The rewards you could offer your loyalty program members will depend on the type and size of business.
Here are some loyalty program reward ideas for different industries:
1. Free product/service
Free products or services can work particularly well for physical stores, especially as these kind of rewards are generally low-cost for the business.
Some free product ideas:
Cafe, bar or restaurant: a free coffee, upsize, cake, dessert, starter, free entry, buy one get one free etc
Beauty parlour or hairdressers: free sample products, makeup bag, massage, free hair cut, colour upgrade etc
Car wash: a free wax, inside clean, air freshener etc
Retail: a free product, branded merchandise etc
University: waived fees, free club memberships, merchandise
Discounts are a great way to encourage repeat business. Discount codes can be shown in-person or entered online at the checkout, depending on your business model.
For example, you could offer a 25% discount off a customer’s next purchase.
3. Digital gift cards from a 3rd party
You may wish to offer gift cards from leading brands. These can be issued to customers via email.
For example, a plumbing company may wish to offer loyal patrons an Uber Eats or Amazon voucher.
An emerging reward trend is to offer experiences to members as opposed to gifts or discounts.
These experiences could be something you offer yourself, or you could potentially partner with a related business. For example, a hotel could partner with a local tour agency and vice versa.
If you're a restaurant, you could offer a cooking class, or "behind the scenes" experiences.
Reward experiences may not even need to cost you much.
There are many other rewards you can offer to your loyalty program members which can be as simple as pre-release access to sales etc. Some ideas include:
Upgrades (e.g. large coffee when purchasing a small)
Charitable donations (support a cause that your customers care about, perhaps that benefits your local community)
Events (such as a new store opening, a masterclass)
Advanced access to sales, special offers, events
Exclusive content or access (VIP tutorials, ‘behind-the-scenes’ access, pre-sale entry)
Take a look at this article for some innovative reward ideas, including some that may not cost you at all.