In eCommerce, customer acquisition is just the start - real growth comes from retention. As acquisition costs rise, more DTC brands are turning to eCommerce loyalty programs to boost repeat purchases, increase lifetime value, and drive referrals.
This guide covers everything you need to build and scale a successful eCommerce loyalty program, covering types of loyalty programs, real-world DTC examples, top loyalty apps & more to inspire your next move.
What are eCommerce Loyalty Programs?
An eCommerce loyalty program rewards customers for repeat purchases and engagement, often using a points system. Customers earn rewards like discounts or exclusive perks, which boosts retention and lifetime value. These programs also offer valuable insights into customer behavior. They create a win-win: your customers feel appreciated, and your brand builds stronger, more profitable relationships.
How to Design an eCommerce Loyalty Program That Works
1. Set Clear Goals and Know Your Customers
Define success; whether it's increasing retention or driving referrals and use customer data to tailor rewards that motivate them, like discounts or exclusive offers.
2. Choose Effective Rewards
Design a program with valuable rewards, like points, tiered benefits, or cashback. Ensure the rewards are achievable and encourage repeat purchases, such as offering points for purchases, reviews, or referrals.
3. Make It Simple and Visible
Ensure earning and redeeming rewards are clear and easy. Promote your program across key touchpoints like product pages, checkout, and emails to keep it top-of-mind.
4. Track and Optimize
Promote the program and track performance metrics like redemption rates and repeat purchases. Leverage insights to refine and enhance the program for improved outcomes.
5. Evolve Based on Feedback
Regularly update your program to keep it fresh and relevant, introducing new rewards or seasonal offers to maintain customer engagement.
Types of eCommerce Loyalty Programs
There’s no one-size-fits-all solution; the best eCommerce loyalty program depends on your business goals, customer behavior, and product type. Here are the five most effective models you can use or combine for a bigger impact:
1. Points-Based Programs
This is the most common type of eCommerce loyalty program. Customers earn points for purchases or actions, which they can redeem for rewards like discounts or gifts.
Example: A beauty brand gives 10 points for every $1 spent. At 500 points, customers unlock a $10 discount.
2. Tiered or VIP Programs
These programs reward customers based on their spending or engagement, with higher tiers offering more valuable benefits like early product access, exclusive offers, complimentary gifts, or priority services.
Example: A coffee brand offers three membership levels: Starter, Enthusiast, and Connoisseur. Connoisseur members get perks like free tastings and early access to limited-edition blends.
This model motivates customers to increase spending and is ideal for businesses with premium or high-ticket products.
3. Cashback or Store Credit Programs
Instead of points, customers receive store credit or cashback after purchases, encouraging them to return for future purchases. Tools like Giftkart help Shopify merchants implement this style of rewards program seamlessly.
Example: Spend $100, get $10 in store credit to use on your next purchase, a simple, effective way to drive return visits.
This approach also tends to reduce cart abandonment and is ideal for high-volume or repeat-purchase products.
4. Paid Membership Loyalty
In this model, customers pay a subscription fee for exclusive benefits like free shipping, gifts, or private sales.
Example: A pet supply brand offers a $49/year VIP club with free shipping, birthday treats for pets, and 2x points on all purchases.
This is perfect for brands with loyal customers and higher average order values, delivering great ROI.
5. Referral-Integrated Loyalty Programs
These programs combine loyalty rewards with referrals, allowing customers to earn points for referring friends and receiving bonus rewards when their friends make a purchase.
Example: Refer a friend and get 100 points when they order. Your friend gets 10% off their first purchase.
This hybrid model boosts both acquisition and retention through a single system.
Each of the eCommerce loyalty program types can be tailored to your brand’s voice, customer preferences, and growth goals, especially when powered by flexible eCommerce loyalty program apps.
Top eCommerce Loyalty Program Apps
Choosing the right eCommerce loyalty program apps can make or break your strategy. Check out this curated list with use cases and pricing details:
Designed for large-scale retailers looking for omnichannel customer retention strategies for eCommerce
Provides advanced loyalty features with B2B and multi-location support
Enables unified reward systems across eCommerce, POS, and mobile apps
Includes social loyalty, referral programs, and in-depth analytics
Pricing: Custom enterprise pricing and implementation
Loyalty Programs by Top DTC Brands
Modern DTC brands are redefining customer retention with loyalty programs that align tightly with their brand values, community focus, and lifestyle positioning. Go through what top DTC brands are doing in terms of loyalty.
1. Frank Body – Hotel Pink
About the Brand: This modern Australian DTC skincare brand is loved for its coffee scrubs and bold tone. Loyalty Overview: “Hotel Pink” turns a typical points program into an engaging, gamified loyalty experience.
How it Works: Earn “Pink Points” from purchases, reviews, social media, and referrals.
Tiers: Lobby to Penthouse, with better perks and higher referral value at each stage
Why It Works: This is a stellar customer retention strategy, keeping customers engaged well beyond checkout.
2. Pela – The Pela Collective
About the Brand: Pela makes eco-friendly phone cases and accessories and is laser-focused on sustainability and impact. Loyalty Overview: “The Pela Collective” is a paid loyalty program that rewards eco-minded shoppers generously.
Member Benefits:
30% lifetime discount
$5 monthly store credit
Early product access
Free returns and VIP support
Environmental contributions with every sale
Loyalty Strategy: This is a prime example of customer retention in eCommerce, members stay loyal for both the perks and the purpose.
3. Pura Vida – Shore Club
About the Brand: Pura Vida, known for its handmade bracelets and beachy vibe, supports artisans worldwide and sells through a strong DTC model. Loyalty Overview: Their "Shore Club" is a loyalty program driven by “Shore Dollars.”
Points System: Earn 1–2 Shore Dollars per $1 based on spend tier.
Tiers: #PVInsider to #PVA-Lister, each level brings faster earnings, early drops, and exclusive discounts
Redemption: Redeem points for discounts ($5 to $50 off).
Retention Tactic: The combo of frequent drops, limited editions, and early access encourages repeat purchases and builds brand loyalty.
4. TOMS – TOMS Rewards
About the Brand: TOMS is a globally recognized footwear brand that pioneered the One-for-One model, donating a pair of shoes for every pair sold. Loyalty Overview: TOMS Rewards takes the brand’s giving-back DNA into the world of loyalty.
How it Works: Members earn points on purchases and engagements like signups and birthdays.
Redemption Options:
Traditional rewards (e.g., $10 off for 100 points)
Or donate points to grassroots charities through the platform, turning points into purpose
Tiers: Good → Gooder → Goodest – each level increases point-earning speed (up to 1.5x)
Extra Perks: Free shipping at low spend thresholds, early access to new drops, exclusive offers, and “Give 20%, Get 20%” referral bonuses.
Why It Works: This isn’t just a loyalty program; it’s a value-aligned system that creates emotional brand loyalty. Customers are empowered to do good through their purchases, reinforcing their connection to TOMS' mission.
5. Girlfriend Collective – ReGirlfriend
About the Brand: Girlfriend Collective creates sustainable activewear with a passionate following, known for transparency and eco ethics. Loyalty Overview: Instead of points, Girlfriend runs ReGirlfriend, a circular loyalty initiative rooted in recycling and sustainability.
How it Works:
Send in old clothes (any brand)
Receive a $10 credit per Girlfriend item and a $5 for others
Free shipping label provided for easy returns
Redemption: Credits can be applied toward new Girlfriend purchases, encouraging repeat purchases and minimizing waste.
Why It Stands Out: ReGirlfriend builds brand loyalty through shared values. Customers are not just buying, they’re participating in a sustainable ecosystem. A smart eCommerce retention strategy for values-first shoppers.
6. The North Face – XPLR Pass
About the Brand: A legacy outdoor brand, The North Face equips adventurers and champions environmental responsibility. Loyalty Overview: XPLR Pass (Explorer Pass) is an experience-focused DTC loyaltyprogram that blends purchases with lifestyle engagement.
How it Works: Earn 1 point per $1 spent, but also collect bonus points by:
Checking in at national parks or monuments using their app
Visiting stores (monthly check-ins)
Bring reusable bags for shopping
Redemption: 100 points = $10 off.
Extras: Birthday discounts, field test opportunities, invite-only events, and a gear trade-in program (swap used gear for gift cards).
What Makes It Unique: XPLR Pass goes beyond transactional rewards; it encourages customers to live the brand, making it a standout loyalty strategy for adventure-driven communities.
7. Patagonia – Worn Wear
About the Brand: Patagonia is the gold standard in environmental commitment. Its products and mission center on reducing consumption and promoting repair over replacement. Loyalty Overview: Worn Wear is a loyalty-driving program that incentivizes trade-ins and repairs, not through points, but through sustainability.
How it Works:
Customers trade in used Patagonia items for store credit
Credit is used toward new or used Patagonia gear
Includes low-cost or free gear repairs
Why It Works: Worn Wear turns product longevity into a customer retention strategy. It strengthens brand loyalty by helping customers extend the life of their gear while staying in the Patagonia ecosystem.
Bonus: Practical eCommerce Loyalty Program Ideas
A successful eCommerce loyalty program doesn’t need to be complex, it just needs to offer value and be easy to join. These actionable eCommerce loyalty program ideas can help boost customer loyalty, engagement, and repeat sales.
Double Points on First Purchase
Give new customers a strong incentive to return. For example, a skincare brand might offer 2x points on a customer’s first order to kickstart their rewards journey in the eCommerce loyalty program and encourage early retention.
Points for leaving a product review
Encouraging reviews not only improves social proof but also deepens post-purchase engagement. Offering 50 loyalty points for a verified review is a great way to drive UGC and trust within your eCommerce loyalty program.
Rewards for sharing UGC on social media
Boost visibility and community engagement by rewarding customers for tagging your brand or posting photos with your products. It’s a smart way to blend rewards program tactics with content marketing.
Birthday or anniversary rewards
Sending surprise points or a discount code on a customer's birthday builds an emotional connection. This is one of the most personal and low-cost customer retention strategies within an eCommerce loyalty program.
Unlockable perks after hitting certain spend thresholds
Reward customers with free gifts, exclusive content, or early access once they’ve spent a specific amount, reinforcing the value of loyalty while subtly increasing average order value.
Exclusive member-only drops and early sale access
Build excitement and exclusivity with surprise rewards or limited-access products just for your most engaged members. This works especially well in fashion, beauty, or lifestyle verticals and can strengthen your eCommerce loyalty program offering.
Many brands also gamify their eCommerce loyalty program to make the experience more interactive, using features like spin-to-win wheels, referral leaderboards, or points streaks to keep the engagement high.
Why Create eCommerce Loyalty Programs?
Here are some key benefits of loyalty programs for eCommerce brands:
1. Higher Repeat Purchase Rates
Shoppers are more likely to return when they know their actions earn points, perks, or rewards, creating a habit of coming back.
2. Increased Customer Lifetime Value (CLV)
When customers feel valued and rewarded through your eCommerce loyalty program, they stay longer and spend more over time, increasing the total revenue you generate per customer.
3. Better Personalization Through First-Party Data
Loyalty programs track purchases and engagement, giving you accurate data to personalize emails, offers, and product recommendations.
4. Enhanced Customer Loyalty and Advocacy
Consistent rewards deepen trust and encourage customers to share your brand with others, organically boosting your reputation.
5. Cost-Effective Growth via Referrals and UGC
Offering points for referrals, reviews, and social shares through your eCommerce loyalty program turns your existing customer base into a scalable marketing channel.
6. Boosted Average Order Value (AOV)
Reward thresholds (e.g., “Spend $50, get 50 bonus points”) motivate shoppers to increase their basket size to unlock better value.
7. Stronger Emotional Connection
When your rewards program reflects your brand’s mission, like sustainability or exclusivity, your eCommerce loyalty program becomes a brand love driver, not just a discount engine
8. Reduced Churn
Regular engagement through point updates, exclusive offers, and redemption reminders keeps your brand top-of-mind and reduces customer drop-off.
Conclusion
eCommerce loyalty programs are no longer optional for growth-minded DTC brands; they're essential. These programs are key to boosting retention and driving repeat sales. By setting clear goals, understanding your customers, and offering meaningful rewards, you can create a program that fosters loyalty and increases customer lifetime value. With the right apps and ongoing optimization, your program will continue to engage customers, build stronger relationships, and support long-term growth.
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Neetika M
Neetika is the founder of Skai Lama. Passionate about building SaaS, Product Development, and Marketing, she talks about eCommerce Growth, Product Bundling, Gifting, Retention, and Shopify.
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