T H E   H I S T O R Y A N D E V O L U T I O N
O F L O Y A L T Y P R O G R A M S
- L O Y E L A
W W W . L O Y E L A . C O M
T H E C O R E O F T H E B U S I N E S S :
R E T A I N T H E L O Y A L C U S T O M E R S W H O W I L L
R E T U R N I N T H E F U T U R E .
F R O M 1 8 T H C E N T U R Y T I L L T O D A Y   T H E Y
A R E C O M M O N P L A C E A N D A N I N T E G R A L
P A R T O F M A N Y B U S I N E S S E S ' S T R A T E G Y .
R E S U L T :  
L O Y A L T Y P R O G R A M S W E R E B O R N .
V I T A M I N F R E S H . N E T
=
1 . C O P P E R T O K E N S
H T T P S : / / W W W . W O O L L E Y A N D W A L L I S . C O . U K / L O T / ? S A L E = M A 1 9 1 0 1 6 & L O T = 1 8 4 & I D = 3 1 7 2 6 2
T H E E A R L I E S T K N O W N C O M M E R C I A L L O Y A L T Y P R O G R A M
A P P E A R E D A S E A R L Y A S T H E 1 8 T H C E N T U R Y .
I N 1 7 9 3 , S O M E U . S M E R C H A N T S B E G A N T O G I V E T H E I R C U S T O M E R S
C O P P E R T O K E N S T O R E D E E M I N F U T U R E P U R C H A S E S T O A T T R A C T
T H E M T O C O M E B A C K .
T H I S I D E A S O O N F L A M E D U P A N D C A U G H T L O T S O F S H O P K E E P E R S ’
E Y E S W H I C H L E D T O M A N Y O F T H E M I M P L E M E N T I N G T H I S K I N D O F
C O P P E R T O K E N L O Y A L T Y P R O G R A M S T O O F F E R T O T H E I R
C U S T O M E R S .
T H E S E P E O P L E W E R E P I O N E E R S A N D P A V E D T H E W A Y F O R M O D E R N
C O M P A N I E S T O I N N O V A T E A N D B R I N G V A L U E T O T H E I R O W N
B U S I N E S S .
Copper Tokens
P I C F R O M : H T T P : / / R E A L C O I N S D E A L E R . C O M / P R O D U C T / 1 1 2 - O L D - C A N A D A - C O P P E R - T O K E N S - C O I N S - O N E - B I G - L O T /
2 . T R A D I N G S T A M P S
P I C F R O M : H T T P : / / M Y A U C T I O N F I N D S . C O M / 2 0 1 0 / 0 6 / 0 9 / L I C K I N G - A N D - G L U I N G - S - H - G R E E N - S T A M P S /
I N 1 8 9 6 , S & H C O M P A N Y
S T A R T E D P R O V I D I N G G R E E N
S T A M P S T O V A R I O U S
B U S I N E S S E S T O U S E A S A
M E A N S T O O F F E R R E W A R D S T O
T H E I R L O Y A L C U S T O M E R S .
Trading Stamps
P I C F R O M : H T T P : / / W W W . T H E W E L L S T O N L O O P . C O M / T R A D I N G - S T A M P S
It once issued 3 times as many
stamps as U.S postal services
With these stamps, customers with
enough green stamps could
redeem products from S&H
redemption center.
This practice was quite popular until
mid-late 20th century.
P I C F R O M : H T T P : / / W W W . P A P E R G R E A T . C O M / 2 0 1 1 / 0 5 / S E L E C T I O N S - F R O M - 1 9 6 7 - T O P - V A L U E - S T A M P S . H T M L
L O Y E L A . C O M
P I C F R O M : H T T P S : / / W W W . M P R N E W S . O R G / S T O R Y / 2 0 0 6 / 1 1 / 2 8 / B E T T Y C R O C K E R
3 . B O X T O P S
D U R I N G E A R L Y 2 0 T H C E N T U R Y , M A N Y C O M P A N I E S T R I E D T O
I N T R O D U C E N E W W A Y S O F I M P L E M E N T I N G C U S T O M E R L O Y A L T Y
P R O G R A M S T O T H E M A R K E T .  
T H E C O U P O N P R I N T E D O N T H E P A C K A G E
A N I N D I V I D U A L L O Y A L T Y P R O G R A M T H A T B E T T Y C R O C K E R
S T A R T E D T O O F F E R T O I T S C U S T O M E R S I N 1 9 2 9 .
C O U L D B E R E D E E M E D F O R I T E M S T H A T W E R E L I S T E D O N
B E T T Y C R O C K E R ' S R E W A R D S C A T A L O G .
Box Tops
P I C F R O M : H T T P : / / W W W . E V E R Y D A Y S P R I N G F I E L D . C O M / E E H S P - B O X - T O P S - C O N T E S T - H E L P S - E A R N - C A S H - F O R - S C H O O L S /  
4 . F R E Q U E N T F L I E R S P R O G R A M S
P I C F R O M : H T T P S : / / W W W . A A . C O M  
Frequent Flier Programs
I N 1 9 8 1 A M E R I C A N A I R L I N E S I N T R O D U C E D T H E F I R S T F R E Q U E N T
F L I E R P R O G R A M , A A D V A N T A G E , T O L O Y A L C U S T O M E R S . I T
P R O V I D E D C U S T O M E R S W I T H B R A N D N E W E X P E R I E N C E S O N
B O A R D .
U N I T E D A I R L I N E S F O L L O W E D U P B Y I N T R O D U C I N G I T S O W N
L O Y A L T Y P R O G R A M , M I L E A G E P L U S .
T H I S T Y P E O F C U S T O M E R L O Y A L T Y P R O G R A M W A S S O O N A P P L I E D
I N M A N Y I N D U S T R I E S , S U C H A S H O T E L S , H O S P I T A L I T Y A N D C A R
R E N T A L I N D U S T R Y .
5 . C A R D - B A S E D P R O G R A M S
Card based programs has been popular and widely used
means of customer loyalty programs since 1990s. 
P I C F R O M : H T T P S : / / W W W . C O S T C O . C O M
T H E B E N E F I T S
Vitamin C+
T H E M E M B E R S H I P P R O G R A M , A T Y P E O F C A R D - B A S E D P R O G R A M . T H E
M O S T F A M O U S B U S I N E S S I M P L E M E N T I N G T H I S T Y P E O F P R O G R A M
W O U L D B E T H E A M E R I C A N W H O L E S A L E R , C O S T C O .
T H E L O Y A L C U S T O M E R S O F T H I S K I N D O F M E M B E R S H I P M E R C H A N T S
A R E N O T O N L Y L O O K I N G F O R D I S C O U N T S , B U T A L S O S P E C I A L D E A L S
A N D G O O D C U S T O M E R S E R V I C E A N D A F T E R - S A L E S S E R V I C E .
T H I S T Y P E O F C U S T O M E R L O Y A L T Y P R O G R A M C A N S T R O N G L Y T I E U P
T H E R E L A T I O N S H I P S B E T W E E N T H E M E R C H A N T S A N D T H E
C U S T O M E R S .
Card- Based Programs
P I C F R O M : H T T P : / / W W W . R O B C O N . C O M / P R O J E C T / C O S T C O - W H O L E S A L E - N E W - B E R L I N - W I /
6 . C U S T O M I Z E D L O Y A L T Y
P R O G R A M S V I A M O B I L E A P P S
The rise of technology has enabled merchants to provide better customer experience
in different industries and to develop their loyalty programs in more innovative ways. 
M E R C H A N T S S H I F T T H E C U S T O M E R L O Y A L T Y
P R O G R A M S F R O M R E W A R D S T A M P S , P L A S T I C
C A R D S , P A P E R C A R D S T O
M O B I L E A P P S .
 Every S$1 spend= 1 star as a reward.
With enough stars, customer can
redeem free drinks in the store.
Frequently sends promotions via
Starbucks' app to members to build up
its loyal customers.
G R A B P O I N T S
S T A R B U C K S ' S T A R S
Mobile Apps Loyalty Programs
C U S T O M E R S O N L Y N E E D A S M A R T P H O N E T O D O W N L O A D
T H E A P P S O F T H E C U S T O M E R L O Y A L T Y P R O G R A M S .
M E R C H A N T S C A N A L S O P R O A C T I V E L Y R E A C H O U T T O T H E
C U S T O M E R S W H O A L R E A D Y H A V E T H E A P P S T O E N G A G E
W I T H T H E M T O M A X I M I Z E P R O F I T S A N D T O M A K E
C U S T O M E R S B U I L D U P L O Y A L T Y .
18TH CENTURY
21ST CENTURY
I N 1 8 T H C E N T U R Y , S H O P K E E P E R S O N L Y F O C U S O N
B U I L D I N G U P T H E R E L A T I O N S H I P W I T H C U S T O M E R S A N D
R E W A R D I N G T H O S E W H O S P E N D I N T H E I R S T O R E S T O
M A K E T H E M C O M E B A C K A G A I N .
N O W I N 2 1 S T C E N T U R Y , C U S T O M E R L O Y A L T Y P R O G R A M S
B E C O M E M O R E S O P H I S T I C A T E D A N D C O M P R E H E N S I V E . T H E
R E W A R D S A R E M O R E T A I L O R E D A N D C U S T O M I Z E D T O M A K E
T H E R E W A R D S M O R E A T T R A C T I V E T O A P P E A L M O R E
C U S T O M E R S .
T h e f u t u r e o f c u s t o m e r l o y a l t y
W W W . L O Y E L A . C O M

The history and evolution of loyalty programs

  • 1.
    T H E  H I S T O R Y A N D E V O L U T I O N O F L O Y A L T Y P R O G R A M S - L O Y E L A W W W . L O Y E L A . C O M
  • 2.
    T H EC O R E O F T H E B U S I N E S S : R E T A I N T H E L O Y A L C U S T O M E R S W H O W I L L R E T U R N I N T H E F U T U R E . F R O M 1 8 T H C E N T U R Y T I L L T O D A Y   T H E Y A R E C O M M O N P L A C E A N D A N I N T E G R A L P A R T O F M A N Y B U S I N E S S E S ' S T R A T E G Y . R E S U L T :   L O Y A L T Y P R O G R A M S W E R E B O R N .
  • 3.
    V I TA M I N F R E S H . N E T = 1 . C O P P E R T O K E N S H T T P S : / / W W W . W O O L L E Y A N D W A L L I S . C O . U K / L O T / ? S A L E = M A 1 9 1 0 1 6 & L O T = 1 8 4 & I D = 3 1 7 2 6 2 T H E E A R L I E S T K N O W N C O M M E R C I A L L O Y A L T Y P R O G R A M A P P E A R E D A S E A R L Y A S T H E 1 8 T H C E N T U R Y .
  • 4.
    I N 17 9 3 , S O M E U . S M E R C H A N T S B E G A N T O G I V E T H E I R C U S T O M E R S C O P P E R T O K E N S T O R E D E E M I N F U T U R E P U R C H A S E S T O A T T R A C T T H E M T O C O M E B A C K . T H I S I D E A S O O N F L A M E D U P A N D C A U G H T L O T S O F S H O P K E E P E R S ’ E Y E S W H I C H L E D T O M A N Y O F T H E M I M P L E M E N T I N G T H I S K I N D O F C O P P E R T O K E N L O Y A L T Y P R O G R A M S T O O F F E R T O T H E I R C U S T O M E R S . T H E S E P E O P L E W E R E P I O N E E R S A N D P A V E D T H E W A Y F O R M O D E R N C O M P A N I E S T O I N N O V A T E A N D B R I N G V A L U E T O T H E I R O W N B U S I N E S S . Copper Tokens P I C F R O M : H T T P : / / R E A L C O I N S D E A L E R . C O M / P R O D U C T / 1 1 2 - O L D - C A N A D A - C O P P E R - T O K E N S - C O I N S - O N E - B I G - L O T /
  • 5.
    2 . TR A D I N G S T A M P S P I C F R O M : H T T P : / / M Y A U C T I O N F I N D S . C O M / 2 0 1 0 / 0 6 / 0 9 / L I C K I N G - A N D - G L U I N G - S - H - G R E E N - S T A M P S /
  • 6.
    I N 18 9 6 , S & H C O M P A N Y S T A R T E D P R O V I D I N G G R E E N S T A M P S T O V A R I O U S B U S I N E S S E S T O U S E A S A M E A N S T O O F F E R R E W A R D S T O T H E I R L O Y A L C U S T O M E R S . Trading Stamps P I C F R O M : H T T P : / / W W W . T H E W E L L S T O N L O O P . C O M / T R A D I N G - S T A M P S
  • 7.
    It once issued3 times as many stamps as U.S postal services With these stamps, customers with enough green stamps could redeem products from S&H redemption center. This practice was quite popular until mid-late 20th century. P I C F R O M : H T T P : / / W W W . P A P E R G R E A T . C O M / 2 0 1 1 / 0 5 / S E L E C T I O N S - F R O M - 1 9 6 7 - T O P - V A L U E - S T A M P S . H T M L
  • 8.
    L O YE L A . C O M P I C F R O M : H T T P S : / / W W W . M P R N E W S . O R G / S T O R Y / 2 0 0 6 / 1 1 / 2 8 / B E T T Y C R O C K E R 3 . B O X T O P S D U R I N G E A R L Y 2 0 T H C E N T U R Y , M A N Y C O M P A N I E S T R I E D T O I N T R O D U C E N E W W A Y S O F I M P L E M E N T I N G C U S T O M E R L O Y A L T Y P R O G R A M S T O T H E M A R K E T .  
  • 9.
    T H EC O U P O N P R I N T E D O N T H E P A C K A G E A N I N D I V I D U A L L O Y A L T Y P R O G R A M T H A T B E T T Y C R O C K E R S T A R T E D T O O F F E R T O I T S C U S T O M E R S I N 1 9 2 9 . C O U L D B E R E D E E M E D F O R I T E M S T H A T W E R E L I S T E D O N B E T T Y C R O C K E R ' S R E W A R D S C A T A L O G . Box Tops P I C F R O M : H T T P : / / W W W . E V E R Y D A Y S P R I N G F I E L D . C O M / E E H S P - B O X - T O P S - C O N T E S T - H E L P S - E A R N - C A S H - F O R - S C H O O L S /  
  • 10.
    4 . FR E Q U E N T F L I E R S P R O G R A M S P I C F R O M : H T T P S : / / W W W . A A . C O M  
  • 11.
    Frequent Flier Programs IN 1 9 8 1 A M E R I C A N A I R L I N E S I N T R O D U C E D T H E F I R S T F R E Q U E N T F L I E R P R O G R A M , A A D V A N T A G E , T O L O Y A L C U S T O M E R S . I T P R O V I D E D C U S T O M E R S W I T H B R A N D N E W E X P E R I E N C E S O N B O A R D . U N I T E D A I R L I N E S F O L L O W E D U P B Y I N T R O D U C I N G I T S O W N L O Y A L T Y P R O G R A M , M I L E A G E P L U S . T H I S T Y P E O F C U S T O M E R L O Y A L T Y P R O G R A M W A S S O O N A P P L I E D I N M A N Y I N D U S T R I E S , S U C H A S H O T E L S , H O S P I T A L I T Y A N D C A R R E N T A L I N D U S T R Y .
  • 12.
    5 . CA R D - B A S E D P R O G R A M S Card based programs has been popular and widely used means of customer loyalty programs since 1990s.  P I C F R O M : H T T P S : / / W W W . C O S T C O . C O M T H E B E N E F I T S Vitamin C+
  • 13.
    T H EM E M B E R S H I P P R O G R A M , A T Y P E O F C A R D - B A S E D P R O G R A M . T H E M O S T F A M O U S B U S I N E S S I M P L E M E N T I N G T H I S T Y P E O F P R O G R A M W O U L D B E T H E A M E R I C A N W H O L E S A L E R , C O S T C O . T H E L O Y A L C U S T O M E R S O F T H I S K I N D O F M E M B E R S H I P M E R C H A N T S A R E N O T O N L Y L O O K I N G F O R D I S C O U N T S , B U T A L S O S P E C I A L D E A L S A N D G O O D C U S T O M E R S E R V I C E A N D A F T E R - S A L E S S E R V I C E . T H I S T Y P E O F C U S T O M E R L O Y A L T Y P R O G R A M C A N S T R O N G L Y T I E U P T H E R E L A T I O N S H I P S B E T W E E N T H E M E R C H A N T S A N D T H E C U S T O M E R S . Card- Based Programs P I C F R O M : H T T P : / / W W W . R O B C O N . C O M / P R O J E C T / C O S T C O - W H O L E S A L E - N E W - B E R L I N - W I /
  • 14.
    6 . CU S T O M I Z E D L O Y A L T Y P R O G R A M S V I A M O B I L E A P P S The rise of technology has enabled merchants to provide better customer experience in different industries and to develop their loyalty programs in more innovative ways. 
  • 15.
    M E RC H A N T S S H I F T T H E C U S T O M E R L O Y A L T Y P R O G R A M S F R O M R E W A R D S T A M P S , P L A S T I C C A R D S , P A P E R C A R D S T O M O B I L E A P P S .
  • 16.
     Every S$1 spend=1 star as a reward. With enough stars, customer can redeem free drinks in the store. Frequently sends promotions via Starbucks' app to members to build up its loyal customers. G R A B P O I N T S S T A R B U C K S ' S T A R S
  • 17.
    Mobile Apps LoyaltyPrograms C U S T O M E R S O N L Y N E E D A S M A R T P H O N E T O D O W N L O A D T H E A P P S O F T H E C U S T O M E R L O Y A L T Y P R O G R A M S . M E R C H A N T S C A N A L S O P R O A C T I V E L Y R E A C H O U T T O T H E C U S T O M E R S W H O A L R E A D Y H A V E T H E A P P S T O E N G A G E W I T H T H E M T O M A X I M I Z E P R O F I T S A N D T O M A K E C U S T O M E R S B U I L D U P L O Y A L T Y .
  • 18.
    18TH CENTURY 21ST CENTURY IN 1 8 T H C E N T U R Y , S H O P K E E P E R S O N L Y F O C U S O N B U I L D I N G U P T H E R E L A T I O N S H I P W I T H C U S T O M E R S A N D R E W A R D I N G T H O S E W H O S P E N D I N T H E I R S T O R E S T O M A K E T H E M C O M E B A C K A G A I N . N O W I N 2 1 S T C E N T U R Y , C U S T O M E R L O Y A L T Y P R O G R A M S B E C O M E M O R E S O P H I S T I C A T E D A N D C O M P R E H E N S I V E . T H E R E W A R D S A R E M O R E T A I L O R E D A N D C U S T O M I Z E D T O M A K E T H E R E W A R D S M O R E A T T R A C T I V E T O A P P E A L M O R E C U S T O M E R S .
  • 19.
    T h ef u t u r e o f c u s t o m e r l o y a l t y W W W . L O Y E L A . C O M