Why Industry-Leading Companies Have Loyalty Programs | Hydrogen Blog
Why Industry-Leading Companies Have Loyalty Programs

Why Industry-Leading Companies Have Loyalty Programs

At just about any coffee shop, from a big chain to a tiny mom and pop store, you can earn free coffee when you buy a certain number of drinks. When you go to grocery stores, you get discounts in return for signing up for rewards programs. Sporting goods stores and home repair shops encourage you to accrue points and earn $10 off codes. 

It seems just about every successful company has a loyalty rewards program. Why are they so common, and what are the benefits of your company implementing corporate rewards programs? 

Why Successful Companies Use Customer Loyalty Programs

When you plan your travel itinerary for a vacation, what’s the first thing you look at? Most people don’t make their travel decisions based on what hotel is closest to the zoo they want to visit or which flight arrives at the most optimal time. Instead, they consider how to redeem their loyalty points to make their vacation cost less and earn the greatest value. 

Customer loyalty programs reward people for their long-term use, and these benefits can often sway consumers to return to a brand many times. Using frequent flyer miles or hotel rewards programs, for instance, often saves customers money, but they also enjoy the challenges and fun of accumulating those points. Loyalty programs can turn shopping into a more rewarding experience by encouraging emotional investment in decision-making. In fact, consumers who engage in high-performing loyalty programs are 78% more likely to pay more, just to stay with a brand.

4 Examples of Successful Loyalty Programs

There are many different types of corporate rewards programs available to increase customer engagement. Here are four innovative customer loyalty programs to inspire you as you start your own: 

1. Sephora

With over 25 million members and counting, the Beauty Insider loyalty program allows customers to exchange their points for discounts and free beauty products. However, unlike other tiered loyalty programs, customers can also trade their points for experiences such as exclusive access to launch events and creating personalized fragrances. Access to the Rouge tier drives customers to spend at least $1,000 per year for exclusive benefits.

2. Walmart

Walmart’s new loyalty program Walmart+ launched in September 2020, and it reached 32 million members in just a year. Walmart+ gives shoppers access to unlimited free delivery services, discounts on fuel, and the ability to scan and go while shopping in-store. Members also contribute to Walmart’s online presence by generating 26% of online sales.

3. Starbucks

The popularity of Starbuck’s loyalty program lies in its mobile app. With a quick scan, members can make payments and earn points for future purchases. Starbuck Rewards members grew by 18% in the second quarter of 2021 in the United States to reach 23 million members

4. Amazon

Amazon’s membership loyalty program, Amazon Prime, is 200 million global members strong and counting. As a paid membership program, Amazon Prime gives customers access to free two-day shipping and other benefits such as access to Amazon’s streaming service and Prime Day sales. Prime members are incredibly loyal to the program, with over 91% of members only using Amazon for their last purchases. 

Sign up for Hydrogen to Build a Rewards Program

Do you need assistance creating a rewards program or taking an existing one to the next level? Sign up for Hydrogen today to create a custom loyalty and rewards program for your brand. 


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