. Ensuring accurate and trustworthy information is our unwavering commitment.