Do you know the best-tiered loyalty programs can help you increase customer lifetime value, build trust, and boost sales? In this blog post, we’ll explore the top 9 best-tiered loyalty programs for e-commerce stores in 2024.

What Are Tiered Loyalty Programs?

Tiered loyalty programs are a customer engagement programs. Depending on how much customer interact with or spend with a company or brand, they will get different levels of rewards and perks.

Three stages of loyalty are often used:

• Bronze members are the first level. Customers usually have to spend or connect with it a certain amount of time to get it.
• Silver members get a little more in the way of awards and benefits,
• Gold members get the most special ones, like early access to new goods, personalized service, or special deals.

So, why does this work so well?

It’s like a fun game. People love a challenge and the feeling of winning. When they see themselves climbing the ranks and getting better rewards, they feel good and want to keep shopping. 

Program #1: Sephora’s Beauty Insider

A Newsweek survey of more than 4,000 U.S. reward program members found that Sephora’s Beauty Insider got an 8.08 rating. This program is one of the six best-tiered loyalty programs in the US health and beauty industry.

So, how does it work?

Customers can earn loyalty points for every dollar spent on Sephora products, both in-store and online. There are three levels: Insider, VIB, and Rouge.

As you can see in the image below, the higher members go, the cooler the rewards! Members can get free samples, birthday gifts, and even exclusive offers.

So, how are they successful?

First, we like the clarity of explaining the loyalty program structure in a table format like in the image above. 

Also, their loyalty program has tier-based rewards. For example, during the Holiday Savings event, Insider members get 10% off. Meanwhile, Rouge members get 20% off. As we said, people love the idea of getting something extra for their loyalty. Plus, the different levels make it exciting to try and reach the next one.

If you’re thinking about starting your loyalty program, you can learn a lot from Sephora. Make it fun, offer loyalty program tiers for different customer segments, and make it easy to understand. Your customers will love it!

Program #2: Starbucks Rewards

The next best-tiered loyalty program on our list is Starbucks Rewards. This program uses a star-based system where customers earn stars for every dollar spent on eligible purchases.

So, what things make them successful?

One of the best things is the Starbucks app. It’s super easy to use and lets member track their points, customize their orders, and even skip the line.

Based on the Manifest research, almost half of all Americans who use restaurant loyalty apps use the Starbucks app. It’s no surprise that Starbucks has won awards for its amazing loyalty program.

If you’re an e-commerce owner, take note. Focus on the customer experience by giving them unique experiences and easy loyalty program tracking point.

Program #3: Amazon Prime

The third best-tiered loyalty program on our list is Amazon Prime. Statista’s data show that when in 2024, there will be more than 180 million Amazon Prime members in the United States.

So, what things make them successful?

Amazon has a wide range of services, from online shopping to watching movies online. With Prime, you get super-fast shipping on almost everything you buy. You no longer have to wait for your packages. You can also use Prime Video and Prime Songs to watch movies and TV shows and listen to songs.

These are tiered loyalty program ideas for large e-commerce stores, especially when you have multiple platforms like Amazon. More than just deals, give your customers a package of perks. Customers will stay with you longer if you give them more value.

Program #4: Nike Membership

Nike Membership is a membership loyalty program that rewards athletes for their purchases and engagement with the brand. 

So, what things make them successful?

We know Nike as a sportswear brand, and Nike understands that their target audience is people who love to exercise. So, in their Membership program, Nike has provided benefits such as access to exclusive lessons from training experts in the Nike Run Club app.

Especially when you exercise with others, Nike understands that. So, when Nike says “Club,” they mean it. Even if members are running by themselves, Nike was with them. The Nike app connects with friends and other runners through experiences and challenges across the globe.

Even if you are a small business, you can still learn from Nike’s personalized marketing strategy and build your loyalty community. Don’t worry; you don’t have to be a global brand like Nike to do this; our guide to building your loyalty program community will show you how.

Program #5: REI Co-op Membership

Just like Amazon Prime. REI loyalists can buy a membership and get an annual 10% back* on all eligible purchases. Plus, there are more membership benefits for life—no renewal, no extra fees.

REI’s logo is “Pay $30 just once, enjoy forever. Membership lasts a lifetime.” No yearly subscription fees or annual dues—ever! Members get lifetime benefits, including an estimated 10% back on eligible purchases.

So, what things make them successful?

Other shops have crazy deals and sales, but REI stays true to its values. To get people to spend time outside instead of shopping, they even close their shops on Black Friday. Thus, one method that loyal fans might get savings from REI is via the membership program.

Also, similar to Nike, REI understands its customers. They offer exclusive events just for members so they can connect with other outdoor enthusiasts and learn new skills.

You can learn a lot from REI even if your store doesn’t sell outdoor gear. Try to set yourself apart from the competitors by giving your customers something unique. 

Program #6: Tarte Cosmetics – Tarte Heart Rewards

Tarte Heart Rewards is a tiered loyalty program designed to reward beauty enthusiasts with the Tarte Cosmetics brand. Like Sephora’s Beauty Insider, this program uses a point-based system where customers earn 10 points for every dollar spent on eligible products.

What makes Tarte Heart Rewards different?

Unlike other beauty loyalty programs, members can use their points right away to get discounts on their purchases. It’s like getting paid for makeup! This loyalty program gamification elements ideas for your store

Program #7: The North Face XPLR Pass Loyalty Program

XPLR Pass is The North Face’s free loyalty program. Members can earn points and rewards and receive free shipping on every purchase. 

Plus, members get early and exclusive access to limited-edition collections and collaborations, exclusive events, and so much more.

So, what things make them successful?

That is because it’s simple. People love getting rewarded for doing what they love. The discounts, early access, and free shipping are all things that customers really appreciate.

Even though the XPLR Pass might have a few more rules than REI programs, it’s still a great way to get more out of your shopping experience at The North Face. 

Program #8: Ulta Beauty’s Ultamate Rewards

One of the best-tiered loyalty programs in the cosmetics industry on this list is Ulta Beauty’s Rewards. Members earn points on every $1. 

Ulta Beauty also has three tiers, such as Sephora’s Beauty Insider; you can check the image below to learn more about the benefits for each level.

Their program’s success is like that of Sephora and Tarte Cosmetics, that we analyzed above.

Program #9: PetSmart’s Treats Program

PetSmart’s Treats Program is the points-based loyalty program that rewards you every time you shop in stores and online or donate to PetSmart Charities® in stores at the pin pad or online.

What makes PetSmart’s Treats Program so special?

It’s not just about rewards. It’s also about giving back to the community. By donating to PetSmart Charities, members are helping animals in need. This makes the program even more meaningful for pet lovers.

If you’re a business that cares about animals or the environment, you can learn a lot from PetSmart. Consider adding community activities to your loyalty program. Your customers will love it!

FAQ: Common questions about tiered loyalty programs

How do best-tiered loyalty programs benefit small e-commerce stores?

Tiered loyalty programs encourage customers to return and make repeat purchases as they feel motivated to reach higher tiers for better rewards. Also, they will get better perks for not only making purchases and taking action but also for referring others to you.

What’s the ideal number of tiers?

Like the 9 best-tiered loyalty programs we listed in this article, having 3 tiers would be ideal for your e-commerce store. If you have more than 3 tiers, members might feel “drowned” in accumulating points.

How do I measure the success of my loyalty program?

To measure the success of your loyalty program, tracking the performance of your tiered loyalty program. Our article “10 customer loyalty KPIs businesses should track” will help you understand better.

Can I integrate a tiered loyalty program with my existing e-commerce platform?

Absolutely! You can. Just choose a loyalty program software that works with your website. 

If you use Shopify, we recommend BON Loyalty. It’s like a one-stop shop for all your reward program needs. You can easily create a points system, set up different levels, offer cool rewards, and even build a special loyalty page for your website. 

What if my customers find it difficult to move up tiers?

To keep buyers from giving up, you should set reasonable goals for each level. When setting tier standards, think about things like how often and how much people usually buy. 

You should read our article “Tiered Loyalty Programs Explained” for more ideas.