An experiential loyalty program goes beyond traditional points-based systems. Instead of merely earning points for transactions, customers receive unique and memorable experiences. These experiences can include exclusive access to events, personalised tailored experiences, or once-in-a-lifetime opportunities. The goal is to create lasting emotional connections with customers, enhancing their overall experience and fostering long-term loyalty.

Whilst in the current economic downturn many brands are prioritising delivering additional value over the short-term, experiential loyalty programs aim to create a memorable and engaging experience with the brand. That is, a lasting impression that goes simply beyond customers’ receiving ‘money off’ their next shop.

Here are 5 brands (in no particular order) who we think are some of the best examples when it comes to experiential and innovation in the loyalty space. Whilst each one we reference is unique, they all share a few things in common…
-    They realise the benefits of loyalty means admitting that not all customers are equal. When it comes to loyalty most brands inadvertently treat all customers as the same, providing them with products of equivalent value regardless of how much they spend or how long they’ve been customers.
-    Understand the economic benefit of a segmented approach in developing out a highly targeted loyalty strategy. Once they identify those most valuable customer segments, they work to create a highly emotional connection between the brand and these consumers. At the same time, it can save the company money by discouraging those customers who would prove to be less valuable to the brand (many of these loyalty programs also require a membership fee to join).
-    Recognise that a company’s most loyal customers are also its most profitable. With each additional year of a relationship, these customers become less costly to serve. Loyal customers become business builders: buying more, paying premium prices, and bringing in new customers through referrals.
-    Highlight the impact of offering unique experiences over transactional rewards. Through offering rewards linked to specific experiences and other services, they’re highly engaging and offer a clear point of differentiation in an already crowded loyalty market.
-    All programs sit on a wealth of customer data and have incredibly deep insights into customer behaviour (particularly pre and post purchase).
-    Recognise that rewards programs do not exist in a vacuum, rather they dovetail with a brand’s strategy and capabilities.
-    Financially, these are some of the most commercially successful loyalty programs in the world.

1. HARLEY DAVIDSON
Harley-Davidson Owners Group (H.O.G)

Harley-Davidson’s Harley Owners Group (H.O.G) is an exclusive worldwide club for Harley-Davidson owners and enthusiasts. There is only one rule to become a H.O.G member, the candidate must own a Harley-Davidson motorcycle. The program is built to promote not just a consumer product, but a lifestyle.

Established in 1983, the H.O.G program is sold not just as a loyalty program, but as a visionary initiative intended to unite motorcyclists with a common affinity for the Harley-Davidson brand’s heritage and a deep appreciation of motorcycle culture. It was born out of an understanding that the allure of Harley-Davidson extends beyond its products to encompass a lifestyle, a sense of freedom, and a desire for adventure that resonates deeply with its audience. 

The group was one of the first known examples in modern business of a tangible platform for customers to celebrate their sincere personal passion for a brand, and benefit accordingly. Today, it is considered one of the leading global company-led community building efforts with over one million members worldwide and 1400 member chapters around the world.

For $59 USD per year, members get access to services such as roadside assistance, organised rides, charity events, concerts and national rallies. Membership also provides access to exclusive H.O.G. merchandise, personalised vehicle identification and an exclusive yearly touring handbook with road maps. 

The program is setup to allow individuals to showcase their affiliation and commitment to the Harley-Davidson lifestyle. Everything it’s members and the brand does harnesses the camaraderie and the biker spirit, which builds advocacy.

2. MARRIOTT
Marriott Bonvoy Moments

Now the world’s largest hotel chain, the Moments program is considered one of the leaders in the experiential rewards space. The program is essentially a catalogue of experiential rewards, some offered at a fixed-price and others available for auction. 

Experiential loyalty programs aren’t anything new in the travel category, however what makes Moments unique is it is marketed as “unique money-can’t-buy experiences” across four distinct categories. Through their loyalty program, they have developed a truly creative approach to experiential loyalty with offers that can’t be found elsewhere.
-    Culinary: The opportunity to dine at a range of global Michelin-starred restaurants or participate in individual cooking classes with world-class chefs.
-    Entertainment: Access to a range of concerts (including private performances in your own luxury private suite) and even exclusive 1-on-1 meet and greets with artists.
-    Arts and lifestyles: Discover unique cultural experiences (painting classes with famous artists, private museum tours, a private scuba diving tour with Jean-Michel Cousteau or choreograph a custom Bellagio fountain show in Las Vegas) and indulge in wellness retreats.
-    Sports: Access to sporting events, coaching and exclusive 1-on-1’s with sporting legends. You can even play in a friendly match against Manchester United in the UK.

3. NEIMAN MARCUS
InCircle

When customers invest in premium products, they aren’t just purchasing items – they’re curating a lifestyle. And what better way to enhance that lifestyle than through exclusivity? VIP tiered rewards programs have emerged as a potent strategy in the luxury industry, allowing brands to create a sense of prestige and elevate customer engagement.

The InCircle loyalty program instantly transports Neiman Marcus customers into an elite circle. As they ascend through eight distinct tiers, they unlock a world of unique benefits. When members reach the top five circles, they gain entry to the InCircle Concierge. This network of seasoned professionals orchestrates premium experiences – whether it’s helping plan dream vacations for customers, securing tickets to sought-after events, or securing reservations at top-tier restaurants. These experiential rewards transcend mere products, demonstrating genuine care for customers’ well-being.

At the pinnacle of Neiman Marcus’ loyalty program lies the Chairman’s Circle. To attain this coveted status, customers must annually spend a staggering $600,000 USD. Yet, the journey itself becomes a rewarding pursuit. Chairman’s Circle members enjoy an incredible array of exclusive perks, from indulgent in-store dining and one-of-a-kind personalised excursions to a range of destinations around the world.

4.    SEPHORA
Beauty Insider

With 25 million members and counting, Sephora’s Beauty Insider loyalty program has some of the best customer loyalty in retail. This is thanks mainly to its flexible and creative benefits that cater specifically to customer interests (with a particular focus on non-transactional perks that appeal more to people’s emotions).

Makeup thrives on recommendations, trials, and world-of-mouth. Many consumers read reviews before committing to a new product (especially given the price tags associated with premium cosmetics). Sephora understands this and recognises the power of recommendations and referrals. 

Their Beauty Insider community provides a platform for customers to connect, share, and learn from both Sephora and other customers. Sephora’s Beauty Insider Community gives customers access to several different groups based on their beauty interests, live chats, and exclusive community meetups. Whether you’re a seasoned beauty aficionado or just starting out, the community offers valuable social proof through product recommendations, tutorials, and expert insights.

And Sephora doesn’t stop at product samples. They accelerate customers’ discoveries by offering expert advice. Imagine attending exclusive in-store makeovers, beauty meet-ups, and masterclasses. From mastering a basic skincare routine to perfecting particular make-up looks, these value-added rewards creative positive experiences that keep Sephora customers coming back for more.

In the world of beauty, Sephora isn’t just a brand – it’s an immersive journey where expertise meets community, and every customer feels like a VIP.

5.    THE NORTH FACE
XPLR Pass

The North Face recognises the value of experiential benefits in their loyalty program, and they’re created something remarkable – the XPLR Pass.

XPLR Pass members accumulate points in the traditional way – every purchase counts. But the North Face adds a dash of adventure. Earn points not only through transactions but also by attending exclusive brand events and checking in at specific locations (many of which are outdoor). It’s a blend of loyalty and exploration.

When it’s time to redeem rewards, XPLR Pass members can aim higher. Picture this: using your hard-earned points for unique and unforgettable travel experiences. Imagine a mountain climbing adventure in Nepal, a 50+ mile endurance challenge or exploring other breathtaking destinations (in some cases alongside North Face athletes). The North Face takes you beyond product – it’s about living the adventure. Members also can be involved in product testing (in field).

The North Face understands its customers’ passion for outdoor events and travel. By allowing point to unlock experiences, XPLR Pass creates a loyalty program that resonates with adventurers, explorers, and thrill-seekers alike.

Is your loyalty program in need of a refresh?