6 Case studies of successful Loyalty Program

How do successful online stores keep customers coming back in such a crowded market?

A loyalty program is one of the most effective ways to boost retention and secure recurring revenue, and Magento 2 even includes a basic reward points feature to support this. But not every program succeeds; without clear goals and smart execution, loyalty efforts often fall flat.

To inspire your Magento 2 strategy, let’s look at three latest real-world case studies of brands in 2025 that turned reward programs into powerful engines of customer engagement and long-term growth.

Case Study Loyalty Program 1: Chipotle U Rewards 2025 connects with college students

How it works

Chipotle - a popular Mexican Grill restaurant chain in America - has launched Chipotle U Rewards, an exclusive loyalty program designed specifically for college students. To join, students validate their enrollment through ID.me, and instantly receive 1,000 bonus points. From there, they earn 12 points per $1 spent, a 20% faster rate than standard members—and get access to surprise “free food drops” tied to campus milestones like finals or graduation.

Why it’s noticeable

Though it has been launched in August 2025, it is one of the most noticeable customer loyalty program example:

• Targeted to Gen Z: It’s the first national brand loyalty program created just for college students—lined up with their lifestyle and spending behavior.
• High perceived value, fast rewards: Starting with 1,000 points and a 20% faster earning rate helps students hit free food faster—a compelling, tangible benefit.
• Campus culture integration: Launching alongside a co-branded “dorm décor” collection via Urban Outfitters turns Chipotle into part of students’ identity and environment.

What Magento 2 store can learn from

• Tailor programs to groups (e.g., students, new parents, professionals) to make rewards feel more relevant and exclusive.
• Offer instant bonuses and accelerated earning rates to show immediate value and drive early engagement.
• Use lifestyle-aligned merch or co-branded offerings to make your brand part of your customers’ daily life.
• Show urgency and exclusivity with drops and milestone-linked rewards (e.g., “during finals week only”) to create excitement and increase loyalty participation.

Case Study 2: Alaska Airlines Atmos Rewards: Loyalty is redefined

How it works

Alaska Airlines combined its popular Mileage Plan with Hawaiian Airlines’ HawaiianMiles into a single, streamlined loyalty program case study: Atmos Rewards, offering unmatched flexibility and simplicity. Members can choose how to earn points: count by miles flown (legacy), dollars spent, or segments flown (e.g. flat 500 points per short flight).

Points and status metrics are now separated—reward points for redemptions, and “status points” for tier progression (Silver, Gold, Platinum, Titanium).

The program also launched a new premium credit card (Atmos Rewards Summit Visa Infinite), featuring perks like Global Companion Awards, lounge passes, increased point-earning rates, and points pooling.

Looking ahead, Atmos Rewards will introduce free Starlink Wi‑Fi for members (starting 2026) and customizable “Atmos Communities” that deliver personalized perks like local benefits for Hawai‘i residents.

Why it’s noticeable

• Flexibility: Members can choose among points based on distance, spend, or flight count, making Atmos Rewards the first U.S. airline loyalty program offering this level of personalization
• Evolved program design: By merging two established programs into one, Atmos Rewards maintains legacy value while launching with forward-thinking functionality and no changes to point value or expiration.
• Modern, premium appeal: The new credit card includes exclusive benefits like companion awards, lounge access, and accelerated status earning that add tangible value for frequent flyers.
• Experiential enhancements: Upgrading the loyalty experience with future Starlink Wi‑Fi access and tailored perks through Atmos Communities gives Atmos Rewards a modern, lifestyle-first reputation.

Lessons for Magento 2 stores

• Offer customers flexible earning paths (e.g., points for spend, purchase count, or behavior) so they can optimize based on their shopping habits.
• Preserve existing loyalty benefits during migrations or system updates.
• Launch premium tiers or access along with exclusive rewards (e.g. fast-track status or access to VIP features - using reward points and membership rules).
• Add experiential or tech-driven benefits (like free Wi-Fi or access to member-only events) to make your customers loyalty program feel modern, relevant, and high-touch.

Case Study 3: Starbucks encourages repeat purchases

How Starbucks Rewards program works

Starbucks is a globally recognized coffeehouse chain with thousands of stores in over 80 countries, serving millions of customers daily. It is known for its premium coffee, beverages, and in-store experience.

Starbucks’ customer loyalty program Starbucks Rewards, lets customers earn “Stars” for every purchase made in-store or via the app. These Stars can be redeemed for free drinks, food items, or exclusive offers. There are only 3 main tiers: Welcome level, Green Level & Gold Level.

Starbucks often gathers information on customers’ habits and offers more relevant perks and freebies to meet customers’ needs with their rewards program. Moreover, their app brings precise details on how clients can earn reward points and redeem them. This helps the brand stay on top of customers’ minds.

The program has boosted repeat purchases and strengthened customer engagement.

Learn more: Starbucks Marketing Strategy

Why it succeeds

• Clear communication: The app and website explain exactly how to earn and redeem rewards.
• Flexible redemption: Customers can redeem stars at different thresholds (25 stars for a shot, 150 for a handcrafted drink, etc.).
• Seasonal engagement: Starbucks runs “Double Star Days” and surprise offers to keep the program exciting.
• Technology-driven: The mobile app centralizes payments, ordering, music, and gamified promotions.

What Magento 2 stores learn from this case study

• Use mobile-friendly reward tracking
• Offer tiered redemption levels (small perks + bigger goals)
• Gamify campaigns (double points days, birthday rewards)

Related post: Complete guide to building an effective loyalty program

Case Study 4: American Express builds a flexible rewards ecosystem

How AmEx Membership works

American Express (AmEx) is a multinational financial services company, well known for its credit cards and premium membership benefits. Its Membership Rewards Program lets cardholders earn points on every purchase, which can then be redeemed for travel, shopping, or financial perks.

AmEx reward points never expire, and customers have multiple redemption options: booking travel through AmEx Travel, transferring points to airline/hotel partners, paying with points at checkout (Amazon, Walmart), redeeming for gift cards, or covering card charges. This case study loyalty program ensures members see tangible value in every transaction.

Why it succeeds

• Partner ecosystem: AmEx collaborates with 200 retailers brands, hundreds of online retailers, and two Air Miles credit card partners, airlines, hotels, and retailers, giving customers versatile ways to use points (such as Air Canada, Emirates, British Airways, Air France/ KLM, Cathay Pacific, Singapore Airlines, Hilton Hotels & Resorts, etc.)
• Flexible redemption: Members can choose travel, shopping, or financial rewards, making points more valuable.
• Community feel: Through “AmEx Offers,” members enjoy exclusive promotions and bonus points, fostering a sense of belonging.

Lessons for Magento 2 stores

• Build partnerships with complementary brands or affiliates to expand redemption choices
• Provide multiple ways to spend points (discounts, gift cards, free shipping, or product-specific perks)
• Offer exclusive promotions for members to keep engagement high

Case Study 5: LoyaltyOne Air Miles drives engagement through partnerships

How Air Miles works

LoyaltyOne operates Air Miles, Canada’s largest coalition loyalty program. Members earn “miles” from purchases across more than 200 partners, including retailers, online stores, credit card providers, and service companies. These miles can be redeemed for travel, events, merchandise, or discounts at partner stores.

The program integrates everyday shopping into a broader coalition, making it easy for customers to accumulate rewards faster and see greater value.

Why it succeeds

• Coalition power: Hundreds of partners create a broad ecosystem, giving members many earning and redemption opportunities
• Tiered motivation: Customers see higher-level rewards they haven’t reached yet, motivating them to spend more to unlock them
• Personalization: LoyaltyOne uses transaction data to segment customers and tailor offers to their shopping behaviors

What Magento 2 stores should do

• Show customers visible progress toward the next tier or milestone to sustain engagement
• Use customer behavior data to deliver personalized offers and promotions
• Explore partnerships or affiliate models to add value beyond your own store

Case Study 6: Morrisons More gives loyalty points that extend beyond the supermarket

How Morrisons More works

The famous UK supermarket brand - Morrisons - revamped its loyalty program, Morrisons More, to let customers earn More Points not only in-store or online at Morrisons—but also when shopping at over 300 partnering brands like eBay, Just Eat, ASOS, Expedia, and more. Shoppers tap into this by logging into the More App or website, navigating to partner retailers, and completing purchases—then points are automatically added. After collecting 5,000 points, customers receive a £5 voucher (“More Fiver”) to redeem at Morrisons.

Why it’s noticeable

• Extended value beyond the core brand: Customers earn rewards on a broad range of everyday spending, not just groceries.
• Seamless integration: The partnership points feature works digitally through the app or site, making it easy and mobile-friendly.
• Accelerated savings: More earning opportunities get customers to their voucher faster, increasing perceived value and loyalty.

What Magento 2 stores should do

• Reward customers for shopping beyond your own catalog across partners or affiliates
• Enable digital-only reward flows to extend earning to multiple touchpoints
• Let customers reach reward thresholds faster via expanded earning opportunities
• Deliver unified reward value across channels

Related post: How to create a points-based reward system with Mageplaza Reward Points

Magento 2 reward points program: Common problems & solutions

Running a reward points program in Magento 2 can be challenging: many merchants face issues like low engagement, generic offers, or poor ROI. Below are the most common problems and practical solutions by Mageplaza to help you turn your customer loyalty program into a growth driver.

Final words

Running a reward program is absolutely a campaign that you should invest time, money, and effort in as their long-term advantages for your sustainable development cannot be counted. To gain success from this program you can consider some typical examples of three brands above.

Besides, if you are a newbie in this area, you can make use of support from Mageplaza Reward Points extension to complete your program. With several outstanding features from storing date to managing earning and spending rates, this extension will definitely not let you down.