The Top Loyalty Program Benefits for Retailers in 2025

TL;DR

• Loyalty programs boost overall revenue by 5–10% and drive repeat business.
• Members spend up to 20% more and shop up to 20% more often than non-members.
• Retailers using personalized rewards and data insights see higher customer engagement.
• 73% of total retail revenue now comes from shoppers who engage with loyalty and retention programs.*
• Loyalty programs create stronger customer connections that turn shoppers into lifelong fans.

It’s easy for shoppers to compare prices and switch brands with just a few clicks today. You can either join the discount race or build a loyalty program that makes customers want to stay for the long haul.

At Voyado, customer loyalty is one of our favorite topics. Because when loyalty programs are done right, they do more than hand out rewards. They build relationships.

They help retailers understand customer behavior, offer meaningful experiences, and inspire repeat purchases.

According to our latest Retail Radar 2025 report, loyalty programs remain one of the strongest drivers of retail growth. In fact, 73% of all retail revenue across the Nordics now comes from customers who engage with marketing and loyalty communications.

That’s a clear sign: the more you connect with your customers, the more they’ll connect with you.

But what are the real loyalty program benefits, and how do they help retailers like you grow smarter, not just bigger?

Why loyalty programs matter more than ever

Shoppers today want more than discounts. They want brands that remember them, understand them, and make every interaction feel personal. That’s where the real loyalty program benefit comes in.

A strong loyalty strategy gives your business more than recurring revenue. It gives you insight. Every purchase, click, and visit tells a story about what your customers value.

With that data, you can personalize offers, reward loyal members, and encourage repeat purchases.

We’ve seen this in action with our customers:

• By Malene Birger increased full-price shoppers by 109% through a personalized onboarding automation.
• Nelly used Voyado to deliver more relevant messages and create seamless omnichannel experiences.
• LAKRIDS BY BÜLOW boosted loyalty and engagement by connecting in-store and online customer data to offer more meaningful rewards.

But what is brand loyalty? To benefit from your loyalty program, you need to understand how emotional connection drives customer loyalty and long-term growth.

Here’s why loyalty programs are important for your business:

• They help you understand your customers and act on real data.
• They increase customer loyalty and repeat purchases.
• They build lasting relationships that boost your customer engagement and bottom line.

Loyalty is how you can build meaningful, long-term relationships that keep your customers engaged, happy, and coming back for more.

So how does a loyalty program actually deliver these results? Let’s look at the key benefits your business can unlock when you invest in loyalty done right.

3 core loyalty program benefits

Every loyalty program looks different, but the goal is always the same. You want to keep your customers coming back.

When you understand their needs, preferences, and behavior, you can create experiences that feel personal and rewarding.

Here are the three core loyalty program benefits your business can expect when it’s built on insight and connection.

1. Customer data: the foundation for personalization

Your customers share valuable information every time they shop, browse, or redeem points.

With the right loyalty program in place, that data becomes your most powerful growth tool. You can identify trends, understand individual customer preferences, and tailor your communication accordingly.

For example, when you know a customer’s favorite category or buying pattern, you can send personalized offers that feel relevant instead of random.

This kind of experience keeps them engaged and helps your business stay top of mind.

2. Customer retention: giving people a reason to return

Retention is where the real value of loyalty programs comes to life. By recognizing and rewarding loyal members, you build trust and make each interaction more meaningful.

The right loyalty strategy keeps your customers interested long after the first purchase and gives them a reason to choose you over competitors.

Creating consistent, thoughtful experiences is one of the most effective ways to increase customer loyalty.

When you show customers that you understand their needs and value their time, they’ll keep coming back because they want to, not because they have to.

3. Customer lifetime value: turning engagement into growth

When customers feel seen and valued, they naturally spend more and visit more often. That’s how loyalty programs increase customer lifetime value and help you grow profit margins over time.

They make it easier to identify your most loyal members and reward customers based on their activity. Your teams can then design personalized benefits, like early access to collections, free shipping, or special invitations to in-store events.

These exclusive experiences not only drive repeat purchases but also turn satisfied shoppers into long-term brand advocates.

When your loyalty program is built on insight, personalization, and genuine care for your customers, it becomes more than a marketing tool.

It becomes part of how your brand earns trust.

Now that you know the core loyalty program benefits, let’s look at how to take them even further with rewards and experiences that keep your customers excited to engage with your brand.

Bonus loyalty benefits you shouldn’t overlook

The core benefits are essential, but here’s where you can go one step further.

We’ve got a few pro tips on the bonus loyalty program benefits that can make your brand stand out and win against your competitors.

These ideas are simple to apply, yet they can have a significant impact on customer loyalty and engagement when done right.

Personalized rewards

Personalized rewards turn loyalty programs from transactional to emotional. Instead of generic points or discounts, customers receive loyalty rewards tailored to their individual preferences and behavior.

How you can implement it:

Use customer data to map purchasing patterns and create meaningful connections. Segment your audience based on loyalty tiers or spending habits.

Then offer rewards that reflect what they care about most, like product recommendations, early access to sales, or exclusive benefits for loyal members.

How you’ll know it’s working:

You’ll see higher redemption rates, more frequent purchases, and better engagement across campaigns. Loyal customers will respond faster to personalized offers because they feel understood.

Exclusive access and experiences

Successful loyalty programs create moments that feel special. Exclusive access to events, limited-edition products, or behind-the-scenes content turns customers into brand advocates.

How you can implement it:

Set up members-only experiences that reward your most loyal customers. Offer early access to new collections, VIP shopping events, or loyalty rewards that reflect your brand values. Even small touches, like free shipping or birthday gifts, can build trust and excitement.

How you’ll know it’s working:

You’ll notice stronger engagement from loyalty program members, more user-generated content, and repeat customers who talk about your brand because they feel part of something exclusive.

Seamless omnichannel experience

Modern customer loyalty programs aren’t limited to one channel. Shoppers expect to earn rewards, redeem points, and access benefits wherever they engage, whether it’s online, in-store, or on mobile.

How you can implement it:

Connect your loyalty program with your customer relationship management tools to unify customer insight. Make it easy for customers to access their loyalty benefits and earn points with every interaction.

How you’ll know it’s working:

Program participation rate increases, more customers redeem rewards across multiple channels, and profit margins improve as long-term customer relationships grow stronger.

These extra loyalty benefits don’t just enhance the customer experience; they make your loyalty program unforgettable.

When your members feel seen, valued, and rewarded, you’re no longer competing on price. You’re building loyalty that lasts.

Now you just need to create your process. Here’s how:

Step-by-step guide on how to build a more effective loyalty program

Step 1: Set clear goals

Start with a purpose that connects to your brand values. We often see retailers launch loyalty programs without a defined outcome, which makes it hard to measure success. Decide if your focus is customer retention, lifetime value, or membership growth, and let that guide every decision you make.

Step 2: Collect and use customer data wisely

Customer data is the backbone of any successful loyalty program. Use it to understand purchasing patterns and personalize communication. Retailers using Voyado often discover new customer segments they didn’t even know existed, which leads to more relevant offers and stronger engagement.

Step 3: Create a consistent experience across all channels

Omnichannel is vital – not an option. Customers expect their loyalty benefits to follow them everywhere: in-store, online, and through push notifications or emails. The most successful loyalty programs connect marketing and in-store teams, ensuring every customer interaction feels unified.

Step 4: Reward your most loyal members in meaningful ways

Go beyond points and discounts. Surprise loyal members with early access to new launches, tier-based perks, or exclusive events that reflect your brand values. A great loyalty program shows appreciation, not just incentives. That’s what creates genuine brand loyalty.

For example, Voyado customer Webhallen shared in Love Generation 2025: Designing experiences that matter, how they turned loyalty rewards into experiences that feel personal.

Their program gives members early access to exclusive product drops, gaming events, and community competitions that align with their customers’ shared passions.

These kinds of rewards do more than encourage repeat purchases. They build emotional loyalty and make your customers feel part of something bigger than a transaction. That’s what separates a good loyalty program from a great one.

Step 5: Measure, refine, and evolve

Customer behavior changes fast, so your program should too. Track redemption rates, participation, and repeat purchases regularly. If certain rewards or messages underperform, test and adjust. The retailers who keep iterating based on insight see the biggest lift in customer engagement and profit margins over time.

Building a loyalty strategy takes time, but every improvement you make, even small ones, can have a significant impact on your bottom line.

What will happen if you get this right

When your loyalty program works as it should, the impact is clear. Here’s what success looks like in practice:

• Customers engage with your brand more often and with real intention.
• Participation and repeat business increase as loyalty members stay active.
• Customer lifetime value rises because loyal customers spend more, more often.
• Loyal members become brand advocates, bringing in new customers through word of mouth.
• Profit margins improve as acquisition costs drop and existing relationships deepen.
• Your brand becomes part of your customers’ everyday lives, not just another store they shop at.

That’s when loyalty stops being a marketing channel and turns into something stronger: a genuine connection between your brand and the people who believe in it.

How to turn loyalty into lasting growth

You’ve learned how to build, personalize, and grow a loyalty program that truly connects with your customers. Now it’s over to you. Here are three steps to get started:

1. Audit your current loyalty program. Look at participation, redemption rates, and communication consistency. Identify what’s working and where the gaps are.
2. Gather and connect your data. Make sure your customer insights are accessible across marketing, CRM, and in-store teams so you can act fast and personalize effectively.
3. Plan one quick win. Choose a simple improvement (like early access for loyal members or more personalized rewards) and test the impact within a month.

If you focus on delivering value, connecting data, and treating every interaction as a chance to deepen the relationship, you’ll build a loyalty program that keeps customers coming back and your teams proud of what they’ve created.

Ready to see what this could look like for your business?

Book a demo to explore how Voyado can help you design a loyalty program that turns everyday shoppers into lifelong fans.