Best Loyalty Program Examples In Ecommerce

REI members spend 4x more annually than non-members, generating over $171 million in member rewards in 2022 alone. These aren't just loyalty points - they're cash dividends that members earn by shopping everyday at full price. In my two decades as President of KEEN and leading digital transformations at Columbia Sportswear and Deloitte Digital, I've watched countless brands (including my own) struggle with discount addiction. REI and Costco cracked the code on customer loyalty decades ago, and their model is the future of retail. Let me share how these retail giants transformed discount hunters into full-price shoppers, and why every modern brand and retailer needs to pay attention. 𝗟𝗲𝘁’𝘀 𝘀𝘁𝗮𝗿𝘁 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗳𝗮𝗰𝘁𝘀… Costco Wholesale (source: Costco 2023 Annual Report): - 128 million paid members worldwide - 90% membership renewal rate globally - $4.6B in membership fees in 2023 REI (source: REI 2022 Annual Report): - 23 million co-op members - 75% of total sales come from co-op members - Members spend 4x more annually than non-members - Generated $171.2M in member rewards in 2022 While most brands and retailers were chasing points programs and discount codes, two retail giants quietly perfected the art of customer loyalty decades ago. REI and Costco's dividend-based membership programs have consistently driven full-price purchases while building incredible customer loyalty. Their secret? Understanding a fundamental truth about human behavior: customers will gladly pay full price today for a meaningful reward tomorrow. Here's the brilliance behind their model: These companies fundamentally changed how customers think about value. Instead of training shoppers to wait for discounts, they created a system where every purchase builds toward an end-of-year cash reward. This simple shift transformed their customers from discount hunters into full-price shoppers. At Angle, we're bringing this proven model directly to Shopify brands. Premium brands and retailers can now offer the same powerful incentive structure: - Cash back rewards on full-price purchases - Instant visibility into accumulated cash-back rewards - Seamless redemption across channels - Paid or free membership programs - Digital wallet passes instead of physical membership cards The future of brand building isn't endless discounting - it's giving customers as many compelling reasons to pay full price. REI and Costco figured this out decades ago. Now, Angle is making it possible for every brand and retailer to apply these same principles. Let's be brutally honest: Slapping a points program onto your existing business model isn't loyalty - it's a band-aid. True loyalty isn't bought with discounts or earned through generic platforms. It's built by fundamentally rethinking how value flows between your brand and your customer.

What if your product sales isn’t the end goal, but the starting point? That’s exactly how Lululemon is redefining loyalty! Lululemon’s paid Studio Membership isn’t open to everyone. It’s only available to those who own Mirror, their home workout device. What happens when you blend owned products with gated memberships? 📌 You raise the bar for brand engagement Only customers with deep product buy-in can access premium benefits such as exclusive workout content, in-store events, and 10% off. 📌 You create a loyalty loop Buy the product → Unlock perks → Use it more → Stay loyal → Buy more. 📌 You turn product use into habit The Mirror isn’t just a one-time purchase. With Studio Membership layered on top, it becomes a daily ritual, one that's tied to Lululemon’s ecosystem. 📌 You shift from discounting to value-building This isn’t about coupons. It’s about community, content, and identity, built around ownership. Here’s the insight for DTC and lifestyle brands: If your product is premium, your loyalty strategy should be too. → What if the access to your best perks was earned, and not given? → What if buying your product is the key to joining your most exclusive and engaged community? Because the future of membership and loyalty isn’t “sign up to save.” It’s “own the product, earn the tribe.” #lululemon #ecommerce #d2c #shopify

I analyzed 100+ loyalty programs in the last 30 days. Most brands still run loyalty like it’s 2009: Earn points, get a discount, repeat. The top 10%? They’re using loyalty to change behavior- not just reward it. If I were Head of Loyalty at a $10B+ brand today, here are the brands I would copy to build a program that drives LTV, repeat purchases, and real retention: PAYMENT-LED: 1/ STARBUCKS: 34M members, $1.78B stored value, 3x higher spend from rewards members. My kids love their hot chocolate and cake pops - so Starbucks has a special place in my heart 2/ TARGET: Circle members spend 5x more, with $4B processed through their payment rails in Q1 alone. Huge creds to Efrain Irizarry 3/ 7-ELEVEN: 55M+ members, 38% of transactions through their app 4/ DUNKIN': Wallet reloads driving 2.5x visits, 20% higher AOV 5/ CHASE SAPPHIRE: Premium card driving aspirational loyalty with travel and dining rewards aligned with luxury lifestyle; strong partner ecosystem SUBSCRIPTION-BASED: 6/ AMAZON PRIME: Loyalty disguised as convenience 7/ RH MEMBERSHIP: Luxury subscription boosting margins 8/ COSTCO: Unbeatable renewal rates and loyalty lock-in 9/ PANERA UNLIMITED SIP CLUB: Daily engagement via low-cost subscription AIRLINE & TRAVEL: 10/ UNITED: Loyalty program generated $1.8B in EBITDA (26% of total) 11/ DELTA: Loyalty now constitutes 57% of total revenue 12/ AMERICAN: 61% of flight revenue from AAdvantage members (used as $10B loan collateral) 13/ JETBLUE: Loyalty program worth $5.5B, more than half their financeable assets RETAIL AND FASHION: 14/ ADIDAS ADICLUB: 240M+ members, 2x higher LTV, 50% more frequent purchases 15/ UNDER ARMOUR: Members 2x more likely to make repeat purchases within 90 days 16/ KITH: Early access, raffles, skip-the-line, exclusive events 17/ SEPHORA: Tiered rewards building emotional connection beyond discounts QSR & FOOD SERVICE: 18/ CHICK-FIL-A: Loyalty tied to brand values, not just points 19/ SWEETGREEN: Personalized spend challenges over traditional points ~~ While many brands still hand out points like it’s 2009, top performers are building payment-loyalty loops that shape behavior- not just reward it. Less old-school points. More embedded wallets, subscriptions, and emotional incentives to drive customer engagement and brand loyalty. The best brands don’t see loyalty as a marketing tactic, they treat it like a strategic financial asset. PS: DM me “loyalty” to get the full Top 30 breakdown + our Loyalty Program Launch Checklist we use with leading fintech, retail, and QSR brands.