Five loyalty programs with killer USPs

Behind the scenes it is a data game that can prompt the customer journey and reward repeat business. But for customers themselves, the modern loyalty program is taking engagement to a new level.

Today, successful loyalty programs still push the products and services that matter to customers, but this is paired with additional lifestyle perks, social causes and other touches.

CX Network rounds up five loyalty programs with killer unique selling points (USP) that are boosting brand appeal.

Sephora – Beauty Insider

Sephora impressed customers when it offered Beauty Insider members the ability to transform their points into donations to major charities and causes. According to Annex Cloud, 89 percent of Americans are willing to switch brands in order to support a cause. As a part of the Beauty Insider program, Sephora’s Charity Rewards allows donations of 500-1,500 points – the equivalent of US$10-$30 – to its featured charity. Since the donation concept was introduced Sephora’s featured charities have included NAACP (the National Association for the Advancement of Colored People); The Trevor Project, which is the world’s largest suicide prevention and crisis intervention organization for LGBTQ youth; and Project Glimmer, which aims to “inspire every girl to envision and realize an empowered future”.

Booking.com – become a “genius”

With three “genius” levels, online travel agent (OTA) Booking.com is a master of using the tiered reward system to boost engagement and sales. After all, customers desire the promise of exclusivity from the companies they buy from and in the highly fragmented global OTA market, every sale counts. Level one Genius rewards are applied for each new customer and give travelers a 10 percent discount at participating properties worldwide. Level two increases this to a maximum of 15 percent and adds free breakfast and upgrades, while level three offers discounts of up to 20 percent, along with free breakfast options, room upgrades and priority support.

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Diners Club International – glocal rewards for global Clubmembers

Created by Frank McNamara as an alternative way to pay, Diners Club International is a payment method that taps the customer desire for exclusivity and status while connecting organizations with high-worth customers. DCI offers Clubmembers perks for top restaurants, attractions, shops, airport lounges and other exclusive venues around the world, as well as car rental offers, shopping privileges and travel inspiration. Furthermore, Clubmember perks are tailored to local markets, providing a truly “glocal” experience for global citizens. As a result of its approach to spending and brand affinity, DCI today has a customer base of adventure seeking, high-spending individuals that it understands inside out.

Amtrak Guest Rewards – airline-style perks for train travel

Amtrak has taken the airline reward model and reworked it for train travel across the USA. This unique approach to rewarding train travel sees Amtrak award two points per dollar with additional earning opportunities for business and first-class travelers. It is also tiered with three status levels. Points can be redeemed to enhance the Amtrak experience, or to make bookings with various hotel chains and car rental companies, helping passengers to continue their journey.

MyMcDonald’s Rewards – points in your pocket

Launched in the UK in July 2022, MyMcDonald’s Rewards is the franchise F&B brand’s big step into the world of loyalty but there are no cards in sight. While loyalty was previously based on Happy Meal toys, brand affinity and, later, the McCafé Stamps rewards program, today is it in the diner’s pocket and available to redeem at kiosks, restaurants and drive throughs. Points are awarded to an app-based account for each pound spent, with a bonus 1,500 points awarded on sign-up and additional points offered on selected menu items. It also supports charities, with three causes listed online: Ronald McDonald House Charities, BBC Children in Need and FareShare.