Best Customer Loyalty Programs in India

Running a business is not an easy task; especially when it comes to grabbing the eyeballs of engaging new consumers towards your brand. Acquiring new customers is an activity that demands a lot of your time and attention; this completely depletes your energy making you completely inefficient to concentrate on other important areas of your business.

For entrepreneurs attaining new business is essential and a big challenge too; but what if we tell you there are other options/techniques to expand your business in less time with few resources. It seems to be a good idea, doesn’t it? Well, the option/technique to this ‘solution’ is none other than customer loyalty programs. Existing customers generate more revenue as compared to new customers.

According to Deloitte’s retail survey, “Businesses with loyalty programs are 88% more profitable on an average as compared to their competitors who do not.” Converting a new customer into a repeat customer does not happen overnight. This is the reason why customer loyalty programs should be considered.

A customer loyalty program is a well-structured marketing strategy that a brand implements to get customers (associated with the program) to continue to use their products or services for added benefits in return.

How to build a customer loyalty program

A great loyalty program goes beyond points and discounts — it builds emotional connections, encourages engagement, and inspires repeat behavior. Here's how you can craft a loyalty program that stands out and delivers real value.

1. Start with a standout name

Your program’s name sets the tone. A strong name should feel exciting, spark curiosity, and make customers want to learn more. It’s not just about “rewards” — it’s about identity, exclusivity, and belonging.

2. Tie it to a meaningful purpose

A loyalty program should feel authentic — not just a tactic to increase sales. Customers are more likely to join and stay engaged if the program connects to a deeper brand mission.

Make it about something bigger than transactions. Link your program to values like sustainability, empowerment, or personalization — depending on your brand’s ethos.

3. Reward more than just purchases

Customer loyalty isn’t built only at the checkout. Reward actions that reflect genuine engagement, such as:

• Referring a friend
• Sharing your product on social media
• Writing reviews
• Watching videos or completing product tutorials

These touchpoints reflect brand affinity and should be celebrated.

4. Offer reward variety

Not every customer values the same thing. Some may want discounts, while others prefer exclusive experiences, free subscriptions, or the chance to support a cause.

Offering options helps you connect with different customer motivations and makes your program more inclusive.

5. Assign real value to points

If you’re using a points system, make sure it’s clear what those points are worth. Transparency builds trust and gives customers a tangible goal to work toward.

Use visual tools like a rewards calculator or simple conversion rates (e.g., 100 points = ₹100) to simplify the math and reinforce value.

6. Incorporate non-monetary benefits based on shared values

Your most loyal customers likely share your values. Reflect those in your rewards.

This could include giving customers the option to:

• Convert points into donations
• Support social or environmental initiatives
• Participate in community-led projects

7. Promote enrollment everywhere

Don’t wait for customers to stumble upon your program. Actively promote it across:

• Product pages (e.g., “Earn 100 points with this purchase!”)
• Email campaigns
• Social media
• Checkout pop-ups
• In-app or on-site banners

8. Explore strategic partnerships

Collaborating with aligned brands can elevate your program’s appeal. It exposes your loyalty initiative to a wider audience while enhancing reward options.

For example, pair up with a fitness app, event platform, or eco-conscious brand to offer cross-benefits that appeal to both audiences.

9. Add a gamified twist

Gamification boosts engagement and gives users a sense of progress. Use badges, levels, leaderboards, or milestone unlocks to make loyalty feel like an achievement.

Make it fun, visual, and goal-oriented — so customers look forward to reaching the next level.

Examples of customer loyalty programs in India

Grabbing the attention of “new customers” and trying to convert them into “loyal customers” is a tedious, time consuming and expensive task. Instead simply having a word by mouth about your brand can attract new customers.

But how can this be done? How do you use positive reviews, eye-catchy tweets Instagram mentions and other social networking websites to boost the development of your business? It’s over here where the customer loyalty program proves to be useful.

Some of the best examples are highlighted below:

1. Point-based programs

Based on their spending capacity customers accrue points that they can redeem to get free products or services. It operates on a simple funda: “spend more to earn more.” Each time a purchase is made by a customer gets him/ her a certain amount of points based on the size of his/her purchase.

The point system should be simple and easy for customers to calculate and understand. For instance: Rs. 50 = 1 point.

2. Tiered program

This is an advanced point system. After collecting a certain number of points the customer is upgraded to the next tier and he will receive benefits of that tier. The more loyal customers stay to your brand they earn the greater the rewarding opportunity. This program is used in e-commerce and especially in the travel industry

3. Paid program

This program is simple to understand as customers pay a monthly or annual fee to join, be a part and avail of benefits of the VIP Member club. A sturdy customer base is required for this program to be effective.

4. The value-based program

Creating something creative and unique rather than just mere points can make the customer remember their brand. The value-based program is suitable for the e-commerce industry. If a loyalty program is structured around your customer’s values there is a high possibility of them becoming your brand loyalist.

5. The coalition program

Since loyalty programs are gaining importance; customers are looking for suppleness in rewards. Customer Loyalty programs can be created by partnering up with other businesses. This will let you build new relationships as well as give more prospects to customers.‍

6. Cash back program

These programs are easy to create, maintain and easy to understand. The proposition is simple to understand – ‘You get a certain amount against the X amount you spent.’ These programs are used to increase the transaction amounts and to reduce their churn rates.

7. Hybrid program

This program is a combination of more than one type of program. This program lets the customers earn points as well as get some attractive rewards too.

8. Healthcare card loyalty program

Health insurance usually covers hospitalization expenses. For the rest of medical requirements such as diagnostic tests, check-ups, consultation with the doctor etc. these expenses have to be borne by the customers. On the other hand, prices keep on increasing now and then which is of no help either.

This leaves a gap between what benefits the insurer offers and what expenses the customer bears on healthcare. Trying to bridge this gap insurance companies are offering healthcare discount cards which is a type of loyalty card. Customers pay a membership fee to which the insurance company offers them a card which they can use to avail 30 to 35% discounts benefit on hospitalization and non-hospitalisation like check-ups, diagnostic tests, medicines etc. related expenses.

9. Stamp card and mobile app loyalty program

It is an old and well-known loyalty program. The basic idea behind it is to provide customer loyalty cards that can be stamped by the brand when they purchase certain services and products. This stamped card can be used by the customer as a reward to avail of free products or services of the same value. Customers can avail of points by placing an order through a mobile app too.

Build loyalty that grows with your brand

Customer loyalty programs have steadily gained traction across India in industries such as retail, travel, healthcare, telecom, and hospitality. However, while the presence of loyalty programs is widespread, their potential remains largely underutilized.

Many of these programs are still centered around basic mechanics like points, discounts, and vouchers. These models often lack emotional connection and personalized experiences that create long-term brand affinity.

The real challenge lies in bridging the gap between collecting customer data and transforming that data into meaningful, actionable insights. Without a structured approach and a well-organized database, most marketers are left struggling to measure impact or scale results effectively.

This is exactly where Loyalife transform the way you think about loyalty.

Loyalife is a complete loyalty innovation ecosystem designed for marketers who want to create more than just transactional relationships. You can go beyond generic offers and start designing experiences that are personal, intelligent, and built around your customers' values and behaviors.

Whether you are launching your very first program or revamping an outdated one, Loyalife empowers you to:

• Build flexible and intuitive loyalty journeys.
• Segment and reward your audience based on real behavior and preferences.
• Integrate seamlessly with your existing customer platforms.
• Track, analyze, and optimize in real time without guesswork.

Loyalty is not about handing out rewards. It is about making your customers feel like they belong. It is about showing up consistently, knowing what matters to them, and proving your value at every stage of their journey.