Loyalty programs have become a cornerstone of modern eCommerce, driving customer retention and boosting sales. In today’s competitive market, where convenience and personalized experiences are key, a well-designed eCommerce loyalty program can be the difference between retaining customers and losing them to competitors.
With the rise of online shopping, particularly during the pandemic, businesses have embraced creative strategies to encourage repeat purchases and build long-term customer relationships. To highlight what works best, we’ve explored the top 8 eCommerce loyalty programs and uncovered the unique features that make them stand out. Whether it’s offering seamless rewards, exclusive perks, or innovative ways to engage, these programs provide valuable insights for any business looking to enhance customer loyalty.
How is the eCommerce industry changing?
The eCommerce sector has seen substantial growth, and the COVID-19 pandemic accelerated this expansion dramatically. With in-person shopping limited, consumers turned to online platforms to meet both practical and emotional needs. Get ready for some eye-opening insights, as the data and trends behind this shift are astounding.
According to Statista, In the United States, the impact was pronounced. E-commerce’s share of total retail sales rose from 11% in 2019 to approximately 14% in 2020, highlighting the rapid adoption of online shopping during the pandemic
The eCommerce industry's growth line
The eCommerce industry has experienced significant growth in recent years, with online sales accounting for 19.4% of total retail sales worldwide in 2023.
This figure is projected to increase to 22.6% by 2027, indicating a steady rise in the adoption of online shopping.
In terms of revenue, global retail e-commerce sales reached approximately $5.8 trillion in 2023.
Projections suggest that this number will grow to $8.09 trillion by 2027, reflecting the expanding influence of eCommerce in the global retail market.
What is an eCommerce loyalty program?
An eCommerce loyalty program is a rewards system designed to keep customers coming back by offering perks and incentives. These eCommerce loyalty programs often include features like earning points on purchases, unlocking higher tiers for more rewards, or enjoying exclusive offers. Some programs add fun elements like gamification, letting customers reach new levels or earn badges as they shop. The goal is to create a smooth, enjoyable experience that makes customers feel valued and connected to the brand.
Types of eCommerce loyalty programs
There are several types of loyalty programs for eCommerce that can be tailored to fit the unique needs of online businesses. The most popular types include:
- Points-based programs: The simplest and often most effective option, where customers earn points for each purchase. These points can later be redeemed for rewards like discounts, freebies, or exclusive items, enhancing both engagement and customer lifetime value. For brands looking for straightforward rewards, this is among the best eCommerce loyalty programs.
- Tiered programs: Tiered programs reward customers based on loyalty levels. As customers move up through the tiers with more purchases, they unlock better perks, which encourages sustained loyalty and larger spending over time.
- Value-based programs: Ideal for brands that connect with customers around a shared mission or cause. For example, Starbucks’ program, which emphasizes community and sustainability, is a great example of a loyalty program for eCommerce that aligns with company values.
- Universal programs: These programs allow customers to earn and redeem rewards across multiple brands, offering convenience and broader appeal for frequent shoppers.
- Paid programs: For an upfront fee, customers access exclusive discounts, premium perks, or unique rewards, creating a sense of exclusivity and value for loyal customers.
Selecting the best eCommerce loyalty program for your brand depends on factors like your audience, brand goals, and industry. By aligning your choice with these factors, you can create an ecommerce loyalty program that resonates with your customers and fosters long-term relationships.
Goals of an eCommerce loyalty program
Now that you understand what an eCommerce loyalty program entails, let’s dive into some key goals that a well-designed eCommerce loyalty program can help you achieve:
- Increasing customer retention: eCommerce loyalty programs are designed to keep existing customers engaged and encourage them to make repeat purchases, building long-term loyalty.
- Boosting sales By implementing eCommerce loyalty programs, you can drive repeat purchases and attract new customers. With each interaction, customers can earn rewards like discounts, cash back, freebies, or gift cards, which incentivize further spending.
- Enhancing customer profiles: Online rewards programs provide valuable insights into customer behavior. This data can improve personalized content, ad targeting, and future sales strategies, allowing you to serve your customers more effectively.
- Streamlining the buying process: Reward systems in eCommerce help make online shopping more enjoyable and tailored to customer preferences, encouraging customers to spend more as the experience feels seamless and personalized.
- Creating exclusive communities: Loyalty programs foster special groups where members can access unique perks. Known as “experience rewards,” these benefits are often exclusive to VIP members, significantly enhancing loyalty and customer lifetime value.
- Increasing visibility and engagement:Leveraging social media for contests or special events within your loyalty program can create low-cost brand buzz and encourage word-of-mouth, helping your brand reach a broader audience.
8 examples of successful eCommerce Loyalty Programs
Newegg's EggPoints Program
Newegg, a California-based online retailer specializing in computer hardware and consumer electronics, has been a trusted name in tech since 2001. Over the years, the brand has built a loyal customer base of over 40.2 million users, all eager to snag the latest and greatest in tech innovations.
In 2020, Newegg introduced the EggPoints Program, an innovative eCommerce loyalty program aimed at rewarding customers for their everyday interactions with the platform. Designed to enhance customer engagement and retention, this loyalty system ensures customers feel appreciated for their ongoing support.
Here’s how the EggPoints Program works:
Earn Points for Engagement: Customers can accumulate points by actively participating in Newegg’s promotional events, such as flash sales and exclusive product launches.
Feedback Matters: Sharing reviews and feedback as a loyal customer can also earn points, further strengthening the bond between the brand and its users.
Shopping Rewards: Look for the “EggPoints” badge on eligible products—purchasing these items boosts your points balance.
For every pre-tax dollar spent on qualifying products, customers earn one EggPoint. Accumulated points can be redeemed directly on Newegg’s platform, with 100 points equating to $1 in savings. However, there’s a strategic twist: EggPoints come with a 90-day expiration window after becoming available. This creates urgency, encouraging customers to revisit the site and make additional purchases to maximize their rewards.
Why It’s Effective
- Customer Control
Shoppers decide how and when to use their points, allowing them to plan their purchases for maximum value.
- Time-Based Motivation
The 90-day redemption period drives frequent interactions with the brand, keeping customers engaged.
- Exclusive Newegg Use
EggPoints are redeemable only on Newegg.com, encouraging users to explore more of the retailer’s offerings, from the latest GPUs to must-have gadgets.
By tying points to specific products and promotions, Newegg gathers valuable insights into customer preferences and trends. This data allows the company to fine-tune its future campaigns and product offerings, ensuring customers always find something they love.
The EggPoints Program is more than just a loyalty program for eCommerce—it’s a strategic tool that not only rewards customers but also fosters deeper brand connections and boosts repeat business. Whether you’re shopping for a cutting-edge gaming laptop or the latest in smart home tech, Newegg ensures that every interaction feels rewarding.
FARFETCH "Access" loyalty program
FARFETCH, established in 2008, began as an eCommerce platform uniting luxury boutiques globally. Today, it serves customers in over 190 countries, offering products from more than 1,400 leading brands, boutiques, and department stores across 50 countries. To enhance the shopping experience, FARFETCH introduced the Access loyalty program, designed to connect creators, curators, and consumers, providing a unique and personalized journey.
Joining the Access loyalty program is a straightforward process that can be completed in three simple steps:
- Sign Up:
Create an account by providing basic personal information.
- Make Your First Purchase:
Once you make a purchase, you’re automatically enrolled in the Access program. The amount you spend on this initial purchase determines your starting tier within the program.
- Enjoy Exclusive Benefits:
As a member, you gain access to a wide range of rewards and perks tailored to your tier level.
The ecommerce loyalty program operates on a 12-month cycle. During this period, your tier status is reviewed based on your total spending. Customers can move up to higher tiers by meeting the spending thresholds or adjust to a lower tier if their purchases decrease.
Tier Structure and Benefits
- Bronze:
Entry-level tier accessible after the first purchase, offering a welcome reward, birthday reward, and access to private member sales.
- Silver:
Achieved with an annual spend of $1,500, providing all Bronze benefits plus exclusive discounts and free international shipping on two orders.
- Gold:
Unlocked at higher spending thresholds, offering additional perks such as early access to sales and personalized services.
- Platinum:
Includes all preceding benefits with enhanced services and exclusive event invitations.
- Private Client:
The highest tier, offering bespoke services, a dedicated personal stylist, and exclusive access to limited collections.
Flipkart Plus
Flipkart, India's largest online retailer and a Walmart subsidiary, has carved a significant presence in the eCommerce sector. Alongside a vast array of products and its exclusive DigiFlip line—featuring items like laptop bags, tablets, and USB flash drives—Flipkart reported a robust $5 billion in revenue in 2021.
In 2018, Flipkart introduced its innovative ecommerce loyalty program, Flipkart Plus, to enhance customer engagement. Unlike many subscription-based loyalty systems, Flipkart Plus is a no-fee, points-based program designed to reward regular customers. Members earn four SuperCoins for every 100 Indian Rupees (approximately $1.32) spent on the platform. These SuperCoins can then be redeemed for a variety of rewards, making the shopping experience more rewarding and enjoyable.
To become a Flipkart Plus member, customers must have purchased products worth a certain amount over the last 12 months, accumulating at least 200 SuperCoins. This entry barrier ensures that the program benefits loyal and active shoppers, reinforcing Flipkart’s commitment to rewarding consistent patronage. The program not only fosters loyalty but also strengthens the bond between Flipkart and its customer base by offering tangible, appealing rewards for every purchase
Members of Flipkart Plus enjoy an array of exclusive perks designed to enhance their shopping experience:
- Free and Fast Shipping:
Prioritized delivery on purchases.
- Early Access to Sales:
Exclusive entry to major sale events and promotional offers.
- Enhanced Customer Support:
Dedicated and superior customer service.
- Double SuperCoins:
Earn twice the SuperCoins on eligible purchases, further boosting rewards.
- Flipkart Pay Later Options:
Access to flexible payment solutions.
- Partner Ecosystem Benefits:
Enjoy discounts and services from Flipkart’s partner brands in travel, lifestyle, health, and fitness.
- Partner Ecosystem Benefits:
Enjoy discounts and services from Flipkart’s partner brands in travel, lifestyle, health, and fitness.Each purchase is capped at earning 100 SuperCoins, and these points have a one-year expiration, encouraging frequent engagement with the platform.
The Flipkart Plus loyalty program has been a remarkable success. It has achieved over 100% year-on-year growth, with 30% of Flipkart’s monthly active customers enrolled as Plus members. Notably, Plus members transact 5X more frequently and spend 7X higher than regular shoppers. Flipkart now issues over 1 billion SuperCoins per month, enabling customers to enjoy numerous benefits across categories.
This loyalty system exemplifies a thriving eCommerce loyalty program, driving higher engagement, increased spending, and deeper customer satisfaction—a perfect example of how rewards can build customer loyalty and boost business performance.
Walmart+
Walmart, the American retail giant, is synonymous with affordability and convenience. In 2022, Walmart reported revenues of $572.8 billion, solidifying its position as a global leader in retail. Recognizing the growing demand for seamless shopping experiences, Walmart introduced Walmart+ in 2020, a subscription-based membership program designed to provide exclusive benefits for both in-store and online shoppers. Members pay a subscription fee of $12.95 per month or $98 per year to unlock a suite of perks aimed at saving time and money
Key Features of Walmart+
- Free Same-Day Delivery:
Enjoy free delivery from the store with the option to receive goods the same day.
- Consistent Pricing:
Online and in-store prices remain the same, ensuring transparency and trust.
- Convenient Scheduling:
Customers can select their preferred delivery times for added flexibility.
- Free Shipping with No Minimum Order:
Shop freely without worrying about hitting a minimum purchase amount.
- Healthcare Savings:
Members can fill select prescriptions for as little as $0 at over 4,000 Walmart pharmacies.
- Fuel Discounts:
Save five cents per gallon at more than 2,000 participating gas stations.
- Contact-Free Checkout:
Use Walmart’s mobile app for a streamlined checkout process.
- Exclusive Early Access:
Be the first to access promotions, deals, events, and new products.
ALDO Crew
The ALDO Group, a global shoe retailer with over 1,000 stores in 65 countries, has always prioritized offering a unique shopping experience while fostering long-term customer relationships. With plans for expansion into Italy, Norway, France, and Korea, ALDO targeted its key markets—the US, the UK, and Canada—to develop an impactful loyalty program tailored to evolving customer expectations.
In 2019, ALDO launched its first-ever eCommerce loyalty program, ALDO Crew. This data-driven, omnichannel program was crafted to provide a seamless shopping experience and cater to consumer demands in a highly competitive retail environment.
ALDO Crew’s loyalty system is structured into three membership tiers: Crew, Plus, and VIP, offering exclusive rewards and incentives based on customer spending:
Crew Tier
The Crew Tier is the entry-level membership, offering foundational rewards that enhance the shopping journey:
- Welcome Offer:
New members receive a discount on their next purchase, making the start of their loyalty journey rewarding.
- Lowered Free Shipping Threshold:
Enjoy free shipping on orders above $50, encouraging more frequent purchases.
- Price Drops Access:
Exclusive early access to limited-time discounts on select products.
- Bundle Deals:
Discounts on designated product bundles, adding value to each purchase.
- Express Online Checkout:
Fast and seamless checkout experience via the "My Account" feature.
- Birthday Treat:
Celebrate your special day with a personalized discount on your next purchase.
Plus Tier
Unlocked after spending $150–$299 annually, the Plus Tier offers enhanced rewards to deepen customer loyalty:
- 15% Annual Reward:
A one-time 15% discount on purchases, redeemable within a 12-month period.
- Birthday Gift:
Receive a complimentary in-store accessory, adding a personal touch to your experience.
- Handbag Discount:
Get a 20% discount on handbags when paired with footwear purchases, perfect for completing your look.
- Extended Product Warranty:
Enjoy a 6-month extended warranty for added confidence and satisfaction.
VIP Tier
As the pinnacle of ALDO Crew membership, the VIP Tier (achieved by spending $300+ annually) delivers unparalleled exclusivity:
- 20% Annual Reward:
A one-time 20% discount on purchases, providing significant savings within a 12-month window.
- Unlimited Free Shipping:
Say goodbye to shipping fees, with free delivery on every order.
- Exclusive Deals and Surprises:
VIP members enjoy access to special promotions and exclusive offers not available to other tiers.
- Reward Sharing:
Share the 20% Annual Reward with up to five friends, fostering community engagement and goodwill.
The ALDO Crew loyalty program reflects a unified commerce strategy, connecting online and in-store shopping. By integrating purchase data across channels, ALDO ensures customers receive a consistent and rewarding experience, whether they shop on the website or in one of its stores.
SHEIN Bonus Points program
SHEIN, founded in 2008, has swiftly ascended to prominence in the fast fashion eCommerce sector, offering a vast array of affordable apparel and accessories for women, men, and children. By April 2022, the brand's valuation soared to $100 billion, underscoring its significant impact on the global fashion industry.
A pivotal element in retaining and engaging customers is SHEIN’s Bonus Points Program, a meticulously crafted loyalty program for eCommerce that incentivizes repeat purchases and fosters customer loyalty.
Earning SHEIN Bonus Points
SHEIN provides multiple avenues for customers to accumulate bonus points, enhancing their shopping experience:
- Purchases:
Customers earn 1 point for every dollar spent on the platform. This rate increases with higher membership tiers:
- SHEIN Babe:
1 point per dollar.
- SHEIN Lover:
1.5 points per dollar (achieved after spending $100 in a year).
- SHEIN VIP:
2 points per dollar (after spending $500 in a year).
- Product Reviews:
Writing detailed reviews post-purchase can earn up to 17 points per item:
- 5 points for the review.
- 10 additional points for including a product photo.
- 2 extra points for providing size and fit information.
- Daily Check-Ins
Logging into the SHEIN app daily and marking attendance can yield up to 37 points over a week.
- Participation in Activities
Engaging in SHEIN's games, events, and styling contests offers opportunities to earn additional points.
Redeeming SHEIN Bonus Points
Accumulated points translate into monetary savings:
- Conversion Rate:
100 points equate to $1 off a purchase.
- Redemption Limit:
Points can be used to deduct up to 70% of the total product cost in an order, excluding shipping, insurance, and taxes.
SHEIN
- Expiration:
Points have varying validity periods, typically ranging from 7 days to 3 months, depending on how they were earned.
Sephora Beauty Insider
Sephora's Beauty Insider program is celebrated as one of the best eCommerce loyalty programs, boasting a massive 35 million members globally, with 17 million in North America alone. Sephora reveals that these loyal customers contribute to 80% of its overall revenue, solidifying the program as a key element of its marketing success.
This achievement aligns with a Bain & Company study, which found that increasing loyal customers by just 5% can result in a 25% to 95% rise in sales. The loyalty program for eCommerce is carefully designed to foster customer retention, drive engagement, and boost long-term relationships, making it a standout in the beauty industry.
What Makes Sephora’s Beauty Insider Program Exceptional?
- Transparent and Detailed Benefits
Sephora ensures that its customers understand how to benefit from the program. The company provides clear instructions on earning points, redeeming rewards, and progressing through the membership tiers, creating an informed and confident customer base.
- Exclusive Perks
One hallmark of Sephora’s eCommerce loyalty program is its emphasis on exclusivity. With a multi-tiered rewards structure, the program provides unique benefits to loyal members, reinforcing customer value and brand loyalty. This includes access to limited-edition products and exclusive sales, ensuring ongoing engagement.
- Flexible Points-Earning Options
Beauty Insider members earn points through various channels, including purchases made on Sephora's mobile app, website, and in physical stores. Additionally, they can accumulate points at partner retailers and salons, offering unparalleled flexibility and convenience.
- Tiered Membership Structure
Sephora’s tiered system is designed to incentivize higher spending. The Insider tier is free and offers introductory perks, while the VIB (Very Important Beauty Insider) tier provides enhanced benefits for moderate spenders. The highest tier, Rouge, includes premium rewards such as a $100 gift option, early access to products, and exclusive events, rewarding Sephora’s most dedicated customers.
Sephora’s Beauty Insider program is a stellar example of how a loyalty program for eCommerce can blend transparency, exclusivity, and flexibility to create a rewarding customer experience. Its continued success demonstrates the power of loyalty in driving both engagement and revenue, making it a model for brands looking to develop effective eCommerce loyalty programs.
My Best Buy
Best Buy, a multinational consumer electronics giant, operates through retail stores, eCommerce, and call centers, boasting over 1,000 locations and employing approximately 100,000 people in the United States and Canada. In the fiscal year 2021, the company reported a staggering $47.3 billion in global revenue, with over 90% of its earnings originating from the U.S. To strengthen customer relationships and provide a more rewarding shopping experience, Best Buy launched its innovative eCommerce loyalty program, My Best Buy
How My Best Buy Works
The My Best Buy loyalty program offers customers the opportunity to earn points for every dollar spent on qualifying purchases, whether shopping online, in retail stores, or through the mobile app. Membership is free, and customers can progress through three tiers based on annual spending:
- My Best Buy:
Entry-level membership.
- My Best Buy Elite:
Earned by spending $1,500 per calendar year.
- My Best Buy Elite Plus:
Reserved for those spending $3,500 annually.
Key Benefits of My Best Buy:
- Free Shipping and Delivery
Members enjoy free shipping and delivery with no minimum purchase requirements, adding convenience to every transaction.
- Extended Return and Exchange Periods
The loyalty program extends the standard 15-day return window up to 45 days for Elite and Elite Plus members, giving customers greater flexibility and peace of mind.
- Exclusive Member-Only Offers
My Best Buy members receive access to exclusive deals and promotions unavailable to non-members, making their shopping experience even more rewarding.
- Free In-Home Consultations
Elite members benefit from complimentary in-home consultations, ensuring they make informed decisions when purchasing electronics and appliances.
- 24/7 Geek Squad Assistance
The program includes access to Geek Squad’s technical support and diagnostic services around the clock, ensuring members receive top-tier assistance whenever needed.
Wrapping Up
In summary, the best eCommerce loyalty programs focus on making customers feel valued and appreciated through clear rewards, tiered benefits, and personalized experiences. These programs foster long-term loyalty by encouraging repeat purchases and creating a strong bond with customers.
By integrating these elements, businesses can boost engagement, enhance the customer journey, and increase revenue. Looking to build or improve your own program? 99minds can help you create a seamless and effective loyalty experience for your brand.
FAQ on the Best Ecommerce Loyalty Programs:
What is an eCommerce loyalty program?
Beauty loyalty programs are customer reward systems designed to enhance customer retention and satisfaction in the beauty industry. Customers earn points through purchases, referrals, or brand interactions, which can be redeemed for rewards like discounts, free products, or exclusive event access.
Why are eCommerce loyalty programs important?
Top beauty loyalty programs often include clear points systems, tiered rewards (offering exclusive perks at higher levels), birthday rewards, multiple ways to earn points beyond purchases (like social shares or reviews), and diverse reward options such as free samples, gift sets, or spa experiences.
What are examples of successful eCommerce loyalty programs?
These programs reward repeat purchases, making customers feel valued while creating personalized experiences. They encourage brand loyalty by offering benefits that can save money, give access to exclusive products or events, and build a sense of community among members.
How can I create an effective loyalty program?
Focus on clear rewards, personalization, and tiered benefits. Tools like 99minds can help you design and manage a successful loyalty program.