The idea
At the top of the programme, offer what money can't buy – a hand in creating products, the chance to try launches before anyone else, a look behind the scenes, members-only prize draws and surprises. Add a personal adviser: yes, you could book one anyway, but being given one feels better.
Where it fits
Brands with their own products and a steady flow of launches, especially in categories tied to emotion or image – beauty, fashion, gaming, sportswear and sports equipment, film, music, tech. Food is harder: not everyone wants to watch yoghurt being made. Even so, a factory tour or an early tasting will find its audience, particularly among members with children.
Example: e.l.f. Beauty Squad (USA)
e.l.f. Beauty Squad has three tiers based on points earned: up to 999, 1 000–1 999 and 2 000+. Members earn 10 points per dollar spent in e.l.f.'s own channels, and at other retailers by scanning their receipts. They also earn points for a long list of other actions that together add up to a portrait of the "ideal" customer, including reviews, referrals, quizzes and challenges, inviting friends, downloading the app and completing their profile.
At the top tier, members get behind-the-scenes product development opportunities, free new products before launch, a personal beauty adviser, free entry to exclusive e.l.f. prize draws, and surprise offers. Every tier gets a birthday gift, a welcome gift on reaching the tier, early access and members-only collections.
Retailer receipts are valuable in their own right for a brand that sells both direct and through retailers: they show the whole basket, competitors' brands included.
What e.l.f.'s published figures show
- more than 5.6 million members (February 2025), with enrolment growing by more than 20% a year;
- more than 3 million app downloads;
- members account for around 80% of sales on the e.l.f. website (May 2024) and, according to Glossy (March 2024), 95% of app transactions; their lifetime value is 166% higher than that of non-members;
- the company uses insights from its website and the programme to replace part of its retail range every year (annual report, FY2025/26).
What it does for the business
- The top tier becomes more valuable without a bigger rewards budget: access to launches and product development costs next to nothing, yet members prize it – not least because it can't be bought.
- Free focus groups made up of your most engaged customers: fewer misfires with new products, and range decisions based on data rather than guesswork.
- Member stories become a major driver of your communications: customers who helped create a product talk about it of their own accord, and a large brand-backed community amplifies the effect.
Perks like these work at any price point – only the entry threshold changes. And in mass-market and value segments, it's even easier to surprise people.
Takeaways
- Fill the top tier with perks money can't buy – product development, early access, private events. Members value them more than discounts, and they cost very little.
- Reward more than purchases: every action the business needs – a review, a retail receipt, a completed profile – is a reason to award points and a way to get to know the customer better.
- Feed what you learn from your best customers into range decisions, so the programme pays off in more than repeat purchases.
Where in your business could you take your best customers behind the scenes?
LOYALZ is not affiliated with, endorsed by or acting on behalf of the companies mentioned. This review is based on publicly available sources and reflects LOYALZ's opinion. Company and programme names are used for identification only and belong to their respective owners.
Figures are taken from the sources cited and were checked on 20 October 2026. Programme terms may change. If you spot an inaccuracy, let us know and we'll check it and put it right.
- e.l.f. Beauty – Q3 FY2025 earnings call (6 Feb 2025) · accessed 20 October 2026
- Digital Commerce 360 – "E.l.f. Beauty sales increase 71% in Q4 as the category continues to grow" (23 May 2024) · accessed 20 October 2026
- Glossy – "How E.l.f. Cosmetics drove a 125% increase in monthly active app users" (20 Mar 2024) · accessed 20 October 2026
- e.l.f. Beauty – Form 10-K, fiscal year ended 31 March 2026 · accessed 20 October 2026
- e.l.f. Cosmetics – Beauty Squad Loyalty Program terms · accessed 20 October 2026
- e.l.f. Cosmetics – Discover the e.l.f. Cosmetics app · accessed 20 October 2026
