How much does it cost to run a loyalty program

How much does a loyalty program cost in 2025? Monthly fees range from $12 to $78, with setup costs from $1,000 to $225,000 based on business size.
How much does it cost to run a loyalty program

You want to know how much a loyalty program costs in 2025. Most businesses pay each month. Small teams pay $12, while big businesses with many locations pay $78. This is when they use platforms like Loyally AI. If you want more features, yearly costs can be $936. The price depends on your company size, your industry, and the type of program. The table below shows what you might pay for a customer loyalty program:

Plan

Target Business Size

Monthly Cost

Key Features Summary

Essential

Small business

$12

Unlimited cards, CRM, analytics, 1 location

Growth

Growing business

$24

All Essential features + 3 locations

Premium

Multi-location

$78

All Growth features + 10 locations, custom integrations, branding

The chart below shows the monthly costs for small, growing, and multi-location businesses in 2025, helping you understand how much does a loyalty program cost based on your specific needs.

Key Takeaways

  • Loyalty program costs change based on business size. Small businesses can pay as little as $12 each month. Big companies might pay $500 or even more.

  • Think about both monthly and yearly costs. Yearly plans can save money. But you also need to plan for rewards, marketing, and support costs.

  • Starting a program can cost a lot. Small businesses might spend about $1,000 to start. Big companies could pay between $50,000 and $500,000 at first.

  • Pick a loyalty platform that matches what you need. Loyally AI has plans that help you save money. It gives you important features without big setup fees.

  • Watch out for extra costs. Things like technology, training, and support can cost more. Make sure you plan for every part of your loyalty program.

How much does a loyalty program cost in 2025

Monthly and Annual Costs

You might wonder how much a loyalty program costs each month and year. Most platforms ask you to pay a subscription fee. This fee lets you use their software and tools. For small businesses, the monthly cost starts at $12 with Loyally AI. If your business is bigger, you might pay up to $78 each month for more features and locations. Other platforms can charge between $59 and $79 per month for basic or pro plans. Some enterprise solutions have special deals, like $75 per month for the first six months.

Annual costs can add up fast. If you pick Loyally AI's Premium plan, you pay $936 each year. Some platforms give discounts if you pay for a whole year instead of each month. You also need to plan for rewards, marketing, and support. These costs can change depending on what your business needs.

Here is a table that shows common monthly and yearly costs for loyalty programs in 2025:

Business Size

Monthly Cost Range

Annual Cost Range

Small business

$12 – $59

$144 – $708

Growing business

$24 – $79

$288 – $948

Multi-location/Enterprise

$78 – $500+

$936 – $6,000+

Tip: Save money by picking a plan that fits your business size and only paying for the features you really need.

Setup and Initial Fees

You should think about setup costs when starting a loyalty program. These costs include technology, software, marketing, staff, and equipment. Some platforms, like Loyally AI, keep setup fees low. You pay about $1,000 to set up with Loyally AI. Other platforms, like HubSpot Service Hub, can charge $10,000 or more.

If your business is large, your setup costs can be much higher. You might spend $50,000 to $500,000 at the start for enterprise solutions. The total cost of ownership includes these first costs plus the regular fees.

Here is a table that shows usual setup costs for loyalty programs in 2025:

Cost Component

Min Amount

Max Amount

Technology & Software

$20,000

$50,000

Office Space & Utilities

$10,000

$30,000

Licensing & Compliance

$5,000

$15,000

Marketing & Acquisition

$15,000

$40,000

Staffing & Payroll

$25,000

$60,000

Equipment & Supplies

$8,000

$20,000

Contingency & Miscellaneous

$5,000

$10,000

Total

$88,000

$225,000

Bar chart comparing minimum and maximum setup fees for loyalty program cost components in 2025

Note: Loyally AI has low setup fees and needs less technical help than many other platforms.

Cost by Business Size

The price of a loyalty program depends on your business size. Small businesses pay less because they need fewer features and less help. You might pay $12 each month for a basic plan. If you have a mid-market brand, you pay a medium subscription fee and steady rewards costs. Large businesses pay much more. You could spend $50,000 or more at the start and have a big ongoing budget.

Here is a table that shows how much a loyalty program costs based on business size:

Business Size

Setup Cost Range

Monthly Cost Range

Small businesses

Minimal

Modest subscription + rewards and marketing

Mid-market brands

Moderate

Moderate subscription + predictable rewards

Enterprise / high-volume

$50,000–$500,000+ up front

Significant ongoing budget

The total cost of ownership goes up as your business grows. You need to think about how complex your program is, how many customers you have, and what integrations you need. If you want special features, like custom rewards or global use, your costs will go up.

Things that affect the cost of a loyalty program are:

  • Program complexity (more features mean higher cost)

  • Customer base size (serving more people costs more)

  • Deployment type (local or global)

  • Integration needs (connecting to POS or CRM systems)

  • Reward structure (better rewards cost more)

  • Compliance needs (security and privacy rules)

You can manage the total cost of ownership by picking a platform like Loyally AI. You get the main features, easy setup, and clear pricing. You avoid high setup costs and big ongoing fees.

If you want to know how much a loyalty program costs for your business, start by listing what you need and match it to the right plan.

Loyalty program costs breakdown

Loyalty program costs breakdown
Image Source: pexels

When you make a loyalty program, you need to know the main costs. Each part of your budget helps your loyalty program work well.

Platform Fees (Loyally AI)

You pay platform fees to use software like Loyally AI. These fees let you use digital loyalty cards, CRM tools, PUSH notifications, and analytics. Loyally AI keeps prices low for small businesses, starting at $12 each month. If you want more features or more locations, you pay up to $78 each month. These fees help you run your loyalty program easily and stop you from paying for custom software.

Marketing Expenses

Marketing expenses help you tell people about your loyalty program. You spend money on social media ads, email messages, and in-store signs. Good marketing brings in more customers and keeps your program busy. You should plan how much to spend on marketing every month to reach your goals.

Staffing Costs

Staffing costs are important for your loyalty program. You need workers to help customers, renew accounts, and teach new users. In 2025, these costs can be a big part of your budget. You should check staffing costs with other expenses to make sure your loyalty program works well.

Rewards Budget

Your rewards budget is for points, discounts, cashback, or gifts for customers. You need to plan how much to spend on rewards so your program is fun but not too expensive. The right rewards make people come back and help customer loyalty grow.

Compliance and Security

You must keep your loyalty program safe and follow privacy laws. Businesses use AI tools, blockchain, and biometric checks to protect customer data. You should have security checks every three months. Training helps your team spot fraud and handle data the right way.

  • Use strong security tools for your loyalty program.

  • Have security checks every quarter.

  • Train workers to spot fraud and manage data.

Analytics Tools

Analytics tools help you see how your loyalty program is doing. You can find out which rewards work best and how customers use your program. Some tools cost $39 each month, while others cost more for extra features. Here is a table with popular analytics tools and their starting prices:

Tool

Starting Price

Features

Robust Branding

$39/month

Integrated analytics, customer segmentation

LoyaltyLion

$159/month

Advanced segmentation for Shopify users

Smile.io

$49/month

Freemium model, strong e-commerce integrations

Yotpo Loyalty

$79/month

Combines loyalty programs with reviews

Zoho CRM

Flexible

Loyalty analytics within a broader CRM system

Talon.One

Custom pricing

Advanced analytics and segmentation for campaigns

Bar chart comparing monthly starting prices of loyalty analytics tools in 2025

Small plug-ins are often free or cheap. Big platforms have custom prices based on what you need.

Support and Maintenance

Support and maintenance help your loyalty program work without problems. You pay for customer support, software updates, and fixing issues. Good support helps you solve problems fast and keeps your loyalty program working for everyone.

Tip: Check each cost before you start your loyalty program. This helps you control costs and get the best results.

Factors affecting cost of a loyalty program

Business Size

How big your business is changes what you pay. If you have a small shop, you spend less. You do not need many features. Big companies pay more because they have more customers. They also have more locations. Loyally AI has plans for every business size. You can start with a simple plan. You can upgrade later as your business gets bigger. This helps you save money and not pay for things you do not use.

Program Complexity

How hard your loyalty program is will change your costs. Simple programs, like stamp cards, are cheaper. If you want points, levels, or special rewards, you pay more. More features mean more work to set up and manage. Loyally AI lets you pick from different card types. You can choose points, cashback, or membership cards. You pick what works best for your business. This helps you keep your costs low.

Industry Type

The kind of business you have also changes the price. Stores often need apps and digital cards. Restaurants may use stamp cards or membership programs. Service businesses might want sharing or special deals. Loyally AI works for many types of businesses. You can find tools that fit your needs. You do not have to pay for things you will not use.

Deployment Type

How you set up your loyalty program changes the cost. You can pick offline, web, mobile, or hybrid programs. Each type has its own price. The table below shows the common types and their costs in 2025:

Type of Loyalty Program

Cost Range

Description

Offline (Stamp-Based)

Low cost

Simple programs, cheap to run but rely on print costs and manual tracking.

Web App Loyalty Programs

$20,000 - $60,000

Highly customizable and scalable, ideal for businesses with a digital presence.

Mobile App Loyalty Programs

Higher cost due to app fees

Seamless experience for mobile users, ideal for industries like retail.

Hybrid Programs

Higher upfront investment

Combines web and mobile platforms for flexibility.

Custom-Built Loyalty Apps

$20,000 - $200,000 or more

Tailored to specific needs, requires a larger budget.

White-Label Solutions

$5,000 - $50,000

Pre-built apps that can be branded, faster to deploy.

Off-the-Shelf Software

$50 - $500 per month

Basic features, most affordable but limited flexibility.

Tip: Loyally AI gives you digital loyalty cards and wallet integration. This helps you skip high setup costs and get started quickly.

You should think about your business size, how hard your program is, your industry, and how you want to set it up before you choose. Loyally AI gives you choices so you can control your budget and get more customers.

Loyalty program development costs and types

Loyalty program development costs and types
Image Source: unsplash

When you make a loyalty program, you need to know the cost for each type. You can pick a custom loyalty program that matches your business. The price depends on what features you want and how many customers you have. Let’s see the main types and what you might pay.

Points-Based Programs

A points-based loyalty program lets customers earn points when they buy things. A basic app costs between $40,000 and $80,000. If you want a custom loyalty program with AI features, it costs $80,000 to $180,000. Big companies pay $200,000 or more for a special loyalty program. You also pay $10,000 to $50,000 each year for updates and help.

  • Small business: $40,000–$80,000

  • Scalable, AI-driven: $80,000–$180,000

  • Enterprise, multi-platform: $200,000–$500,000+

  • Annual maintenance: $10,000–$50,000

Tiered Programs

A tiered loyalty program gives customers levels like Silver, Gold, or Platinum. These programs cost more than simple points programs. You pay extra for tracking, rewards, and upgrades. Most businesses spend $60,000 to $200,000 for a custom loyalty program with tiers. You also need more money for design and analytics.

Cashback Programs

Cashback loyalty programs give customers money back. The cost depends on your business type. Electronics stores give 1–3% cashback. Fashion shops give 5–10%. You should keep cashback at 10–20% of your profit margin. You pay for software setup and rewards. A custom loyalty program with cashback costs $50,000 to $150,000.

  • Electronics: 1–3% cashback

  • Fashion: 5–10% cashback

  • Keep cashback at 10–20% of profit margin

Digital Loyalty Cards (Loyally AI)

You can use digital loyalty cards with Loyally AI. This keeps costs low. You get a custom loyalty program with wallet integration, CRM, and unlimited PUSH notifications. Loyally AI helps you start a custom loyalty program fast. You save money and do not need to print cards. Customers track rewards on their phones. You get data and can use geolocation marketing.

Feature

Description

Customizable Programs

Make loyalty programs fit your needs

Built-in CRM

Manage customer relationships easily

Unlimited PUSH Notifications

Send messages to customers anytime

Geolocation Marketing

Reach customers by where they are

Detailed Analytics

See how your program is doing

Wallet Integration

Use Apple and Google Wallet for easy access

  • Digital loyalty programs are good for the environment and easy to use.

  • You get better customer engagement with geolocation marketing.

  • Loyally AI has a custom loyalty program for any business size.

Referral Programs

Referral programs let customers tell friends about your loyalty program. A custom loyalty program with referral features costs $30,000 to $100,000. You pay for tracking, sharing tools, and rewards. A special loyalty program with strong referral options helps you get more customers fast.

Tip: You can save money by choosing digital solutions like Loyally AI. You get a custom loyalty program with all the features you need and keep your costs low.

Hidden loyalty program costs

When you start a loyalty program, you might not see every cost. Some costs are hidden and can show up later. You need to know about these hidden costs. This helps you plan your budget and avoid trouble.

Technology Expenses

You pay for more than just software with a loyalty program. In 2025, you also need analytics, AI tools, and good cybersecurity. These tools keep customer data safe and help you make smart choices. You also spend money to train your team to use these tools. If you skip this, your loyalty program might not work well.

Training and Change Management

Your staff needs training to run your loyalty program. If they do not get trained, they might get confused or make mistakes. You also need to help your team get used to new ways of working. Change management costs mean hiring skilled people, teaching your staff, and making rules for your loyalty program.

Cost Category

Description

Management Costs

Hiring skilled people, training workers, and making rules for the loyalty program.

Technology Costs

Paying for technology, connecting systems, and keeping things working.

Marketing Costs

Running ads and making materials to get customers to join the loyalty program.

If your team has trouble with new systems, you might pay more:

  • Workers may be less productive if they are confused or not trained

  • You might lose money if staff quit because they are frustrated

  • You could go over budget if you need extra money to fix problems

Support Demands

You need to give support to your customers and workers. Support costs mean answering questions and fixing problems. You also need to keep your loyalty program working well. If you do not plan for enough support, you could lose customers or have delays. Good support helps your loyalty program do well and keeps people happy.

Updates and Upgrades

Your loyalty program needs updates often. You must fix bugs, add features, and keep up with new technology. These updates cost money and take time. If you skip upgrades, your loyalty program might not work right. You should save some money each year for updates.

Tip: Always look for hidden costs before you start your loyalty program. Good planning helps you avoid surprises and keeps your program strong.

Budgeting tips for loyalty program costs

Estimating Total Costs

When you plan a loyalty program, look at every cost. Make a list of all your direct and indirect expenses. Direct costs are things like rewards, your loyalty platform, and paying staff. Indirect costs include legal rules, handling data, and customer support. Think about how these costs fit with your business goals. This helps you build a loyalty program that lasts and keeps customers happy.

  • Direct costs: rewards, technology, staff, and administration

  • Indirect costs: compliance, data management, support, and financial liabilities

  • Strategic management: make sure your spending supports your loyalty program goals

Tip: Write down every cost before you begin. This helps you avoid surprises later.

Reducing Expenses

You can save money on your loyalty program by being smart. Pick a loyalty platform that does not cost too much. Use marketing that speaks to each customer, so you do not waste money. Make your business run smoother to cut down on waste and save cash. Look at your data to make better choices and help your customers.

Strategy

Benefit

Optimize marketing communication

Personalized campaigns lower costs and boost engagement

Streamline logistics and operations

Better planning reduces waste and saves money

Enhance decision-making through data

Data insights help you plan and manage your loyalty program effectively

Drive profitability and revenue

Loyal customers buy more often, increasing your revenue

Reduce Customer Acquisition Cost

Loyal customers cost less to keep than finding new ones

Optimize communication costs

Personalized messages cost less than mass marketing

Choosing Loyally AI

Loyally AI is a loyalty platform that works for any business size. You can start with a small plan and get more features as you grow. The platform gives you digital loyalty cards, a CRM, and unlimited PUSH notifications. You only pay for what you use. Loyally AI helps you keep costs low and skip high setup fees. You also get wallet integration and geolocation marketing to reach more customers without spending extra.

Maximizing ROI

To get the most from your loyalty program, focus on value. Use your loyalty platform to see what your customers do and reward your best ones. Send special offers to get people to come back. Check your results and change your program if you need to. With Loyally AI, you can see which rewards work and make changes fast. This helps your business grow and keeps customers coming back.

You should think about all the costs before starting a loyalty program. It is important to pick a loyalty program that matches your budget and has good features. Loyally AI lets you make a loyalty program with digital cards, CRM, and unlimited PUSH notifications. You can use geolocation marketing and analytics to help your loyalty program grow. Referral sharing and wallet integration make it simple for customers to use your loyalty program. Try Loyally AI to see how your loyalty program can help keep customers coming back.
Get started with Loyally AI today! 🚀

FAQ

What is the best way to start a loyalty program for my business?

You should list your goals and choose a platform that matches your needs. Loyally AI helps you set up a digital loyalty program quickly. You can pick from ready-made templates and start rewarding your customers right away.

How much does it cost to maintain a loyalty program each month?

Most businesses pay a monthly fee for the platform. You also need to budget for rewards and marketing. With Loyally AI, you can start for as little as $12 per month. Costs may rise if you add more features or locations.

Can I customize rewards for my customers?

Yes, you can create custom rewards that fit your business. Loyally AI lets you set up points, discounts, or special offers. You can change rewards anytime to keep your customers interested and coming back.

Do I need special training to use a digital loyalty program?

You do not need special training to use Loyally AI. The platform is easy to use. You can follow simple guides and get help from support if you have questions. Most users learn how to manage their program in a short time.

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