Loyalty programs are meant to break down Why is this a great example? Most people think of loyalty programs as an airline giving miles to frequent fliers, a hotel giving points toward a stay or a restaurant offering a. With these great loyalty rewards programs, you can earn free gift cards, cash back and other rewards when you shop at your favorite stores. A great choice for new loyalty programs, but tracking data and preventing fraud can be an issue. Because it provides enough value to frequent shoppers for them to feel like it's really benefitting them. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. In addition to earning miles, Virgin Atlantic's Flying Club allows members to earn tier points. Again, it boils down to fully understanding your customers' everyday lives and their purchase processes. Offer an opt-in freebie, discount, extra points, or some other incentive to entice site visitors to join your membership program. This includes not only with dollars, but referrals, repeat purchases, and even social media and public brand retention and advocacy among their communities, thus bringing in new customers. The Best Practices for the Greatest Success Follow these loyalty program best practices and you will set yourself up for a successful and beyond. Another premier example of a tiered program is Starbucks Rewards. The new year is the perfect time to give your existing loyalty program a bit more attention. When customers visit their site, the loyalty program is presented as a natural extension of the rest of their online experience, prompting customers to participate. Marketing continues to be of the highest creative quality. Use all communication channels available to carry this message. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. You want members to continue to have good will toward your organization. Same true for the Neiman Marcus program, with the added benefit of catalogs differing by redemption level. Companies can boost profits by almost percent by retaining just 5 percent more of their customers" - F.