5 Reward Program Examples that Put Your Business in the Top 1%

With technology moving fast and customer habits shifting just as quickly, loyalty programs have become a key part of how people choose where to grab a coffee, have lunch, or dine out. But at their core, these programs aren’t about novelty. 

They’re about smart, consistent execution. 

For business-to-consumer (B2C) businesses like restaurants and c-stores, well-designed reward platforms offer a way to personalize service, incentivize repeat visits, and gather valuable insights into customer preferences, visit frequency, and spending habits. They’re tools for understanding your most valuable customers and turning occasional visitors into regulars.  

According to the National Restaurant Association’s (NRA’s) 2024 report, 96% of loyalty program users say the model helps them get more value for their money. Over half (52%) already participate in versions offered by restaurants, coffee shops, snack bars, or delis.  

Learn what the best customer loyalty programs do differently and how you can apply those principles to increase repeat visits, boost customer lifetime value (CLV), and scale loyalty throughout your business.  

3 Things the Best Reward Programs Do Differently  

It always comes down to strategy, execution, and tracking. What makes a successful guest loyalty program is how well it aligns with your goals and consumer loyalty profiles. This alignment determines whether your audience responds better to first-time discounts, long-term benefits, personalization, or exclusivity.  

These insights drive how brands adjust their programs to meet guest expectations better. Here’s what top-performing loyalty strategies have in common: 

1. They Prioritize Lifetime Value Over First-Time Discounts 

Customer retention and order frequency often have a bigger impact than acquisition volume. While attracting new customers is important, building lasting relationships with current ones delivers higher return on investment (ROI) over time. Loyalty programs that reward ongoing engagement, such as visits, spending milestones, or referrals, foster more predictable and sustainable growth. 

2. They Use Data to Drive Personalization and Timing 

Instead of a static rewards program, smart businesses use micro-segmentation and behavior-based offers. That’s where loyalty becomes valuable; when guests feel like the brand understands them. Personalized rewards, reminders, and campaign timing based on actual activity help maintain high engagement levels and encourage repeat business.  

3. They Make Loyalty Feel Exclusive and Aspirational 

From your guest’s perspective, exclusivity can be the difference between an average program and one they actually talk about. Most people belong to multiple customer loyalty programs, so they compare what each one offers.  

Features like tiered status, early access, or surprise-and-delight rewards help customers feel recognized. This is where a strong loyalty marketing strategy helps turn occasional buyers into long-term brand advocates.  

5 Customer Loyalty Program Examples that Actually Scale 

When we talk about scale in loyalty, we’re talking about the ability to grow without losing impact. It means reaching more customers across more channels while still offering relevant and consistent value. Each business will define that differently, depending on its size, model, and audience.  

However, these five successful loyalty program examples demonstrate what scalable loyalty looks like in action, through various tactics, reward structures, and brand experiences. 

1. Starbucks Rewards Program: The Gold Standard of Mobile-First Loyalty

Starbucks has one of the most recognized loyalty programs in the world, and it didn’t happen overnight. The brand refined its approach over time by focusing on mobile-first convenience, meaningful rewards, and integrated experiences. 

• Model: Starbucks Rewards is a points-based system where members earn Stars for every dollar spent. Members can redeem these stars for food, drinks, upgrades, or customizations. Members also get birthday rewards, the ability to order ahead, free in-store refills, and exclusive mobile offers.

The program also features seamless gift card integration. Program members can add them to their account, pay with them in-store or in-app, and even send them to others.  

• Channels: The program is fully integrated across the mobile app, in-store point of sale (POS), email, and push notifications. Loyalty members can pay through the app, earn automatically, and receive personalized promotions based on purchase history. 
• Why It Works: They use real-time data to drive targeted offers and use app engagement as a key retention lever. Top key performance indicators (KPIs) include app usage, repeat visit frequency, average spend per transaction, and reward redemption rates. 
• What to Learn: The lesson for your brand is to make loyalty seamless to use, mobile-friendly, and deeply connected to the overall experience. Whether it's preordering, personalization, in-app payment, or digital gift cards, convenience drives engagement.

2. Panera Bread’s Sip Club: Subscription Meets Convenience

MyPanera is a loyalty platform that offers members a mix of free items, points, personalized benefits, and birthday rewards. One of its most attractive features is the Unlimited Sip Club, a subscription that provides members with exclusive access to unlimited self-serve drinks (including coffee, tea, and fountain beverages), surprise savings, $0 delivery fees, Saturday deals, and  extra birthday treats. 

• Model: The Sip Club operates on a monthly subscription basis. Members pay a flat fee and get unlimited drinks throughout the day, with no minimum spend required. This model layers on top of the existing MyPanera rewards program, which includes points for purchases, personalized offers, and milestone-based perks. 
• Channels: The program integrates across the Panera mobile app, website, in-store kiosks, and email. Members can join, manage their subscription, and redeem exclusive benefits digitally, whether they’re ordering ahead for pickup, dining in, or scheduling delivery. 
• Why It Works: The subscription-based loyalty programs can be challenging and require a strong commitment, but they encourage frequent visits and help build daily habits. For Panera, it increases foot traffic, boosts average ticket sizes, and strengthens customer loyalty. The blend of rewards, personalization, and convenience, especially appealing to busy value-driven guests, keeps members engaged and returning regularly.  
• What to Learn: Restaurants can draw inspiration from how Panera combines classic loyalty rewards with a subscription tier. Providing everyday value through unlimited or bundled benefits encourages occasional visitors to become regulars. The key is keeping the program accessible, integrating it smoothly across all channels, partnering with current brands like Pepsi, and communicating clearly both online and in-store. 

3. Casey’s Rewards: C-Store Loyalty Done Right

Casey’s offers a loyalty program that fits perfectly with the convenience store model. Loyal customers earn points on purchases both in-store and online. The program offers exclusive benefits and provides members with flexibility in redeeming rewards, including Casey’s Cash, fuel discounts, and donations to local schools. 

• Model: Casey’s Rewards uses a hybrid points-based system combined with a tiered rewards program. This approach rewards frequent shoppers while allowing them to choose the benefits that matter most to them.  
• Channels: The program operates across mobile apps, in-store POS and email marketing. This multichannel approach enables customers to engage wherever they shop. 
• Why It Works: The program’s success comes from its flexibility and relevance. By offering options to redeem loyalty points for fuel, store credit, or community support, Casey’s connects with the most loyal customers on multiple meaningful levels.  
• What to Learn: For c-store brands, the key lesson is to offer options and flexibility in rewards, make it easy to earn and redeem points both in-store and online, and utilize loyalty as a means to foster community connection. That personal touch strengthens guest relationships and drives repeat visits.

4. Sephora’s Beauty Insider: Personalization at Scale

Among retail loyalty programs, Sephora’s Beauty Insider stands out as one of the most effective. Members earn points with every purchase and receive birthday gifts, product samples, exclusive deals, access to special events, and complimentary shipping on select orders. The program allows customers to feel recognized and valued, no matter how often they shop.  

• Model: Sephora uses a tiered points-based loyalty program with three levels: Insider, VIB, and Rouge. The more members spend annually, the higher their tier and the more personalized the benefits become, from early access to new products to invitations to in-store experiences.
• Channels: The program runs seamlessly across Sephora’s app, website, in-store POS, email, and short message service (SMS). Members can track their points, receive personalized recommendations, and redeem rewards across all channels, creating a consistent and engaging experience.
• Why It Works: The power of Beauty Insider lies in its balance of scale and personalization. The program adapts based on spending behavior and preferences, and the reward options, from practical to aspirational, keep members engaged. 
• What to Learn: Take note of how Sephora personalizes rewards based on customer engagement levels and shopping habits. Creating clear tiers, offering choice in how customer use rewards, and integrating loyalty into both the digital and physical experience help turn loyalty into a long-term brand relationship. 

5. Chick-fil-A One: Loyalty Fueled by Guest Preferences

Chick-fil-A One members earn loyalty points on qualifying purchases, whether it’s a quick snack or a full meal. They can redeem points for menu items, from sides and desserts to full entrées, and enjoy birthday rewards along the way. As loyal customers order more frequently, they move up through status levels: Silver, Red, and finally Signature, unlocking additional perks at each tier. 

• Model: This is a tiered, points-based system that emphasizes frequency and personalization. Annual spending serves as the basis for the progression through each tier, with each level offering access to more tailored rewards, exclusive experiences, and recognition. 
• Channels: The program runs across Chick-fil-A’s mobile app, website, in-store POS, and personalized email communications. Members can place orders, track progress, and redeem offers through the app, creating a seamless and consistent experience. 
• Why It Works: Chick-fil-A One succeeds because it builds loyalty around guest preferences, not just purchase volume. By using customer loyalty software to track habits and tailor rewards, the brand delivers a highly relevant experience. The tiered system also introduces a sense of progression, which motivates members to stay active and engaged. 
• What to Learn: Take inspiration from how Chick-fil-A One uses loyalty to create higher customer value at scale. By combining data insights, tiered benefits, and seamless mobile integration, the program grows while maintaining a personal connection with customers.

2 Examples of Customer Loyalty Program Design That Converts 

The strongest restaurant loyalty programs have a few things in common: they offer relevant rewards, deliver a smooth experience, and feel personal to the customer. Below are two loyalty program design strategies you can apply, depending on your business goals. Whether you're trying to increase visits on slow days or improve first-time engagement, these proven approaches are effective in converting. 

1. Real-World Examples of High-Converting Offers

Brands like Dunkin’ and Casey’s use promotions like double points during off-peak hours to increase traffic when it's needed most. Others, like Chick-fil-A, target specific segments with limited-time menu items or regional offers tailored to local preferences. These promotions are straightforward yet effective because they’re timely, relevant, and grounded in real data.  

2. User Experience (UX) Best Practices from Top Loyalty Apps

Apps from brands like Starbucks and Panera lead the way in loyalty UX. They make it easy to join, track progress, and redeem rewards whether you're ordering ahead or browsing offers.  

Visual tier progress, real-time points tracking, and personalized calls to action (CTAs) all contribute to higher engagement and stronger program performance. In these cases, great UX is an integral part of the restaurant loyalty program strategy, not just an added layer. 

3 Examples of Customer Loyalty Schemes by Business Model 

Looking at loyalty through the lens of business models helps clarify what actually works. Elements like frequency, guest behavior, and the role of exclusive discounts all shape which strategies deliver better results.

The following examples illustrate how various types of businesses structure their loyalty schemes to align with their customers' engagement patterns.  

1. Fast Casual Chains: Frequency-Based Models

In fast casual dining, loyalty platforms revolve around daily routines. Brands focus on behaviors, such as lunch habits, app reorders, and spending patterns, using small but consistent incentives to foster long-term habits. 

The goal is to make earning feel effortless and predictable. An example of a customer loyalty program that does this well is Chipotle, which combines app-based tracking with personalized offers to turn everyday orders into a reliable source of engagement. 

2. Convenience Stores: Multibehavior Programs

Loyalty in the convenience store space often goes beyond repeat purchases. Programs reward customers across different behaviors, such as fuel fill-ups, snacks, drinks, or other quick buys, creating a sense of value across categories.

When managing everything through one app, the experience feels seamless.  

3. Premium Brands: Value-Based Loyalty vs. Discounts

For premium and lifestyle brands, a value-based loyalty program focuses less on discounts and more on creating a sense of belonging and exclusivity. Customers are often looking to gain access to exclusive rewards, early launches, or curated experiences rather than standard perks.

Paid loyalty programs or limited membership models work well here because the perceived value ties to identity.   

Membership program benefits can include priority customer service, which improves that sense of recognition further. They offer faster support, dedicated lines, or personalized assistance that aligns with the expectations of high-value members.

3 Tiered Loyalty Programs vs. Points-Based Programs 

Whether you use tier-based loyalty programs, a points-based structure, or a hybrid of both, the right approach depends on your business goals, customer behavior, and the pace at which your brand loyalty evolves.  

The best loyalty programs are those that align with what you offer, what your customers value, and the kind of long-term relationship you want to build. Here’s how each model works and when to use it:  

1. When to Use Tiered Loyalty (and When Not To)

Tiered loyalty programs are most effective when the goal is to encourage repeat customer behavior and build progression into the customer experience. By creating levels that unlock better rewards, businesses can motivate customers to spend more often or increase their order value.  

Tiered models require clear communication and a well-structured reward system. In cases where visit frequency is low or the customer base is largely composed of casual guests, the benefits tied to tiers may feel out of reach, reducing their impact on behavior. 

2. Maximizing a Points-Based Program

Points-based programs are the most widely used because they’re easy to understand and flexible across industries. For restaurants and c-stores, this model is effective when transaction volumes are high and customers return frequently. The key to success is maintaining a balanced program.  

Most loyalty programs rely on point systems because they are simple to understand and encourage customer engagement. This type of loyalty program design is especially effective at maximizing revenue when it aligns with real guest behavior.  

3. Hybrid Models That Balance the Two

Hybrid models combine the accessibility of points with the long-term engagement of tiers. This structure is ideal for businesses that serve both casual and guests. Loyalty program members can earn points on everyday purchases while unlocking additional benefits based on total spend or activity.  

Some brands also include subscription elements, offering paid upgrades or bundled perks. Although this adds complexity, it allows for more customization and strategic layering.

When implemented correctly, a hybrid model supports multiple business objectives simultaneously, from increasing frequency to growing average ticket size. 

Creative Loyalty Program Campaigns That Won Big 

Loyalty data is one of the most powerful tools when planning targeted campaigns. It empowers your brand to communicate directly with your target audience through rewards that are relevant, timely, and effective. The following campaigns demonstrate how the creative application of loyalty insights can influence customer behavior within the program.  

"Try New, Get Rewarded" Product Discovery Promotions 

Smashburger offers a strong example with the relaunch of its SmashClub Rewards program. Backed by loyalty data, the brand utilized a fry-focused limited-time offer to promote product discovery and reintroduce its loyalty platform, featuring improved analytics and targeting.

In 2020, this approach generated approximately $1.9 million in incremental sales, accounting for 6.5% of the brand’s total sales growth for the year.  

Targeted Reengagements with Bonus Points 

Automated campaigns based on recency and frequency allow brands to reengage customers with relevant incentives. Loyalty platforms can segment customers who haven’t visited in a set time frame and deliver personalized bonus point offers that encourage return visits.

These win-back strategies often outperform general promotions because they focus on behavior that's already measurable and actionable. 

Geofencing and Loyalty for Localized Offers 

Combining loyalty data with geotargeting enables brands to drive foot traffic in specific locations. For example, sending in-app “we miss you” messages or mobile reminders when a customer is near a store can bring back lapsed users in real time. These campaigns are particularly effective when paired with a reward or time-sensitive offer, as they tap into both convenience and proximity to motivate visits. 

2 Measurable Components That Define Loyalty Program Success 

Knowing how to measure customer loyalty is essential. Tracking performance over time helps identify what works and reveals where to adapt as the market shifts. Expectations, technology, and engagement patterns change fast, so measuring the right indicators ensures your loyalty plan stays aligned with your business goals. 

1. Engagement Metrics

While loyalty program sign-ups are a good starting point, they are only one part of the picture. Metrics like customer lifetime value, redemption rate, participation rate, and frequency lift give a much deeper view of performance.  

These indicators show whether your loyalty program is actually driving behavior and strengthening relationships. A growing list of members is positive, but ongoing engagement and reward usage are what determine real impact.

2. Revenue

The most effective way to assess financial return is by using a loyalty ROI model that multiplies average order value, visit frequency, and margin. This framework helps brands connect guest behavior to actual revenue results. It demonstrates how loyalty drives spending and customer retention.  

In this context, insights from our Annual Loyalty Report reveal how restaurant and c-store brands are building stronger customer connections through AI-powered personalization, gamification, and integrated omnichannel campaigns that put guests first. 

How to Apply These Examples to Your Brand 

All successful loyalty marketing strategies come down to giving guests a reason to join and stay. Your program should deliver value in the short term while setting expectations for long-term benefits.  

The key is to plan, test, measure, and evolve continually based on what works for your specific restaurant or c-store.  

Start with Goals, Not Features 

Before choosing what your program will offer, define what you’re trying to achieve. Do you want to increase average check size, drive more visits, promote specific menu items, or shift behavior in off-peak hours?

Once your goals are clear, you can identify which features support them—whether that means points, loyalty tiers, campaigns, or app functionality—and align your marketing strategy and messaging accordingly. 

Build for Guest Behavior, Not for Internal Silos 

Build loyalty around your guests’ experiences, not internal departments. Align offers across ordering, digital marketing, and loyalty platforms so that the messaging and value remain consistent no matter where the interaction happens.

For example, if a customer receives an email with a reward, that same reward should also be visible in the app and ready to use at checkout. 

A seamless experience increases participation, and that consistency should extend to restaurant social media as well. Platforms like Instagram or Facebook are effective for promoting rewards, app downloads, or limited-time offers (LTOs) through posts, stories, and in-app links that guide customers to act. 

Audit Your Loyalty Program Quarterly 

Reviewing loyalty program performance regularly helps keep it aligned with customer expectations and market changes. Use program data to identify what’s working, where drop-offs happen, and what new behavior you want to encourage. Quarterly audits also uncover larger trends that can inform pricing, operations, or even store-level planning. 

Tip: If you're looking to understand how loyalty programs work in the real world, and what actually helps build brand loyalty and retain customers, firms like Consumer Intelligence Research Partners offer valuable insights. 

Frequently Asked Questions About Loyalty Reward Programs

Every loyalty program is different because every brand has different goals, customer behavior, and operational realities. Below are a few common questions to help you think more strategically about how to build or refine your own approach. 

What is the best example of a loyalty program? 

There is no single “best” program. The most effective loyalty strategies are the ones aligned with your business goals and customer behavior. For some brands, like Starbucks or Panera, that means leveraging a mobile-first, points-based reward system. For others, like REI or Chick-fil-A, it could mean tiering access or offering value-based membership.  

What are the three Rs of loyalty programs? 

The three Rs refer to retention, rewards, and relevance. Retention is about finding ways to engage customers over time and keep them coming back.

Rewards are the tangible or perceived benefits they receive in return. Relevance means ensuring that rewards and experiences are timely, personal, and aligned with customer expectations.   

How do I create a loyalty program? 

Start with your goals and define what behavior your loyalty program encourages customers to take, whether it’s more frequent visits, larger orders, or trying new products, then choose the mechanics that support that. From there, align your marketing, technology, and operations to create a consistent and seamless customer journey. Test, measure, and be ready to evolve based on what your data shows. 

What's an example of a points-based customer loyalty program? 

The Starbucks rewards program is a well-established example of a points-based loyalty system. Customers earn Stars with every purchase, which are redeemable for drinks, food, or customizations. It’s fully integrated across mobile, in-store, and digital channels, making it easy for members to track progress, receive targeted offers, and access rewards wherever they interact with the brand.  

Smart Loyalty Leaders Study What Works and Execute Ruthlessly 

You can define great loyalty programs by how intentionally guests use the latest tools. The examples shared here are not just ideas; they’re real strategies applied by brands that grow by staying close to their customers and adapting with purpose. Now it’s your turn to take what works, shape it to your goals, and build a loyalty experience that drives results and future purchases. 

Want to learn how top brands build loyalty that lasts? Book a demo today to plan, automate, and personalize your loyalty strategy from day one.