Key Loyalty Program Statistics In 2025 Every Brand Should Know

Customer acquisition costs are rising, making brand loyalty essential for maintaining customer relationships and profitability.

Loyalty programs are not just for big companies anymore, as over 90% of businesses use them. But before you dive headfirst into creating a rewards program, it’s best to understand the lay of the land. What are the latest trends? What do customers really want? What separates the winning programs from the ones that fall flat?

To grasp the essence, we’ve gathered key loyalty program statistics to give you a clear and complete picture. This will help you make data-driven decisions for your loyalty strategy. Let’s get some insights!

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General Customer Loyalty Statistics

• 72% of product users are loyal to at least one brand or company.
• 77% of consumers stay loyal to their favorite brand for a decade or longer.
• 57% of consumers are willing to spend more money on brands they feel loyal to.
• 7/10 Americans considered loyalty programs a leading factor in securing their loyalty towards their favorite brands.
• US consumers are 10% more likely to choose top-tier loyalty programs, shop 14% more often, and are 12% inclined to recommend these brands than lower-performing programs.
• 63% of executives in the USA reported increasing their company’s budget for loyalty programs.
• High-performing loyalty programs can increase annual revenue from customers who redeem their points by 15% to 25%.
• The value of the customer loyalty management industry is over $5.5 billion. This figure is expected to exceed $24 billion by 2028.

Benefits of Loyalty Programs

• Increased Customer Retention:
  • Customers feel valued through personalized offers and rewards. They will make purchases with a desire to maximize their rewards. Loyal customers spend 67% more than new ones.
  • 80% of consumers are more inclined to engage with companies that offer personalized experiences.
• Enhanced Revenue:
  • 85% of customers say that loyalty programs encourage them to keep purchasing from the same brand.
  • Moreover, these programs often encourage referrals. In America, happy customers share their positive experiences with and refer to approximately 11 people.
• Enhanced Brand Advocacy:
  • 69% of consumers say loyalty programs influence their choice of retailer.
• Improved Customer Lifetime Value (CLTV):
  • A 5% increase in customer retention can increase profits by 25-95%.
  • Existing customers are 50% more likely to try new products and spend 31% more than new customers.

Loyalty Program Adoption & Participation

Loyalty programs have become an important business strategy to promote customer engagement and retention.

• Over 90% of businesses now implement loyalty programs.
• An average shopper holds 19 memberships, with 9 being actively used.
• 62% of consumers will choose to shop primarily with brands they trust.
• 79% of consumers have formed some type of relationship with brands.
• More than 70% of loyalty program members prefer to engage with programs via mobile app
• Approximately 64% of loyalty program members adjust their spending to maximize rewards
• Younger consumers, particularly those aged 25 to 44, are the most frequent users of loyalty programs

Key Trends Shaping Loyalty Programs in 2024

• Personalization of rewards: Personalization remains the key to increasing customer loyalty. 
  • 71% of consumers feel frustrated when a shopping experience is impersonal.
  • 37% of loyalty programs already use personalized rewards, and 53% plan to implement them.
• Omnichannel loyalty: 67% of consumers use multiple channels to engage with brands, raising the needs to create a seamless experience online and in person
• Gamification: 60% of consumers say they’re more likely to buy from a brand if it offers gamified rewards.
• Value-driven programs: Customers are increasingly drawn to brands that share their values, especially when it comes to sustainability and social responsibility. 88% of consumers are more loyal to companies that support social or environmental issues.
• Increased investment: Around 80% of loyalty program owners plan to increase their investments in customer loyalty over the next three years. This focus is expected to enhance customer satisfaction and drive ROI.
• Premium loyalty elements: 22% of companies now include premium elements in their loyalty programs. These premium offerings attract high-value customers and create exclusive experiences.
• Regular updates: 64% of companies that made significant changes to their loyalty programs report better customer satisfaction than just 43% for those that didn’t update their systems.

The Influence of Personalized Rewards

Personalization is one of the most outstanding features of loyalty programs. It continues to be the key concept to succeeding in this strategy.

• 80% of consumers say they are more likely to engage with companies that provide personalized experiences.
• 65% of shoppers would be willing to share their personal data in exchange for personalized offers that add value.
• Nearly 49% of customers admit to impulse purchasing once they’ve received personalized product recommendations.
• 40% of consumers spend more when they encounter highlight-tailored experiences.
• According to research on online adults, 63% of Americans and 71% of Italians are happy to share their personal information for perks like early product launches or loyalty rewards.

What Makes A Loyalty Program Succeed?

Crafting a loyalty program that truly resonates with your customers and drives results requires more than just throwing points and discounts around. Here are some key factors that contribute to a successful loyalty program

Offer attractive deals

Consumers love loyalty programs that provide tangible benefits. Hence, one of the key ways to attract and retain customers is by offering valuable rewards.

• 39% of customers value big discounts when considering a loyalty program.
• 79% of customers say they tend to stay loyal when they can access exclusive benefits.
• 73% of shoppers claim that free shipping greatly influences their buying decisions.
• 60% of customers look for early access to sales, while 50.8% want early access to new products.
• 60% of shoppers report that surprise rewards are key to their continued brand loyalty.

Create deeper connections

Successful loyalty programs go beyond transactional relationships to foster emotional connections with customers. When customers feel connected to your brand, they become loyal advocates and continue supporting you.

• 72% of customers think loyalty programs are a part of their business relationships.
• Customers with strong emotional ties to a brand show 306% higher lifetime value.
• 71% of emotionally engaged customers tend to recommend the brand.
• 69% of customers will renew a paid plan if they perceive it as a membership, not just a subscription.
• 56% of consumers can spend more on brands they love, even when they have more affordable options.
• Emotional loyalty, driven by genuine connections rather than rewards, has increased by 25% from 2021 to 2024.
• 64% of consumers want brands to connect with them and share their values.

Focus on your brand value

Consumers want to align with brands that reflect their values. Brands that emphasize social responsibility or purpose-driven missions often see greater customer loyalty.

• 60% of consumers consider sustainability a key factor when making purchasing decisions.
• 34% of shoppers don’t mind paying more for sustainable products and services.
• 39% of Gen Z are inclined to pay a premium for sustainability.

Successful Loyalty Program: Case Studies

Here are some successful case studies showcasing the impact of loyalty programs:

• Amazon Prime: Amazon Prime members typically spend over twice as much as non-prime customers.
• Walmart+: Members spend about $79 on average for one online visit, which outpaces the average figure of $62 from non-members.
• Princess Polly: This brand reaches a remarkable 4x return on investment through its loyalty program.
• Starbucks Rewards: The Starbucks Rewards program in the US grew its active members to 31.4 million in 90 days.

What Makes A Loyalty Program Failed?

Loyalty programs can be a powerful tool for retaining customers. However, they may also fail if not executed well. Several factors that lead to the downfall of these programs are:

• Focusing Solely on Transactions:
  • 68% of customers believe loyalty programs should be more about building relationships than just transactions.
  • 97% of loyalty programs fail because they focus solely on transactional rewards.
• Poor Communication: 54% of loyalty program members don’t receive regular communication from the brand.
• Overly Complex or Confusing: 36% of consumers don’t understand how to earn or redeem rewards in the programs they’ve joined
• Poor customer experience: A single bad experience can prompt one in three customers to leave a brand they once loved. Moreover, 59% of US customers report they would entirely abandon a brand they are loyal to after a few poor interactions.
• Mobile incompatibility: 57% of customers won’t recommend a brand with a terrible mobile website design. If a site isn’t mobile-friendly, 50% of visitors will leave.

Bottom Line

The loyalty program statistics above speak for themselves: loyal customers spend more, stay longer, and become your brand advocates.

Don’t let your loyalty program fall behind. Leverage these statistics to refine your strategy, keep pace with the latest trends, and ultimately boost customer retention and satisfaction.

And if you’re looking for a helping hand to get started,  Joy Rewards & Loyalty Program offers the tools and expertise to make your loyalty program shine.