Every year, new advancements in the field of customer loyalty are brought about by changes in consumer behaviour, technological advancements, and outside influences like the economic climate and socially conscious initiatives, which compel businesses to reconsider their approaches to building brand loyalty.
In this blog we explore the trends set to shape the customer loyalty industry in 2025.
Contents:
Key Takeaways
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Focus on creating personalised moments that make each customer feel truly understood. |
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Choose technology solutions that can grow and adapt with your programme's evolving needs. |
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Create seamless experiences across all channels to maintain consistent engagement. |
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Make your programme mobile-friendly to meet customers where they already spend their time |
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Rewards need to be instantly accessible and easy to use. |
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Strategic partnerships help you create unique value propositions that set your programme apart. |
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Use tiered programmes to motivate customer progression while recognising their achievements. |
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Build sustainability into your core loyalty strategy rather than treating it as an add-on feature. |
The Evolving Loyalty Landscape: Understanding Today's Consumer
Loyalty is undergoing a fundamental shift as we continue through 2025. Our Loyalty Uncovered Report, an analysis of conversations with 100 enterprise brands, reveals a market in transition. Traditional loyalty approaches are changing to meet rapidly evolving consumer expectations.
The Current State of Loyalty
Today's loyalty programmes face unprecedented challenges in customer retention, with 83% of businesses struggling with engagement and 80% grappling with churn management. You simply cannot afford to rely solely on purchase points and rewards.
Earning customers’ loyalty now requires building meaningful connections that transcend basic transactional relationships.
The numbers speak for themselves: 84% of businesses now prioritise personalisation and strategic partnerships, understanding that modern loyalty needs a delicate balance of value, emotion and execution. Traditional point-based systems now give way to innovative solutions that reflect a greater understanding of what keeps customers loyal.
Understanding Modern Consumer Behaviour
Consumer demands have changed profoundly, and for several reasons:
Digital-first mindsetThe widespread adoption of mobile-first strategies (a priority for 77% of businesses) shows how deeply digital experiences have become ingrained in consumer behaviour. Today’s consumers demand a consistent customer experience across all channels. Meanwhile, 77% of businesses say multi-channel consistency is a critical challenge. |
Value beyond transactionsInstant gratification is still valuable, but customers increasingly want more than just transactional benefits. This shift is evidenced by 74% of businesses focusing on experiential rewards, recognising that emotional connections drive long-term loyalty. |
Personalisation as standardModern consumers expect brands to understand and anticipate their needs. Our research shows that 84% of businesses are investing in personalisation capabilities, responding to consumers who increasingly view personalised experiences as a basic expectation rather than a luxury. |
Looking aheadAs we examine the trends shaping loyalty in 2025, it's clear that success will depend on how well businesses can adapt to these evolving customer expectations. The following trends reflect the industry's response to these changes. They show how brands reform their loyalty strategies to create sustainable competitive advantages in an increasingly complex marketplace. |
Customer Loyalty Trends That Will Define Success in 2025
Here are the key areas businesses are investing in to secure customer loyalty in 2025.1) Always-on Rewards - Instant Gratification
Customer expectations of instant rewards have shaped loyalty programme trends. Modern technology has made us expect products to be easily accessible or delivered to our homes, and this mindset extends to rewards.
Our research shows that 75% of businesses now prioritise real-time rewards and instant gratification in their investment strategies—a clear response to evolving customer expectations.
People will continue to insist on getting their hands on everything immediately. To retain customers, offer loyalty members immediate and continuous rewards unrelated to their spending habits. Immediate discounts or sign-up bonuses are excellent examples of how you can keep customers hooked.
2) Strategic Brand Partnerships
Brand-to-brand partnerships have emerged as a cornerstone of modern loyalty programmes, with our research showing 84% of businesses prioritising these alliances in their investment strategies.
It's easy to see why: partnerships offer a cost-effective approach to growing your brand whilst giving customers access to a broader range of valuable rewards.
By joining forces with like-minded brands, you can create experiences that go beyond typical loyalty benefits. These partnerships allow you to pool resources and expertise, developing products and services that exceed customer expectations. Through carefully chosen partner promotions and discounts, you can offer your customers more value without stretching your core business capabilities.
The key is selecting partners whose offerings complement your services and resonate with your audience. When done right, these partnerships boost brand loyalty, customer retention, and engagement by providing value that extends well beyond your usual product range.
3) Personalised Customer Experience
Customers are placing a higher value on personalised experiences. This is not a new trend and shows no signs of slowing down. Customers increasingly expect experiences that feel tailored specifically to them, and they're quick to notice when this personalisation is missing.
The first step towards meeting these expectations is embracing customer-centricity. This means truly understanding that each of your customers is unique, with their own preferences, behaviours, and needs. Forward-thinking marketers are investing time in learning these individual patterns because they recognise how valuable this knowledge is for building lasting relationships.
Today's personalisation goes far beyond just adding a customer's name to an email. Businesses that excel at loyalty are creating personalised journeys across all their digital channels. They're using customer data thoughtfully to recommend relevant products, offer timely rewards, and anticipate needs before they arise.
The future of personalisation lies in smart technology use. Our research shows it's tied with strategic partnerships as the top investment priority for businesses in 2025. But the aim isn't to replace human interaction. Technology is a key driver of customer loyalty and should be used to better understand customers and deliver experiences that feel natural and relevant to them.
When you get personalisation right, it creates a powerful cycle. Customers who feel understood are more likely to engage with your brand, share more about their preferences, and ultimately become loyal advocates. They might stick around for the rewards, but only become truly loyal when you consistently show that you understand and value them as individuals.
4) Tiered Loyalty Programmes
Adoption of tiered loyalty programmes is gaining momentum, with our research showing 67% of businesses implementing these structured reward systems. It taps into customers' natural desire for achievement and status, encouraging them to climb the loyalty ladder for better rewards.
If you want to implement this tactic, make sure that the rewards and experiences offered at each tier of your loyalty programme are truly special and stand out from the "standard" benefits that customers expect. The result will be happier clients who are more connected and loyal to your brand.
With the incentive to level up and access better rewards, your customers will prioritise your brand over others. If done correctly, it will help you stand out from the crowd and become a consumer favourite.
Tiered loyalty programmes also help businesses quickly identify and categorise their most important consumers. If you segment your members into different tiers, you can use their purchase histories to provide them with personalised promotions and benefits.
When members achieve a high rank, they get recognition for their efforts. Sending a personal message as they progress between tiers is also important to keep them excited.
5) Gamification
Gamification is making waves in customer strategy and will continue to do so.
65% of brands prioritise potential approaches that create strong connections with customers as they seek to interact with them in innovative and relevant ways.
Leveraging game theory to reach the target audience is one approach that is getting plenty of attention. Getting a consumer to join a loyalty programme doesn't necessarily result in sustained involvement, which is the ultimate purpose of such programmes. In today's competitive market, a simple rewards programme isn't enough to inspire true brand loyalty.
This is where gamification can help. Gamification of loyalty programmes, together with offering rewards for actions that are meaningful to customers, is an effective way to increase brand engagement. Customers are more likely to learn and explore when they are rewarded for doing so, and gamification can provide just that.
Customers will appreciate the effort and dedication when you use your loyalty programme to provide instant reward games like scratch to win, peel to reveal, or a reward calendar.
Customers develop a deeper and more profound emotional connection to your brand through a succession of gamified, relevant offerings and experiences that provide numerous ways to obtain different rewards.
6) Increasing use of AI
It's interesting to note that customer experience is where most marketers and companies intend to use AI.
Our research shows that 62% of businesses now invest in AI and machine learning capabilities to elevate the customer experience (CX) in their loyalty programmes.
It helps you develop a comprehensive marketing plan and personalised content for each stage of the buyer's journey. This can help you offer more value to customers and earn their loyalty.
Deep learning algorithms track and log all of this activity. With this data, the deep learning models can evaluate the client persona based on their habits and preferences. In the long run, this helps you make crucial decisions for enhancing consumer loyalty.
It will also allow you to establish value-based customer loyalty programmes for different segments of your target audience. This strategy is beneficial as it helps you design tailored loyalty or incentive programmes that engage with each group.
Incentives and prizes can be dynamically served at tier, cohort, or individual user levels using machine learning and connected data sources to provide a relevant and personalised customer experience.
7) Adoption of mobile-first strategies
Your customers live on their smartphones, and your business strategy needs to reflect this reality. Our research shows that 77% of businesses are adapting to this shift by prioritising mobile experiences in everything they do, from their websites and apps to payment systems and loyalty programmes.
Of the 77% adoption rate, approximately one-third (32% & 31% respectively) consider mobile-first investments to be critical to their roadmap.
Digital wallets perfectly exemplify this mobile transformation. A digital or mobile wallet is an electronic money account that can be loaded with funds and linked to other applications, such as rewards or shopping apps.
Recent research indicates that this payment method will become the standard for making purchases and transferring money.
"The future certainly looks bright for the use of digital wallets. There were 2.6 billion digital wallet users globally in 2020, and this figure is set to reach 4.4 billion in 2025.
Companies are starting to leverage digital wallets to grow their customer base, customer loyalty and enter new market segments"
Financial IT
This surge in usage isn't surprising when you consider how these tools align with modern consumer expectations: quick transactions, seamless rewards integration, and enhanced security.
But a true mobile-first approach goes beyond just accepting digital payments. It means rethinking your entire customer journey through a mobile lens. Your website should load quickly and look great on smaller screens. Your loyalty programme should be easily accessible through a mobile app. Customer support should be available through mobile-friendly channels like in-app chat or SMS.
Creating experiences that are tailor-made for mobile devices makes it easier for customers to engage with your brand. This leads to stronger relationships and increased brand loyalty.
8) Sustainability and green loyalty
Some businesses are still getting used to the idea that prioritising sustainable practices drives loyalty. You can gain the trust of your customers and build long-term connections by embodying sustainability as a brand. 52% of businesses plan to do just that in 2025. Why? Because more shoppers are putting the health of the planet first and expect the brands they patronise to do the same.
"Over 71% of British citizens agree that loyalty programmes should encourage or directly promote environmentally friendly behaviour among customers"
Mando-Connect + YouGov 2022
Take Costa Coffee's approach with its loyalty programme. They've made sustainability practical and rewarding by offering extra points to customers who bring reusable cups. It's a simple idea that makes environmental responsibility part of daily shopping habits.
Your customers want to see real action behind environmental promises. They're looking for programmes that go beyond basic point collection to support genuine environmental initiatives. This might mean offering rewards that directly benefit environmental charities or creating challenges that encourage sustainable practices.
Show your customers that you share their dedication by supporting and encouraging them to engage in sustainable activities. It helps you to create meaningful emotional connections and significantly improve the customer’s experience with your brand. Few things keep customers loyal to a brand like a shared purpose.
9) System Integration and API Strategy
Getting your systems to work together smoothly is becoming crucial for loyalty success. Our research shows 77% of businesses prioritising API and integration investments, yet 81% still find API integration one of their biggest challenges. This tells us something important: while integration is essential, it needs careful planning to get right.
Your loyalty programme doesn't exist in isolation. It needs to connect seamlessly with your CRM system, payment platforms, and e-commerce tools. Think of it as building bridges between different islands of customer data. When these bridges work well, you get a complete picture of how your customers interact with your brand.
The real power comes from unified customer profiles. When your loyalty programme can talk to your CRM system, you can see everything from purchase history to support interactions in one place. This means you can spot patterns in customer behaviour and respond with relevant rewards or offers.
Third-party connections matter too. Your programme should integrate smoothly with payment systems and e-commerce platforms. This makes transactions easier and exploits every opportunity to recognise and reward loyalty, whether someone shops in-store or online.
Analytics integration helps you understand what's working. When your loyalty data connects with your analytics tools, you can track the real impact of your programme on customer behaviour. This helps you make smart decisions about which rewards to offer and how to structure your programme.
10) Focus on Experiential Rewards
The shift towards experiential rewards is gaining momentum, with businesses (74%) incorporating these memorable moments into their loyalty strategies. It's a clear signal that points and discounts alone aren't enough to create lasting connections with your customers.
VIP event access, behind-the-scenes tours, or early product launches create experiences your customers can't simply buy. These moments stand out in people's minds far longer than a standard discount ever could.
The key is making these experiences feel personal. A front-row seat at a concert means more to a music lover than a generic reward. When you match experiences to your customers' interests, you transform a simple reward into a meaningful memory.
The most successful programmes blend different types of experiences. Mix exclusive events with everyday perks that make your customers' lives easier or more enjoyable. This variety helps you appeal to different customer preferences while keeping your programme fresh and exciting.
11) Build vs Buy: Preference for Investing in Outsourced Platforms
The trend towards outsourcing loyalty platforms is clear: our research shows that 69% of businesses prefer investing in outsourced solutions rather than building in-house. This shift reflects a growing understanding that speed to market and proven scalability often matter more than complete customisation.
When you're weighing up whether to build or buy your loyalty programme, consider how quickly you need to launch. Building from scratch might give you total control, but it also means longer development times and ongoing maintenance responsibilities. Our data shows that businesses choosing outsourced platforms typically launch their programmes faster and with fewer technical hurdles.
The cost consideration goes beyond initial development. While building in-house might seem attractive at first, you need to factor in ongoing updates, security maintenance, and technical support. Outsourced platforms spread these costs across many clients, often making them more cost-effective in the long run.
12) Hybrid Loyalty Programmes
Hybrid loyalty programmes are gaining traction, with 68% of businesses now using this flexible approach. These programmes blend digital convenience with physical experiences, creating a more complete customer journey.
When a customer earns points through your mobile app and redeems them for an in-store experience, that's hybrid loyalty in action. It's about meeting your customers wherever they prefer to engage with your brand.
The beauty of hybrid programmes is their flexibility. You can offer digital-only rewards for some members, in-person experiences for others, and a mix for those who want both. This adaptability helps you cater to different customer preferences while maintaining a single, cohesive programme.
Planning for the Future? Grab a Copy of the 2025 Loyalty Uncovered Report
As we've explored, loyalty in 2025 is about creating meaningful connections through personalised experiences, strategic partnerships, and smart technology use. The most successful programmes will be those that adapt to changing customer expectations while maintaining genuine value at their core.
The fundamentals remain unchanged: customers want to feel valued, understood, and rewarded for their loyalty. The difference now lies in how you deliver these experiences. Whether through strategic partnerships, experiential rewards, or hybrid programmes, the key is finding the right mix for your specific audience.
Wondering where to start?
Download the full 2025 Loyalty Uncovered Report today. You'll get detailed insights, practical implementation strategies, and real-world examples from brands that are reshaping the future of customer loyalty.
FAQs
What are the emerging customer loyalty trends anticipated for 2025?
Loyal customers expect instant gratification and personalised offers in 2025. Businesses are focusing on micro-targeting through AI, sustainable practices, and premium loyalty programmes. The emphasis is on creating tailored experiences across multiple communications channels to build trust and increase engagement.
How will AI-driven personalisation impact customer loyalty programmes in 2025?
AI will enable support teams to deliver hyper-personalised experiences by analysing individual preferences and behaviour patterns. This technology helps predict customer needs, automate communications channels, and create targeted offers that increase conversion rates while maintaining genuine human connections.
What role will emotional and experiential loyalty play in customer retention strategies?
Customer experience (CX) is shifting from transactional to emotional connections. Businesses are offering exclusive events, early access, and meaningful experiences to satisfied customers. These tailored experiences create stronger bonds than traditional points-based systems, leading to authentic brand advocacy.
How are sustainability and purpose-driven initiatives influencing customer loyalty?
Sustainability initiatives help build trust with environmentally conscious customers. Programmes that reward eco-friendly choices and support meaningful causes attract new customers while retaining existing ones. Purpose-driven loyalty creates deeper connections through shared values.
What is the significance of subscription-based loyalty programmes in the coming years?
Premium loyalty programmes offering immediate, high-value benefits are gaining traction. While traditional programmes remain free, subscription models provide enhanced experiences and exclusive rewards. This approach increases ROI by converting satisfied customers into brand advocates.
How can businesses enhance data security and fraud controls within loyalty programmes?
Omnichannel security measures protect customer data across all touchpoints. Support teams need robust systems to prevent fraud while maintaining seamless experiences. Regular security audits and transparent communication help build trust with loyal customers.
What are the benefits of implementing tiered loyalty programmes for customer engagement?
Tiered programmes motivate customers through status-based rewards and recognising individual preferences. They help customer service teams identify and reward top spenders while encouraging others to increase engagement. Friends and family referrals often flourish within these structures.
How will omnichannel experiences shape customer loyalty in 2025?
Successful omnichannel experiences connect all communications channels seamlessly. Customer service teams can access unified data to provide consistent support. This integration helps build trust and ensures tailored experiences, whether online, in-app, or in-store.
What are the key metrics for measuring the success of loyalty programmes in the future?
Beyond conversion rates, future metrics focus on emotional loyalty indicators. ROI measurements include customer advocacy, engagement across communications channels, and lifetime value. Micro-targeting effectiveness and satisfied customers' feedback guide programme improvements.
Mark Camp | CEO & Founder at PropelloCloud.com | LinkedIn
Mark is the Founder and CEO of Propello Cloud, an innovative SaaS platform for loyalty and customer engagement. With over 20 years of marketing experience, he is passionate about helping brands boost retention and acquisition with scalable loyalty solutions.
Mark is an expert in loyalty and engagement strategy, having worked with major enterprise clients across industries to drive growth through rewards programmes. He leads Propello Cloud's mission to deliver versatile platforms that help organisations attract, engage and retain customers.
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