MW These 6 store rewards programs have the best perks and are easy to use
By Genna Contino
Loyalty programs aren't what they used to be -but retail experts say these six put the customer first instead of simply harvesting personal data
Sephora's Beauty Insider rewards program uses customer data to offer personalized recommendations for beauty products, retail experts say.
Store loyalty programs have evolved beyond simple punch cards. Engaging with your favorite store these days can involve tracking rewards points in a spreadsheet to determine how to get the maximum value or playing mini games in an app to win a free milkshake.
But the more customers engage with a company, the more personal data they're giving up. Companies use consumers' personal information and in-app behavior to determine how they shop and how much they're willing to spend - and can hike prices as a result. That's a turn of events many Americans could do without as they cope with already high prices for housing, cars, food, healthcare and child care.
Read more: Store loyalty programs are taking your personal data and may use it to charge you more. Here's how to protect yourself.
Companies can also use loyalty program data to help consumers, but it's important to seek out the programs that prioritize enhancing the customer experience over mere data harvesting.
"Some ... companies are genuinely using the data to better meet their consumers' needs. And in those types of situations, I think it's a beneficial two-way exchange," said Yuping Liu-Thompkins, associate dean for research and faculty at the Old Dominion University Strome College of Business, where she researches customer loyalty. "Of course, there are also some situations where the companies are just really trying to charge a higher price in a different way."
As store loyalty programs get more complicated, Liu-Thompkins said, consumers are increasingly seeking out simplicity in rewards when shopping.
Here are six loyalty rewards programs that prioritize the customer without making things too complicated or expensive, according to experts.
Target
Target's (TGT) basic loyalty program, Target Circle, is free and automatically applies available deals when customers make a purchase. The program doesn't require a lot of interaction from the customer, who just needs to type in their phone number at checkout.
Target also has a paid membership, Target Circle 360, which can be worth it for those who shop regularly at the big-box store. It costs $10.99 a month or $99 a year and provides free same-day delivery, free shipping, monthly freebies and early access to sales.
Hyatt
Among hotel rewards programs, experts say the one at World of Hyatt $(H)$ stands out. Members rack up points when booking stays at Hyatt hotels that can be used to book free stays, without any blackout dates. Members also earn a free night after staying at five different Hyatt brands.
Sephora
Liu-Thompkins cited makeup retailer Sephora as an example of a company that trades high-value perks for deep consumer insights, like creating a "beauty profile" for users based on provided information, such as skin type or color preferences, to offer personalized recommendations.
The Sephora Beauty Insider program, which gives members points based on the purchase price of an item, also provides exclusive access to sales, limited-edition products before they hit the general market, free shipping, a free birthday gift, at least one point per every dollar spent and point-multiplier events. Members can redeem 500 points for $10 off a purchase.
Nike
Nike's $(NKE)$ free membership offers free shipping on orders over $50, no-receipt returns and even sport and style advice from experts.
REI
Outdoor-gear retailer REI offers a lifetime membership for a one-time payment of $30. Members receive 10% of the purchase price back in the form of cash or store credit at the end of each year, along with free U.S. standard shipping and special offers and coupons.
Chili's
Members of Chili's $(EAT)$ free rewards program get free chips and salsa with every visit and a free dessert on their birthday - straightforward perks that don't require complicated calculations of points.
When fine-tuning Chili's loyalty program, the company used social media to listen to its customers and understand what they value, ??said Craig Miller, a business strategist who previously worked with Chili's on a consulting basis. This helped the company survive when quick-service restaurants were struggling during the pandemic.
"When you start with the customer value as a principle, as opposed to pricing, that will always win out for a company," Miller said.
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-Genna Contino
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December 17, 2025 12:17 ET (17:17 GMT)
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