Loyalty in India: Trends and Top Loyalty Programs

Brand loyalty and customer retention, as well as customer success in India have never been more important. With one of the world’s fastest-growing consumer markets, Indian brands across retail, finance, travel, and technology are doubling down on loyalty programs to retain customers, increase wallet share, and build long-term trust.

From cashback and points-based models to tiered memberships and ecosystem-driven perks, the loyalty landscape in India is both diverse and highly competitive. In this blog, we’ll explore the biggest loyalty trends and highlight some of the best loyalty programs in India that offer exclusive benefits and shape consumer behavior today.

Loyalty trends in India

India is one of the fastest-growing loyalty markets in the world, with programs counting memberships in the millions. Myntra Insider’s 6.8 million members drive over 40% of sales, and Shoppers Stop reports that its First Citizen members contribute a staggering 78% of total sales.

These numbers highlight just how central loyalty has become to consumer behavior in India, and why the India loyalty market is attracting global attention.

But it’s not just about scale. As competition heats up, loyalty programs are evolving beyond simple rewards. From cashback and points to ecosystem-driven perks, CSR-linked benefits, and AI-powered personalization, the market is moving fast.

Here are the five key trends shaping the future of loyalty in the country.

1. Points + cashback still reign supreme

Indian consumers are extremely value-conscious, and nothing drives repeat purchases like instant, tangible rewards. Cashback offers and straightforward points-based systems remain the most popular mechanics across industries, from e-commerce to banking.

Programs like Paytm and PhonePe continue to win loyalty by giving users immediate financial benefits that feel like “money back in the pocket.”

2. Tiered loyalty programs are gaining momentum

While points and cashback dominate the mass market, tiered loyalty programs are becoming increasingly aspirational. Airlines, hotels, and premium retailers are using status-based rewards, like lounge access, early sale previews, and exclusive events, to motivate higher spend and long-term commitment.

Brands like IndiGo 6E Rewards and Marriott Bonvoy in India prove that status perks resonate with middle-class and affluent consumers looking for recognition as much as discounts.

3. Ecosystem loyalty is booming

India’s largest players are betting on ecosystem-driven loyalty, integrating shopping, payments, travel, and entertainment under one umbrella.

Tata Neu combines rewards across diverse Tata brands, while Amazon Prime and Flipkart Plus keep users loyal through bundled benefits, like free delivery, streaming, and partner perks. By linking multiple lifestyle categories, these ecosystems make it difficult for customers to leave, deepening engagement.

4. Personalization is the next battleground

With over 900 million smartphone users expected in India by 2025, the data opportunity is immense. Brands are investing in AI and analytics to deliver hyper-personalized rewards based on individual purchase behavior and preferences.

For example, Myntra Insider tailors promotions to each shopper’s style history, while grocery platforms like BigBasket recommend discounts on frequently purchased items. The ability to move beyond “one-size-fits-all” rewards will separate leaders from laggards.

5. Social impact & sustainability are rising

Younger consumers in India increasingly expect brands to stand for something beyond transactions. Loyalty programs are starting to incorporate eco-friendly rewards, CSR initiatives, and community benefits.

IKEA Family India rewards customers for purchasing sustainable products, while energy companies like Tata Power Club Enerji incentivize green behaviors and repeat customers. This trend not only builds loyalty but also strengthens brand trust by aligning with consumer values.

Top 7 Customer Loyalty Programs in India

From airlines and e-commerce giants to jewelry brands and even power companies, businesses are reimagining loyalty as a mix of convenience, exclusivity, and purpose. What makes these programs stand out is their ability to tap into India’s unique blend of value-seeking behavior and aspirational lifestyle choices.

Here are seven of the most successful loyalty programs in India, and why they’ve struck the right chord with millions of customers.

1. IndiGo 6E Rewards

IndiGo’s frequent flyer program has become one of India’s most recognized travel loyalty schemes. Members earn points when booking flights, with opportunities to redeem them for discounts on future travel. The program also partners with banks and lifestyle brands, extending benefits beyond flights. Higher-tier members enjoy lounge access, priority boarding, and partner discounts.

Why it works: Air travel in India is expanding rapidly, with IndiGo leading the low-cost carrier space. The blend of practical benefits (like faster boarding and fee waivers) with status-driven perks appeals to both frequent business travelers and aspirational leisure flyers. It’s a smart balance of affordability and prestige.

2. Myntra Insider

Launched by one of India’s top fashion e-commerce platforms, Myntra Insider is designed as more than a transactional point-based program. Members unlock early access to big sales, exclusive product launches, fashion advice, and gamified “style missions.” The program also integrates influencer collaborations and community-driven challenges.

Why it works: With 6.8 million members driving 40% of Myntra’s sales, this program shows how blending community, exclusivity, and lifestyle rewards can engage younger shoppers. It goes beyond discounts, tapping into fashion culture and making customers feel like insiders.

3. Shoppers Stop First Citizen Club

A pioneer in Indian retail loyalty, Shoppers Stop First Citizen Club has multiple tiers offering escalating rewards. Members earn points on purchases, get birthday perks, exclusive previews, and access to special shopping events. The top-tier members even receive premium services like personal shoppers.

Why it works: With First Citizen members accounting for 78% of Shoppers Stop’s total sales, the program proves the power of tiered loyalty. It creates an aspirational path for customers to climb, rewarding both spending and emotional attachment to the brand.

4. Titan Encircle

Titan’s Encircle program ties together its diverse portfolio of brands: Titan Watches, Tanishq Jewelry, Fastrack, and Titan EyePlus. New customers and members earn points across these categories and enjoy special event invitations, bonus rewards, and seasonal campaigns.

Why it works: Titan excels at ecosystem loyalty within a single corporate group. By linking watches, jewelry, and eyewear, it builds cross-category stickiness. A customer who buys a watch might later shop for eyewear or jewelry, staying within Titan’s universe and partner brands.

5. Paytm First

Paytm, one of India’s largest fintech and e-commerce players, runs a subscription-based loyalty program. For an annual fee, Paytm First members get cashback on transactions, OTT subscriptions (ZEE5, SonyLiv), food delivery discounts, and travel perks.

Why it works: Paytm First demonstrates the power of ecosystem-driven loyalty. By bundling diverse lifestyle benefits into one membership, Paytm makes it convenient and cost-effective for frequent shoppers to stay loyal. It ensures customers use Paytm not just for payments but for entertainment, shopping, and travel.

6. Tata Power Club Enerji

Club Enerji is a sustainability-focused loyalty initiative that rewards energy conservation and community initiatives. Originally designed as a youth movement, it has expanded into a customer rewards program for bill payments and eco-conscious actions, including paid programs . Participants gain recognition and rewards for sustainable contributions.

Why it works: At a time when values-driven loyalty is growing, Tata Power connects purpose with rewards. By tying loyalty to sustainability and CSR, it appeals to India’s younger, socially conscious demographic and builds long-term trust around brand purpose and brand loyalty.

7. Marriott Bonvoy (India)

Marriott Bonvoy offers global rewards to Indian travelers across its many hotel brands. Members earn points on stays, dining, and experiences, which can be redeemed for free nights, exclusive discounts, or even concert tickets and exclusive events. Higher tiers offer lounge access, late checkout, and status recognition.

Why it works: Marriott Bonvoy taps into both aspiration and practicality. For India’s fast-growing middle class and business travelers, the ability to earn globally redeemable rewards plus access to luxury perks makes the program highly desirable.

Best practices for loyalty programs in India

Launching a loyalty program in India isn’t just about copying global templates. Success comes from weaving international best practices with the unique rhythms of Indian consumers, their spending habits, cultural touchpoints, and digital behaviors.

1. Know your audience inside out

India’s consumer base is incredibly diverse. On one end, you have price-sensitive shoppers who want instant gratification through cashback, discounts, or points that are easy to redeem.

On the other hand, you’ll find aspirational millennials and Gen Z who crave status, exclusivity, and access to premium experiences. The best programs blend both: something tangible and immediate to keep people hooked, and something aspirational that builds long-term affinity.

This matters more in India because the digital boom is pulling new demographics online fast. UPI alone now powers 85% of all retail digital payments in the country, and transaction volumes are projected to nearly triple by 2029.

2. Put technology at the heart

India’s payment infrastructure is a super-enabler. If you use it well, you can make loyalty practically invisible (in a good way) and encourage customers to take part into the best digital loyalty programs.

• Real-time rewards matter: If you can show “you just earned X points/discount now,” people feel the payoff immediately. This builds reinforcement.
• Integrations & partnerships: Use APIs to plug into UPI flows, wallet providers, e-commerce checkouts, and fintech apps. Cross-brand tie-ups (e.g. banks + retailers + food delivery) increase reach.
• Offline + online: Even with all the digital, many users still interact offline. So loyalty should work in both environments: QR codes, POS terminals, offline activations. Data shows POS terminals are expanding (point-of-sale infrastructure grew ~24.7% in FY25), and UPI QR codes jumped 91.5%.

3. Keep it simple, keep it fair

Complex loyalty often fails because people don’t understand how to earn, what rewards cost, or how to redeem. Simplicity buys trust and repeat behaviour, and Indian users value clarity.

Programs that thrive here are those with transparent terms, rewards that can be used for everyday spends like groceries or bill payments, and communication in local languages.

If your tiers feel impossible to reach, or redemption takes too long, engagement will collapse. Trust is built when customers understand exactly what they’re getting, with no fine print.

• Transparent terms: No “hidden fees,” no “you need to spend X before this reward is valid,” etc.
• Low friction redemption: Let people use points and vouchers for everyday items: groceries, mobile top-ups, utility, and bill payments. Not just premium nice-to-haves.
• Minimal tiers unless value is high: If you have multiple status levels, ensure the benefits climb reasonably; avoid having levels that people feel they’ll never reach.
• Localization in communication: Using regional languages, familiar metaphors, and culturally relevant imagery. Even just SMS or app push in local languages can help.

4. Treat your program like a living product

India is a promotions-driven market where trends move fast. That means a loyalty program can’t be static. Brands need to measure everything (redemption rates, active usage, churn) and run constant experiments.

A/B test reward structures, tweak communication channels, and watch how different customer groups respond.

With so much transaction data flowing through digital payments, there’s a rich opportunity to personalize offers. The winners are those who refine their programs in real time, instead of treating them as “set and forget” campaigns.

5. Tap into cultural and emotional loyalty

In India, loyalty isn’t purely transactional. It’s emotional, rooted in family, festivals, and shared values. Programs that acknowledge this build deeper resonance.

That might mean running special campaigns during Diwali, Holi or Eid, or recognizing personal milestones like birthdays and anniversaries with tailored offers and exclusive benefits.

Some of the most loved initiatives tie rewards to causes, giving loyal customers the option to redeem points and donate them to NGOs or local community projects.

Others surprise people with unexpected bonuses or gamified challenges. When loyalty feels personal, fun, and culturally connected, it creates the kind of stickiness that discounts alone can never achieve.

Bonus: Other strong moves

Here are a few extra “cheats” that successful programs often use:

• Paid loyalty tiers: go with paid and tiered programs for customers who are already engaged and want more. They’ll pay for premium benefits if perceived value is high (free fast shipping, concierge, etc.)
• Coalition loyalty: partner across sectors (for example, retailer + travel + banking); it allows consumers to earn and redeem in more places, increasing the utility and program's success.
• Hyper-personalization: using AI/ML on transaction histories to predict what people want; sending very targeted offers rather than blasting everyone. For more on the latest loyalty trends, including personalisation and new approaches to retention, see our full overview.

White Label Loyalty: powering loyalty programs worldwide

The success of these programs demonstrates that Indian consumers respond to tiered benefits, ecosystem integration, personalized rewards, and values-driven engagement. White Label Loyalty’s suite of products is perfectly positioned to help brands capture this evolving market:

• Activate → Launch & scale effortlessly with custom-branded mobile apps, microsites, and expert support. Activate empowers brands to capture customer insights, drive engagement, and grow revenue.
• Gravitate → Turn followers into customers with loyalty for social media. Launch loyalty campaigns directly on Instagram, collect GDPR-compliant first-party data, and boost sales.
• Enterprise → Leading enterprises scale customer loyalty effortlessly with White Label Loyalty's fully customizable and modular engine.
• Dynamo → Drive user engagement, influence behavior, and iterate effortlessly with our enterprise-ready loyalty engine API and SDK. Deliver faster and more efficiently.

By combining cutting-edge technology, seamless integration, and data-driven personalization, White Label Loyalty enables brands to replicate the success of India’s leading loyalty programs, driving engagement, repeat purchases, and long-term customer loyalty.