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2025 State of Customer Loyalty: Insights from Brand Marketers and Loyalty360

by
Baesman
tags CRM & Analytics loyalty program

The 2025 State of Customer Loyalty report from Loyalty360 is here and it paints a vivid picture of where loyalty strategies stand today and where they’re headed next. Based on input from over 100 brand marketers, the report outlines what’s working, what’s evolving, and what’s keeping marketers up at night.

Loyalty Is No Longer Just a Program—It’s a Business Strategy

More than ever, loyalty is a driver of long-term growth, not just a marketing lever. While interest in revamping loyalty programs has slightly declined from 2024 (64% in 2025 vs. 79% in 2024), the shift reflects a maturing market. Brands are now focused on optimizing and operationalizing previous enhancements instead of starting from scratch.

And the momentum is still strong:

2025 Loyalty Trends: Personalization, Gamification, and Experiences

Marketers are leaning into digital innovation, experience-based rewards, and hyper-personalization to meet rising consumer expectations. The top five enhancements brands are prioritizing in 2025 are:

  1. Enhanced personalization* (68%)

  2. Gamification (64%)

  3. New reward options (58%)

  4. Improved digital experience (58%)

  5. Brand-to-brand partnerships (51%)

It’s clear: consumers want loyalty programs that are rewarding, interactive, and tailored to their unique needs and preferences.

*In our playbook, 5 Strategies to Build Loyalty and Maximize Revenue, we discuss how to unlock the power of customer data by eliminating scattered data and silos to gain a true 360-degree perspective of customers. This shows marketers when a customer is most engaged, what motivates them to take action, and why high-value customers keep coming back. This insight allows brands to enhance personalization so they can shift from reactive to proactive marketing and reward them at the perfect moments.

 

The first step is making sure the data is correct. The worst thing you can do is start doing personalized journeys when you don't actually have a clear view of the customer.

- Kim Welther, VP, Customer Engagement Strategy

  Baesman Group 

 

Loyalty That Goes Beyond Points

Brands are embracing experiential and emotionally driven rewards to build deeper connections. Over half (52%) are prioritizing experiential rewards like travel and exclusive events. Other high-ranking reward types include:

  • Tiered/VIP rewards (47%)

  • Partner brand rewards (44%)

  • Instant win and surprise-and-delight offers (38%)

This pivot to emotional loyalty shows that meaningful engagement now often matters more than transactional benefits.

 

 

The Role of AI and Data: Opportunities and Roadblocks

AI is gaining traction but is still in early adoption across the loyalty landscape:

  • 49% of brands are exploring AI use cases.

  • 29% are using AI for content creation.

  • 26% are using AI for segmentation and personalization.

Yet, data challenges persist. The top data-related opportunity cited by 43% of respondents? Collecting the right customer data and attributing it correctly. Without that foundation, AI and advanced personalization efforts hit a wall.

Top Challenges: Technology, Resources, and Measurement

Despite the optimism, marketers face several hurdles:

  • 57% cite technology limitations as a top challenge.

  • 54% report integration difficulties.

  • 35% struggle with staffing and budget constraints.

  • 30% struggle to define or measure emotional loyalty.

And while most brands feel their programs are performing well, one-third still lack the KPIs needed to truly measure impact.

What This Means for Brands

The report highlights several key priorities for brands looking to evolve and thrive:

  • Differentiate through experiential and gamified rewards.

  • Invest in modern platforms that integrate easily across channels.

  • Focus on real-time, personalized experiences.

  • Strengthen data strategy and identity resolution.

  • Benchmark performance and communicate ROI effectively.

Final Thoughts

Loyalty in 2025 is no longer about checking boxes, it’s about creating real value, emotional resonance, and long-term engagement. As the report underscores, loyalty programs that prioritize personalization, data-driven strategy, and brand alignment will rise above the noise.

Brands that treat loyalty not just as a program, but as a purpose, will build stronger communities, deeper trust, and more loyal customers.

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by
Baesman
tags
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