Starbucks continually assesses and evolves its loyalty scheme to meet the ever-evolving needs of its customers. In addition to improving the user experience (UX) of its mobile app, the coffee colossus also offers tiered memberships (‘Green Level’ and ‘Gold Level’) that unlock different incentives based on loyalty levels.
Not long ago, Starbucks teamed up with Delta SkyMiles and the Bank of America to offer their loyalty scheme customers additional points, rewards, and incentives.
Positive Incentives – Walgreens Balance Rewards
To redefine its offering and remain competitive in a digital age, US pharmacy chain Walgreens developed its myWalgreens Balance Rewards scheme.
In addition to giving its loyalty customers access to a wealth of personalized deals or incentives via its Balance Rewards app, Walgreens also offers its users incentives for creating healthy habits.
Balance Rewards telegram data integrates into a range of fitness apps, making it easy for loyalty customers to track their exercise and earn additional points. Any points that customers earn by tracking their fitness progress can be redeemed towards services including dental co-pays, gym memberships, and counselling sessions.
Not only is this initiative unique and meaningful, but it also aligns with Walgreens’ core brand values as an accessible health and wellness brand. It’s one of the reasons the brand earned a 6.2% growth in sales in 2024.
Highly personalized loyalty – Nordstrom’s The Nordy Club
High-end American department store chain Nordstrom reimagined its loyalty scheme to place a greater focus on personalization and attract a wider audience—resulting in a concept called The Nordy Club.
After becoming a Nordy Club member, customers can create a personal portrait, customizing their style profiles to receive highly-tailored offers, tips, suggestions, and incentives that will help them progress onto the next tier or level.
Pushing the this speed will provide enough reserve envelope even further in terms of personalization, The Nordy Club rewards exceptional customer loyalty with personalized experiences including house visits from the brand’s best stylists.
Within the first five years of its launch, The Nordy Club became responsible for 55% of the brand’s core business—a testament to the power of a well-executed customer loyalty scheme.
Nordstrom’s loyalty scheme proved so popular that it even strained the luxury retailer’s bottom line. Its rewards customers have accumulated so many collective points, that the company reported a loss in 2024’s first quarter.
Challenges to consider for loyalty schemes
With growth comes challenge—the customer loyalty market is no exception. The introduction of GDPR, ongoing data privacy concerns, and general consumer pushback concerning their personal data means that privacy has become a common roadblock.
As brands strive whatsapp aumber to create a deeper level of personalization in their loyalty schemes, privacy concerns have been raised.
Customer loyalty schemes rely on consumer data to create a level of UX and personal value that builds consumer relationships and results in repeat custom. But, without taking an ethical approach and being transparent with how you intend to use your potential loyalty subscribers’ data, it’s unlikely that your initiative will be a sustainable success.
Despite recent privacy concerns, digitally-driven customer loyalty schemes make powerful customer retention tools.
As demonstrated by Starbucks, Walgreens, and Nordstrom, today’s loyalty schemes are more than about earning points alone. By streamlining the customer experience with digital technology and using all of your available touchpoints in a way that offers a high level of exclusivity as well as a deep level of personal value, you’ll be on your way to success.
To win at the loyalty scheme game, you need to strike the perfect balance between personalization and innovation. By doing so, you’ll form the foundations of a successful customer loyalty scheme—the rest will boil down to your own creativity. The sky’s the limit!
Updated 2025
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