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As we head into 2025, how brands build customer loyalty changes fast. With new technology and shifting customer expectations, staying in tune with your customers' wants is more important than ever.
The year is about forming lasting relationships, blending personalization with privacy, making experiences more seamless, and being mindful of sustainability.
From using artificial intelligence (AI) to personalize offers, to adding fun elements like gamification to keep customers engaged, customer loyalty programs will focus on rewarding customers and growth catalysts for the organization.
In this blog, we’ll break down the biggest trends in customer loyalty for 2025, along with some statistics that show how things are shifting.
Customer Loyalty Trends to Look Out for in 2025
The year is all about rapid technological advancements and shifting consumer expectations in customer loyalty. These upcoming trends will meet customer expectations and foster lasting relationships.
Here are some top trends shaping customer loyalty this year:
Balancing hyper-personalization and privacy concerns
Companies leverage AI and data analytics to offer more personalized experiences to their customers.
AI will help analyze and gain deeper insights into customer behavior and preferences. This will allow companies to tailor their offerings to individual needs and enhance engagement and satisfaction.
This year, the emphasis will be renewed on finding the perfect balance between privacy and convenience.
Retailers have access to a truckload of customer data, which can help enhance convenience and streamline the shopping experience. However, they must carefully consider the potential benefits and risks—both real and perceived.
To truly protect consumer data and reduce potential risks, retailers should consider partnering with compliance experts rather than trying to manage it in-house.
A dedicated partner can help ensure that data protection practices are robust and up to standard, avoiding distractions from other business priorities.
For consumers to feel comfortable participating in loyalty programs, they need to trust that their data is secure and that it is being used to benefit them directly.
Integration of gamification elements
Modern customers are impatient, and it is easy to lose their attention. While keeping customers engaged is critical, you should not reward them every time they visit your store.
To boost engagement, many loyalty programs are incorporating gamification strategies. By introducing game-like elements such as challenges and rewards, brands make the customer experience more interactive and enjoyable, fostering deeper loyalty.
An APAC retailer had a loyalty app but struggled with low member engagement and missed cross-sell opportunities. To address these issues, it teamed up with Mastercard to develop a gamified mission board, where each customer was given a personalized set of challenges.
At its peak, the platform featured hundreds of tailored challenges. As a result, within the first year, the retailer experienced a 60% boost in app engagement and a six-fold increase in purchase frequency among game participants compared to non-participants.
Gamification, when used creatively, can boost customer loyalty and repeat purchases.
Emphasis on sustainability
According to NielsenIQ, 78% of US consumers feel a sustainable lifestyle is essential. As a result, consumers are increasingly favoring brands that demonstrate environmental responsibility.
Loyalty programs incorporating sustainable practices and rewards will resonate more with eco-conscious customers, strengthening brand loyalty.
There are multiple ways that brands can emphasize sustainability via loyalty programs:
- Eco-friendly rewards: Brands offer rewards like discounts on sustainable products or points for recycling old products (exclusive buy-back, exchange bonuses), encouraging customers to make environmentally conscious decisions.
- Supporting sustainable practices: To keep up with eco-friendly values, incentivize behaviors like choosing green delivery options, purchasing sustainable items, or opting for minimal packaging. For instance, Amazon offers customers the option to club delivery of multiple items at checkout, nudging them to choose eco-friendly delivery. Another example is Swiggy, which offers discounts and a non-rushed delivery option.
- Partnerships with environmental organizations: Allow customers to donate points to environmental causes or participate in sustainability initiatives, they truly believe in. This helps deepen engagement and brand loyalty.
- Tracking impact: Provide customers with data on the positive impact of their eco-friendly choices, such as reduced carbon or waste. This will strengthen their connection to the brand and encourage continued sustainable behavior.
A prominent example is BluSmart, where after every ride, they showcase the amount of carbon emissions saved from getting into the air by the customer, simply by choosing their electric taxi services.
Omnichannel engagement
Providing a seamless experience across various online, mobile, and in-store channels is becoming essential. Omnichannel loyalty programs ensure consistent customer engagement, allowing consumers to interact with brands through their preferred mediums.
Omnichannel loyalty programs ensure that customers earn rewards or benefits no matter where they interact with the brand—whether online, on mobile, or in person.
For example, through H&M’s loyalty program, customers can accumulate loyalty points through online purchases, sign up for exclusive offers via a mobile app, and redeem those points when shopping in-store.
Emotional connections and community building
Brands are focusing on building emotional connections by fostering communities and shared values. Loyalty programs that create a sense of belonging and align with customers' values are more likely to cultivate long-term loyalty.
Patagonia has earned a deep emotional connection with its customers by staying true to its commitment to environmental sustainability.
Through its activism and dedication to environmental responsibility, Patagonia fosters a sense of purpose among its customers, making brand loyalty more personal and meaningful.
Forming trust across generations
In customer loyalty, the focus is on how different generations engage with the loyalty programs. With Gen Z, Millennials, Baby Boomers, and Gen X capturing the consumer market, it is essential to have approaches that cover all the generations.
As per a Deloitte study, customers are likely to spend 3.8 times more on brands they trust and consider reliable.
- Trends in customer loyalty types
As per a SAP study, there are five kinds of customer loyalty:
- Incentivized Loyalty: Loyalty driven by incentives like discounts and rewards.
- Inherited Loyalty: Loyalty based on a brand’s heritage or associations with other trusted brands.
- Silent Loyalty: Loyalty shown privately by customers who don’t openly advocate for the brand.
- Ethical Loyalty: Loyalty is linked to a brand’s alignment with a customer’s values or social issues.
- True Loyalty: Deep, unshakable loyalty built on trust, love, and devotion, representing the ultimate goal for brands.
Over the last few years, incentivised loyalty and inherited loyalty have seen minor variations, suggesting that discounts and brand heritage are no longer enough to attract customers back.
In contrast, true loyalty and ethical loyalty are on the rise, signalling a trend towards stronger connections with the brand and responsible and sustainable shopping.
Top 25 Customer Loyalty Statistics Need To Know in 2025
Customer expectations are complex to decode and understanding the latest customer loyalty trends is crucial for brands to retain and engage their audience.
The statistics highlight key insights into consumer behavior, industry preferences, and generational differences in customer loyalty.
Customer loyalty
Customer loyalty trends fluctuate as consumers become selective about the brands they commit to.
Below are some statistics which reveal how customer loyalty levels are shifting and what factors drive customer retention.
- In 2022, customer loyalty peaked at 77% saying they were “loyal” to certain retailers, brands and stores. While in 2024, the number dropped to 69%. {Source}
- 73% millennials were loyal to customer loyalty programs in 2024, followed by 68% of baby boomers and Gen X. {Source}
- From 2021 to 2024, True Loyalty and Ethical Loyalty jumped by 26% and 25% respectively. The jump reflects a shift towards stronger brand connections and responsible shopping. {Source}
- 47% of customers feel increasing prices negatively impacts brand loyalty. {Source}
- 28% of customers increased the use of their loyalty programs in 2024, a whopping 40% increase from 2023. {Source}
- An average customer has close to 20 memberships, almost half active. {Source}
- 85% of customers feel loyalty programs make them more likely to continue business with brands. {Source}
- Almost 80% of customers have formed a relationship with the brands they purchase from. That can be in the form of a membership, retail subscription, or loyalty program. {Source}
- In 2024, 9% more consumers in the US are ready to pay for fee-based loyalty programs than consumers in 2022. {Source}
- More than 50% of consumers globally believe that customer service is “very important” in brand choice and loyalty {Source}
- 60% of customers believe loyalty programs offer sufficient personalization while 73% of consumers feel personalized experiences or rewards are essential for a customer loyalty program. {Source}
- Eight out of 10 consumers feel earning and redeeming financial rewards is the most critical attribute when looking for a loyalty program. {Source}
Generational approach
Younger generations approach loyalty differently, with digital convenience and personalization playing key roles.
Here are some statistics that outline their unique expectations and behaviors.
- In case of poor customer service, 74% of millennials will consider switching to a different retailer, while 86% of Gen X and 85% of Baby Boomers will also do the same. {Source}
- A little more than 60% of online adults in the US are ready to share personal information with companies to get extra perks like cash rewards, loyalty program points, early access to new products, and other value. {Source}
- Younger generations are more than twice as likely to switch to a competitor’s loyalty program as consumers in other age demographics. {Source}
- Less than 40% of Gen Z and 42% of millennials said they are ready to pay a premium for sustainability. {Source}
- More than 75% of Gen Z and millennials are looking for an accessible and enjoyable digital experience, compared to less than half of baby boomers. {Source}
Industry-level
Certain industries naturally foster stronger customer loyalty. Here are statistics on the sectors with the highest engagement and where loyalty is growing the fastest.
- Customer of clothing & fashion (54%) topped the list of industries consumers are most loyal to. {Source}
- Food delivery and beauty & skincare saw the largest YoY point increases with 14% and 10% respectively. {Source}
Sustainability
Consumers are increasingly prioritizing sustainability when choosing brands. These statistics highlight the growing importance of eco-conscious business practices in customer loyalty.
- 22% of consumers are now more loyal to brands with a commitment to sustainability in 2024, this number is up from 17% in 2023 {Source}
- For 60% of customers, sustainability is an important criterion while purchasing. {Source}
- More than 30% of consumers say they are ready to pay more for sustainable products and services. {Source}
Mobile experiences
A seamless mobile experience is no longer optional, it is a loyalty driver. The statistics show the critical role of mobile accessibility in retaining customers.
- More than half of customers will not recommend a business with a poorly designed mobile website. {Source}
- Even if 50% of customers like the business, they are willing to stop visiting a site that isn’t mobile-friendly. {Source}
Regional loyalty preferences
Loyalty program preferences vary by region, with some consumers valuing tangible benefits more than others. These insights break down how loyalty expectations differ across markets.
- Consumers from the US are more concerned about benefits with tangible value than people in Europe or Asia-Pacific. 85% of US residents rank points, cash back, and promotions among the top five loyalty program benefits. {Source}
How can Loyalife help you with Loyalty Programs?
Loyalife provides a suite of features tailored to meet all your needs to a robust customer loyalty program:
Customizable loyalty engine
Loyalife's scalable loyalty engine platform allows businesses to launch engaging loyalty programs with customizable rules and structures.
Omnichannel engagement
Recognizing the importance of a seamless customer experience, Loyalife enables an omnichannel communication (including online, mobile, and in-store interactions) ensuring consistent engagement and enhancing customer satisfaction.
Advanced analytics and insights
Loyalife empowers businesses to make data-driven decisions across each loyalty program touchpoint to scale it effectively. With comprehensive reports, companies can refine their strategies to enhance engagement and retention by seeking insights into customer behaviors and program performance.
Seamless API integrations
Loyalife's API integrations allow easy integration with existing CRM systems, marketing tools, and transaction platforms, ensuring a unified approach to customer relationship management and loyalty initiatives.
Discover how Loyalife can transform your customer loyalty strategy. Book your demo now!
