What Consumers Want from Loyalty Programs 2025

Part 1: the urgent loyalty opportunity

The loyalty opportunity has never been greater – so act now!

LoyaltyLion’s new research shows that consumers are super keen on loyalty programs today, say they’re easier to use than ever, and dictate their go-to brands when consumer confidence is low.

1. Consumers want to be part of loyalty programs today…

Loyalty programs definitively – and increasingly – influence consumers’ decisions to make a repeat purchase from brands:

A huge 85% of consumers say a loyalty program influences their decision to repeat purchase from the same brand
That’s most true for Gen Z: almost all (95%) 16-25 year-olds say it influences their purchasing decisions
59% of consumers are more likely to sign up to a loyalty program now than 12 months ago

Don’t have a program? Consumers will go and find another brand that does, making it more expensive for you to win them over in future.

Got one? Don’t rest on your laurels. Your competitors likely also have a program, according to our previous research. So, the time to improve yours is now.

Dive into the detail

57%
feel more emotionally connected to brands they are members of than they used to
71%
of those surveyed say they are a member of 1-3 ecommerce loyalty programs today vs 58% 12 months ago
10%
of consumers say they do not actively engage with any loyalty programs they are members of

What the experts say

– Jason Leader, Principal Onboarding Manager, LoyaltyLion

Not sure if a loyalty program is for you? This data reminds us that ecommerce brands are sitting on a goldmine of customers who WANT to be loyal to them. It’s just a case of having the tools to enable that.

Wondering how much revenue your loyalty program could actually drive from them? Our new calculator will give you a personalized forecast.

Forecast my loyalty revenue

2. They like how easy today’s loyalty programs are to use…

Consumers are finding it easier than ever to use loyalty programs.

Two-thirds (65%) say loyalty programs are easier to use than they used to be
Over four-fifths (82%) say it’s easy to join a loyalty program today
78% agree it’s easy to understand how many loyalty points and rewards they have

Nice one. Legacy, complex programs that make it hard to earn and redeem rewards are a thing of the past – how times have changed!

But watch out: Too many consumers still need to contact support – especially in the Boomer generation. Make sure you’re serving these customers too.

Dive into the detail

78%
agree it’s easy to understand how many loyalty points and rewards they have
42%
of consumers have contacted support for help with a loyalty program in the past 12 months
27%
of consumers say they’ve had trouble redeeming rewards – the most common of all support tickets

What the experts say

– Alexandra Zaharia, Customer Support Executive

Lots of ecommerce brands now have loyalty programs, but what differentiates the best? Quality.

An FAQ page is vital, as are clear instructions on earning points and redeeming rewards. Share regular email comms to ensure customers are crystal clear on the process.

Check out a quality example below – Nanso.

3. Plus, loyalty programs dictate their go-to brands when consumer confidence is low.

Loyalty programs help mitigate the impact of economic turmoil on brands.

The vast majority (77%) will prioritize brands they’ve shopped with before during a time of economic uncertainty
Almost two-thirds (64%) of consumers will prioritize brands that have loyalty programs during a time of economic uncertainty.

Take a step back: If you didn’t have a loyalty program in place to help you navigate the economic turbulence caused by tariffs, you’ll definitely want to get one in place before the next consumer confidence crisis hits.

Dive into the detail

81%
of Millennials will prioritize brands with loyalty programs during a time of economic uncertainty
61%
of Boomers are more likely to join a loyalty program during a time of economic uncertainty
74%
will prioritize shopping with brands where they know customer service is good during a time of economic uncertainty

What the experts say

– Hannah Gill, Partnerships Executive, LoyaltyLion

When acquisition is tough, being able to rely on retained customers isn’t just a nice-to-have – it’s crucial for maintaining revenue growth.

Loyalty programs have the power to supercharge retention – particularly during a time of low consumer confidence – so strengthen them today.

8 loyalty tips when confidence is low

Value, delivered intelligently

Revenue growth through retention happens when you use data well

Shoppers want the perfect combo of financial and experiential rewards, and they are willing to give their data to earn those rewards, but brands aren’t good enough at using that data yet.

1. Shoppers will willingly exchange their data for points…

Consumers respond well to all kinds of points-earning rules that offer a good value exchange for their data.

61% of shoppers would happily earn points by following you on social media
4 in 5 (79%) consumers say they’d create an account to earn points
78% are happy earning points by completing a quiz or profile and 73% by downloading an app

Good news for your marketing goals: these social, email and SMS activities help you connect with shoppers between purchases and encourage them back to your site.

Be strategic: With referring friends or subscribing to products slightly less popular, respond by offering more points for these activities.

Dive into the detail

2x
more Gen Z and Millennials would subscribe to a product to earn points, compared to Boomers
79%
of Millennials would be happy earning points by following on social, compared to only 35% of Boomers
6%
more US shoppers would sign up for SMS messages to earn points, compared to UK shoppers

What the experts say

– Sammy Newton, Onboarding Manager, LoyaltyLion

Many ecommerce brands will be thinking about the shoppers of the future – but tap into the right activities and you’ll unlock repeat purchase potential of every shopper, regardless of generation.

For instance, Boomers are keen to create an account, complete a quiz, sign up to a newsletter, or leave reviews – so incentivize these with points.

Want more strategies to secure the best revenue growth for your target demographic whilst keeping consumers happy?

Chat to our experts today

2. They want the perfect combo of financial and experiential rewards…

High-performing loyalty programs feature a combination of financial and experiential rewards.

85% of consumers are motivated by discounts and money off
72% of shoppers are motivated to enrol by early access to sales
85% say free or discounted shipping is an important factor in a loyalty program

Hot take: Customer experience and emotional connection are just as important as a discount, particularly to the younger generations.

That’s great news: Lean on rewards that cost less to deliver and protect your profit margins, but are a great value exchange for fans.

Dive into the detail

80%
say brands are effectively delivering on their discount rewards
84%
say free product rewards are an important loyalty benefit
78%
of Millenials say they value early access to products – the most of all generations

What the experts say

– Adam Driscoll, Senior Customer Success Manager, LoyaltyLion

What can you offer that means a lot to your members, but doesn’t cost you the world?

How about member-only designs, or access to a product workshop? Or try personal styling sessions, like Never Fully Dressed – it’s one of their most popular benefits for top-tier members.

Read their story

3. But brands aren’t good enough at using data to personalize offerings yet.

The data shows room for improvement in loyalty program data usage – both for personalization and privacy.

Only 61% say that they receive a more personalized experience as a loyalty program member.
Just 58% agree that the data they share with brands via loyalty programs is used responsibly
Only 59% agree that the loyalty emails they receive are personalized

Loyalty program owners can use points-incentivized quizzes and profile creations to gather data from willing customers, helping deliver personalization amid privacy rules that make it harder to collect that data than ever before.

Ask yourself: Are you personalizing everything you can, as effectively as you can? Your product recommendations, emails and SMS messages (through ESP integrations like Klaviyo and Attentive) are a good place to start.

Dive into the detail

71%
of Gen Z shoppers feel they are receiving a personalized experience, much more than Gen X and Boomers
44%
of Boomers believe their data is used responsibly by loyalty programs
78%
of shoppers say they would complete a quiz or profile in exchange for loyalty points

What the experts say

– Freya Morrison, Onboarding Manager, LoyaltyLion

Use the zero-party data you gain from a loyalty program more wisely – it’s a goldmine of opportunity!

The INKEY List is a great example – their hair and skincare quizzes are incentivized with loyalty points and produce personalized recommendations sent to members’ emails. This approach sees the loyalty program drive a quarter of the brand’s revenue.

Learn how

Loyalty whenever, wherever

It pays to help customers be loyal whenever, wherever

Customers want to use your loyalty program wherever they shop with you, and whenever they shop, especially in key sales periods, but we’re a while off from consumers being willing to pay for perks.

1. Customers want to use your loyalty program wherever they shop with you…

There is significant appetite for great loyalty program experiences in-store and on mobile.

79% of consumers say it’s important to be able to use their loyalty program memberships in-store
75% say they think brands are doing this effectively already
74% say that a consistent loyalty experience online and in-store is important to them

Get ahead or fall behind: Consumers have noticed brands are already improving in-store loyalty experiences. Don’t miss out on the opportunity to stay ahead by integrating your POS and loyalty program.

The personal touch: Ensure you can give points and rewards at checkout, and give store assistants the ability to see a member’s VIP tier status for a more personalized experience.

Dive into the detail

57%
say the ability to jump the queue is an important loyalty program benefit
73%
say they would sign up to an app in exchange for loyalty points
54%
say invitations to exclusive in-store events motivate them to enroll in a loyalty program

What the experts say

– Hannah Yaffe, Senior Customer Success Manager, LoyaltyLion

If you’ve got a loyalty program and it doesn’t connect to your brick-and-mortar stores or mobile app, customers will wonder why.

Integrations are key to ensure customers can earn points and redeem rewards however they choose to shop.

Check out these links to see why top-performing loyalty programs use integrations with Shopify POS and mobile app builders like Venn Apps and Tapcart.

2. Shoppers want to use programs whenever they shop, especially in peak periods…

It’s good news for brands with loyalty programs: shoppers (and particularly younger generations) lean towards brands and products they know and trust during sales.

65% say they are more likely to shop with brands that they have purchased from previously, during a sales period compared to other times of the year
Younger shoppers are more likely to join a loyalty program during a sale: 73% of Gen Z and 47% of Millennials contrasting 57% of Gen X and 42% of Boomers
72% of consumers say they’re more likely to enrol in a loyalty program during peak periods

Set yourselves up for success: Enrolling people ahead of the sales so they can collect points to spend during the likes of BFCM is key.

Give the VIP treatment: Special offers and discounts are important, so finding a way to tier them or offer the biggest discounts to your most valuable customers is key to protecting profit margins.

Dive into the detail

60%
are more likely to join a loyalty program during a sales period like Black Friday compared to other times of year
66%
are more likely to visit stores where they have loyalty points/rewards to redeem during a sales period
54%
say they are more likely to open emails from retail brands over a sales period

What the experts say

– Hannah Parker, Principal Customer Success Manager, LoyaltyLion

Leverage your loyalty program strategically during peak periods: ensure customers are enrolled beforehand and have points to spend with you, and help them earn more points during the sales themselves so they come back to shop with you again.

A double points BFCM promo could make that repeat purchase even more likely.

Get Black Friday Cyber Monday tips

3. But we’re a while off from consumers being willing to pay.

Younger audiences are more open to the idea of payment for loyalty programs than previous generations – but only if the value exchange is right.

44% of shoppers surveyed say they are more likely to pay to join a loyalty program now than 12 months ago
Yet only 34% say they would pay to join a loyalty program
68% of Boomers would not pay to join a program, compared to just 19% of Millennials

Proceed with caution: This is still an emerging trend. Plus, if you charge more than $20, it’s unlikely you’ll drive enrollments.

Dive into the detail

46%
of shoppers say they would not pay to join a loyalty program
50%
of men say they are more likely to pay to join a loyalty program than 12 months ago vs 39% of women
17%
of consumers would pay more than £15 / $20 a month to be part of a loyalty program

What the experts say

– Luana Stoica, Onboarding Team Lead, LoyaltyLion

Consumers are warming up to the idea of paying for loyalty programs. But, as the data reveals, there’s a lot to get right before you can expect a consumer to part with their cash.

The great news? Free programs are already driving incredible revenue growth for brands.

Check out our success stories

100+ loyalty stats

100+ new stats on what shoppers really want from loyalty programs

Stats on loyalty programs during BFCM

60% of consumers are more likely to join a loyalty program during a sales period like BFCM than at other times of year
73% of Gen Z say they are more likely to join a loyalty program during a sales period like BFCM than at other times of year
74% of Millennials say they are more likely to join a loyalty program during a sales period like BFCM than at other times of year
66% are more likely to visit stores where they have loyalty points/rewards to redeem during a sales period compared to other times of year
74% of Gen Z are more likely to visit stores where they have loyalty points/rewards to redeem during a sales period compared to other times of year
76% of Millennials are more likely to visit stores where they have loyalty points/rewards to redeem during a sales period compared to other times of year
67% of consumers are more likely to redeem loyalty points/rewards during a sales period than during other times of the year
76% of Gen Z consumers are more likely to redeem loyalty points/rewards during a sales period than during other times of the year
77% of Millennial consumers are more likely to redeem loyalty points/rewards during a sales period than during other times of the year
65% say they are more likely to shop with brands that they have purchased from previously during a sales period compared to other times of the year
76% of Gen Z say they are more likely to shop with brands that they have purchased from previously during a sales period compared to other times of the year
75% of Millennials say they are more likely to shop with brands that they have purchased from previously during a sales period compared to other times of the year

Stats from LoyaltyLion’s data on BFCM 2024

BFCM 2024 saw a 119% increase in new loyalty program members compared to a typical weekend
BFCM 2024 saw a 119% increase in redeeming members over BFCM 2024 vs typical weekend
BFCM 2024 saw 45% more rewards used than over a typical weekend
BFCM 2024 saw 104% more checkout redemptions than an average weekend (74% more than BFCM 2023)
BFCM 2024 saw 304% more free shipping vouchers used than average weekend (60% more than BFCM 2023)
BFCM 2024 saw 330% more newsletter signups than an average weekend
BFCM 2024 saw 746% more referrals than an average weekend
BFCM 2024 saw 128% more social follows than an average weekend
BFCM 2024 saw 454% more custom earning activities than an average weekend

Stats on loyalty program usage during tariffs and economic uncertainty

Active loyalty program members are 4x more likely to repeat purchase than non-members when confidence is low
Revenue from redeeming program members is nearly 3x more stable during economic uncertainty
71% are more likely to join a loyalty program during a time of economic uncertainty
76% of Gen Z consumers say they are more likely to join a loyalty program during a time of economic uncertainty
81% of Millennial consumers say they are more likely to join a loyalty program during a time of economic uncertainty
64% will prioritize shopping with brands that have loyalty programs during a time of economic uncertainty
75% of Gen Z consumers will prioritize shopping with brands that have loyalty programs during a time of economic uncertainty
74% of Millennial consumers will prioritize shopping with brands that have loyalty programs during a time of economic uncertainty
77% will prioritize brands they’ve shopped with before during a time of economic uncertainty
74% will prioritize shopping with brands where they know customer service is good during a time of economic uncertainty

Loyalty stats

59% of consumers say they are more likely to sign up to a loyalty program now than 12 months ago
71% of Gen Z consumers say they are more likely to sign up to a loyalty program now than 12 months ago
72% of Millennial consumers say they are more likely to sign up to a loyalty program now than 12 months ago
85% of consumers say a loyalty program influences their decision to repeat purchase from the same brand
95% of Gen Z consumers say a loyalty program influences their decision to repeat purchase from the same brand
95% of Millennial consumers say a loyalty program influences their decision to repeat purchase from the same brand
71% of Gen Z consumers say they feel more emotionally connected to brands if they are a loyalty program member
71% of Millennial consumers say they feel more emotionally connected to brands if they are a loyalty program member

Stats on loyalty program rewards

77% of members say they regularly redeem the rewards they earn
58% say invitations to exclusive in-store events are an important loyalty program benefit
54% say invitations to exclusive in-store events motivate them to enroll in a loyalty program
57% say the ability to jump the queue is an important loyalty program benefit
88% of consumers consider financial rewards/discounts an important loyalty program benefit
85% of consumers consider free shipping an important loyalty program benefit
84% of consumers consider free product rewards an important loyalty program benefit
72% of consumers consider early access to sales an important loyalty program benefit
67% of consumers consider early access to new products an important loyalty program benefit
77% of consumers consider specific subscriber benefits an important loyalty program benefit
71% of consumers consider priority customer support an important loyalty program benefit
71% of Gen Z consider personalized recommendations an important loyalty program benefit
72% of Millennials consider personalized recommendations an important loyalty program benefit

Stats on loyalty program points

79% of consumers say they will create an account to earn points
70% of consumers say they will leave a review to earn points
61% of consumers say they will make a referral to earn points
73% of Gen Z consumers say they will make a referral to earn points
76% of Millennial consumers say they will make a referral to earn points
61% of consumers say they will follow a brand on social to earn points
77% of Gen Z consumers say they will follow a brand on social to earn points
79% of Millennial consumers say they will follow a brand on social to earn points
70% of consumers say they will sign up to a newsletter to earn points
63% of consumers say they will sign up to SMS to earn points
74% of Gen Z consumers say they will sign up to SMS to earn points
77% of Millennial consumers say they will sign up to SMS to earn points
73% of consumers say they will download an app to earn points
82% of Gen Z consumers say they will download an app to earn points
83% of Millennial consumers say they will download an app to earn points
78% of consumers say they will complete a quiz or profile to earn points
79% of Gen Z consumers say they will complete a quiz or profile to earn points
84% of Millennial consumers say they will complete a quiz or profile to earn points

Omnichannel loyalty stats

76% say being able to use a loyalty program in-store is important to them
72% say the ability to access a loyalty program on mobile is important to them
74% say that a consistent loyalty experience online and in-store is important to them

Paid loyalty program stats

46% of shoppers say they would not pay to join a loyalty program
44% of shoppers say they are more likely to pay to join a loyalty program than 12 months ago
27% would pay less than £7.50/$10 per month, 16% would pay $10 – $20 per month, only 17% would pay more than $20

Loyalty program ease-of-use stats

82% say it’s easy to join a loyalty program
76% of Gen Z say it’s easy to join a loyalty program
85% of Millennials say it’s easy to join a loyalty program
82% of Boomers say it’s easy to join a loyalty program
78% say it’s easy to log into a loyalty program
76% of Gen Z say it’s easy to log into a loyalty program
82% of Millennials say it’s easy to log into a loyalty program
74% of Boomers say it’s easy to log into a loyalty program
78% say it’s easy to understand how many points and rewards they have
77% of Gen Z say it’s easy to understand how many points and rewards they have
84% of Millennials say it’s easy to understand how many points and rewards they have
74% of Boomers say it’s easy to understand how many points and rewards they have
70% say it’s easy to understand what tier they’re in
74% of Gen Z say it’s easy to understand what tier they’re in
79% of Millennials say it’s easy to understand what tier they’re in
69% of Boomers say it’s easy to understand what tier they’re in
69% say it’s easy to understand what perks are available in each loyalty tier
70% of Gen Z say it’s easy to understand what perks are available in each loyalty tier
79% of Millennials say it’s easy to understand what perks are available in each loyalty tier
61% of Boomers say it’s easy to understand what perks are available in each loyalty tier
76% say it’s easy to understand how to use loyalty rewards
74% of Gen Z say it’s easy to understand how to use loyalty rewards
83% of Millennials say it’s easy to understand how to use loyalty rewards
72% of Boomers say it’s easy to understand how to use loyalty rewards
77% say they regularly redeem rewards
77% of Gen Z say they regularly redeem rewards
81% of Millennials say they regularly redeem rewards
73% of Boomers say they regularly redeem rewards