Blog Entry

The Top 5 Innovative Loyalty Programs of 2020 and Why They Work

Loyalty programs have become an essential marketing strategy for businesses in recent years. Not only do they incentivize customers to return and make repeat purchases, but they also provide valuable data and insights for businesses to optimize their marketing efforts. In 2020, many businesses implemented innovative loyalty programs that took the customer experience to the next level. In this article, we will discuss the top 5 innovative loyalty programs of 2020 and why they work.

#1. Sephora Beauty Insider

Sephora Beauty Insider is a loyalty program that rewards customers with points for every purchase they make. Customers can redeem their points for various rewards, including free products, beauty services, and exclusive experiences. The program also offers a tiered system, where customers can unlock new perks and benefits as they spend more.

Why it works: The Sephora Beauty Insider program is highly effective because it caters to the unique needs and interests of its target audience – beauty enthusiasts. The program offers a wide range of rewards and experiences that align with customers’ passions, making them more likely to return and make repeat purchases.

#2. Starbucks Rewards

Starbucks Rewards is a loyalty program that offers customers points for every purchase they make. Customers can redeem their points for free drinks, food, and other rewards. The program also offers a tiered system, where customers can unlock new perks and benefits as they earn more points.

Why it works: The Starbucks Rewards program is effective because it offers a seamless and personalized experience for customers. The program uses customer data to provide personalized recommendations and offers, which makes customers feel valued and appreciated.

#3. NikePlus

NikePlus is a loyalty program that offers customers exclusive access to products, events, and experiences. The program also offers personalized coaching, training plans, and other resources to help customers reach their fitness goals.

Why it works: The NikePlus program is highly effective because it goes beyond just offering discounts and rewards. The program offers valuable resources and experiences that help customers achieve their fitness goals, which builds a deeper and more meaningful relationship with the brand.

#4. Hilton Honors

Hilton Honors is a loyalty program that offers customers points for every stay at a Hilton hotel. Customers can redeem their points for free nights, upgrades, and other rewards. The program also offers a tiered system, where customers can unlock new perks and benefits as they stay more.

Why it works: The Hilton Honors program is effective because it offers valuable rewards and benefits that align with customers’ travel needs and preferences. The program also offers a seamless and personalized experience, which makes customers more likely to return and make repeat bookings.

#5. Tarte Rewards

Tarte Rewards is a loyalty program that offers customers points for every purchase they make. Customers can redeem their points for free products, exclusive discounts, and other rewards. The program also offers a tiered system, where customers can unlock new perks and benefits as they spend more.

Why it works: The Tarte Rewards program is effective because it offers a fun and engaging experience for customers. The program offers unique rewards and challenges that encourage customers to engage with the brand and make repeat purchases.

In conclusion, loyalty programs are an effective marketing strategy for businesses that want to build deeper and more meaningful relationships with their customers. The top 5 innovative loyalty programs of 2020 – Sephora Beauty Insider, Starbucks Rewards, NikePlus, Hilton Honors, and Tarte Rewards – are highly effective because they offer valuable rewards and experiences that align with customers’ needs and preferences. These programs also offer a seamless and personalized experience, which makes customers more likely to return and make repeat purchases.