The 10 Best Customer Loyalty Software for Small Businesses in 2025

In 2025, businesses face tough competition, making customer loyalty incredibly important for small business success. Loyalty programs are crucial for encouraging repeat purchases and significantly increasing customer lifetime value. Loyal customers can boost annual revenue by 18%, leading to substantial profit growth. For instance, a cafe with 500 loyal customers could generate an additional $20,000 annually simply by increasing customer visits—a goal effectively supported by a robust loyalty program. Implementing customer loyalty program software automates and optimizes these initiatives, serving as a key tool for building strong customer relationships and enhancing engagement. This blog will guide you through the top 10 customer loyalty program software options for 2025, detailing their features, pricing, ease of use, and suitability for your business needs.

Key Takeaways

• Customer loyalty software helps small businesses keep customers. It makes them buy more often. They spend more money.

• Good loyalty software has features. These include points and rewards. It helps get new customers. It should work with your other business tools.

• Many loyalty software choices exist. They fit different budgets. Some plans are free. Others cost little each month.

• Loyally.ai is a good choice. It is for small businesses. It offers custom digital loyalty cards. It helps manage customers. It has marketing tools.

• Picking the right software helps your business grow. It makes customers happy. They are more likely to return.

Why Small Businesses Need Customer Loyalty Software

The Power of Customer Loyalty

Customer loyalty is key for your small business. It helps your business grow strong. Loyal customers come back often. They tell others about you. This makes a strong cycle. Keeping customers happy has clear value.

These numbers show how important strong customer loyalty is.

Key Benefits of Loyalty Program Software

Small businesses face problems. They have little money for ads. There is much competition. Without customer loyalty software, you might struggle.

• Limited Resources: You lack money and staff. Complex customer retention is hard.

• Competition from Larger Brands: Big brands have more ad money. They are more known.

• Technological Barriers: You might not have good CRM tools. Data tools may be missing.

Loyalty program software helps with these issues. It gives you tools to connect. Loyalty program members spend more. They spend 13-20% more over time. Repeat customers spend 67% more. This is compared to new ones. Customers who use rewards spend more. They spend up to 25% more each year. Loyalty programs make customers more valuable. They increase how much people spend. They also make people buy more often. These programs stop customers from leaving. Customers who get rewards stay loyal. They also make each purchase worth more. This is called Average Order Value (AOV). A good loyalty program lowers your churn rate. It makes customers stay. This is key for any smb.

Essential Features for Small Business Loyalty Apps

Choose loyalty apps for small businesses carefully. Look for important features. You need a system to manage customer loyalty. A good customer loyalty platform is easy to set up. It should work with your current systems. Look for digital rewards. Find automated messages. Look for customer groups. These tools help run good loyalty programs. They make customer loyalty management easy. Many loyalty platforms offer these tools. You can find the right loyalty program for you.

You want the best customer loyalty software. This part helps you find it. Each loyalty program software has special features. You will learn about costs. You will learn about good things. You will learn about how to use them. This guide helps you choose. It helps you pick the right loyalty platform. This will boost customer loyalty and customer engagement.

Loyally: All-in-One Digital Loyalty Platform

Loyally.ai offers a full digital loyalty plan. It helps you get customers back. It helps you keep them. It helps you grow your base. This customer loyalty program software costs little. It starts at $12 each month. This is great for small business owners. They want cheap loyalty program software.

• Key Features:

  • You can make your own digital loyalty cards. These include Stamp, Reward, Membership, Discount, Cashback, Coupon, Multipass, and Gift Cards.

  • It has a built-in CRM system. This helps you handle customer info.

  • You get many PUSH messages. You can send these to phones.

  • It has location-based marketing. It has referral sharing. This helps get new customers.

  • Customers can add cards to Apple Wallet. They can add to Google Wallet. No other app is needed.

• Pricing:

  • Essential Plan: $12 per month. This gives you many cards. It gives many visits. It gives PUSH messages. It gives CRM. It gives analytics. It gives a card scanner. It gives support for one place.

  • Growth Plan: $24 per month. You get all Essential things. You get support for three places. You get many auto-PUSH messages. You get many referrals. You get up to ten managers.

  • Premium Plan: $78 per month. This includes all Growth things. You get support for ten places. You get custom links. You get custom branding. You get a custom web address. You get direct links to other tools. (like Square, Shopify). You get up to ten managers.

• Pros:

  • It has many features. These help keep customers. They help with customer engagement.

  • You can change digital loyalty programs easily.

  • The system has a CRM. It has many free PUSH messages.

  • It uses location. It uses closeness marketing. This targets customers.

  • You can see detailed numbers. You can use sharing to grow customers.

  • Businesses using Loyally saw profits go up 213%. Immediate buys went up 47%.

• Cons:

  • No bad points are shown here.

• Ideal Use Case:

  • Any small business. They want a full digital loyalty platform. It helps get customers back. It helps keep them. It helps grow repeat customers. This works in many fields.

Smile.io: Rewards & Referral Loyalty Software

Smile.io helps you make rewards. It helps make referral programs. It is liked by online stores. You can build strong loyalty programs. This customer loyalty software helps.

• Key Features:

  • You can set up points. You can set up referrals. You can set up VIP programs.

  • It has a changeable look. This is for your loyalty program. It can match your brand.

  • It works with big online stores. (like Shopify and BigCommerce). It also links to marketing tools. (like Klaviyo and Mailchimp).

• Pricing:

  • Smile.io has a Free plan. Paid plans start at $49 per month. This is for the Starter plan.

• Pros:

  • You can let guest shoppers earn rewards.

  • Customers earn points for other things. (like birthdays, making an account, sharing on social media).

  • You can make reward programs. No coding is needed. It is easy to use.

  • The Admin Dashboard is simple. Customer help is good.

  • It has 'Nudges'. (smart popups). These help people buy again.

• Cons:

  • It does not work well with all POS systems. For example, it does not work with Lightspeed.

  • Small businesses might find prices high.

  • API access is only for higher-priced plans. This can mean many small tools on your site.

• Ideal Use Case:

  • Small to medium online stores. It is good for new loyalty users. They want a quick setup. This is for points, referrals, and VIP levels.

Yotpo Loyalty & Referrals: E-commerce Customer Loyalty

Yotpo Loyalty & Referrals focuses on online customer loyalty. It helps you build strong loyalty programs. It helps build referral systems. This loyalty program software is for businesses. They want deep customer engagement.

• Key Features:

  • It has over 20 ways to earn. You can reward customers. This is for certain buys. It is for actions across different channels.

  • You can give many rewards. These include coupons. They include donations. They include custom experiences. They include free products.

  • It supports level-based programs. You can group customers. This is into VIP levels. It is based on their spending. It is based on referrals.

  • It has a referral program. Current customers can invite friends.

  • It offers loyalty everywhere. This includes POS links. It includes mobile wallet passes.

• Pricing:

  • The info given does not show prices. This is for Yotpo Loyalty & Referrals.

• Pros:

  • It gives strong loyalty results. You can make custom VIP programs. These have levels.

  • It rewards actions. (like buys, reviews, or referrals). This builds long-term loyalty.

  • It helps you keep customers well.

• Cons:

  • Costs go up fast. This is with more monthly orders. This means expensive upgrades. This happens as your business grows.

  • The full setup takes time. It often needs a developer.

  • Customer help can be uneven. Fast help is for higher plans.

  • It can have tech problems. It can have theme problems. This is with custom online store themes.

• Ideal Use Case:

  • Older, fast-growing online brands. They have many orders. They can use advanced features. They can handle higher prices. It is not good for new businesses. It is not good for small businesses. They have small budgets.

Kangaroo Rewards: SMB Loyalty & Marketing Automation

Kangaroo Rewards offers a full loyalty and marketing tool. This is for small and medium businesses. This loyalty program software helps you get customers. It helps keep them. It helps engage them.

• Key Features:

  • You can make flexible rewards. These are based on points. Customers can use points. This is for products or services.

  • It lets you set up member levels. It lets you set up tiered rewards. These are based on what customers do.

  • It includes personal emails. It includes automated SMS messages. These are for marketing.

  • It gives an all-channel loyalty experience. This links to in-store POS. It links to online stores. It links to mobile apps.

• Pricing:

  • Kangaroo Rewards has Core, Plus, Elite, and Enterprise plans. The 'Plus' plan starts at $349 USD per month. The 'Enterprise' plan is for big companies. It needs a custom price.

• Pros:

  • You can get customers. You can keep them. You can engage them well.

  • It has strong marketing tools. It has good reports.

  • It links smoothly with current systems.

  • It sets up fast. Often in about 30 days.

  • Prices are clear. Support focuses on small and medium businesses.

• Cons:

  • It uses rules for automation. It does not have advanced AI.

  • Dashboard limits often need data exports. This is for full analysis.

  • It might hold back businesses. The market is moving to AI tools.

• Ideal Use Case:

  • Small to medium businesses. This is in many fields. (like online stores, retail, restaurants, salons). It is good for those using Shopify.

Preferred Patron Loyalty: Comprehensive Loyalty Solution

Preferred Patron Loyalty offers a full loyalty plan. It serves B2C, B2B, and B2E businesses. This customer loyalty software works for small, medium, franchise, and big companies.

• Key Features:

  • It has many reward levels. It has automatic member upgrades.

  • It has many ways to market incentives.

  • It includes a CRM. It also has email and SMS features.

  • You can brand the program as your own.

  • It offers free text messages. It has built-in gift card processing.

• Pricing:

  • Prices change. This depends on program type. It depends on business size.

  • Small Business (SB) plan starts at $29 per month.

  • Mid-Market (Growth) plan starts at $199 per month.

  • E-commerce plan starts at $499 per month.

  • GiftCard plan is $30 per month per place.

• Pros:

  • It is a full and good customer loyalty management tool.

  • It is easy to use. It has many features. These are for managing rewards.

  • You get many marketing choices. These include SMS and email.

  • It saves money. This is for ads and customer care.

  • It links rewards. It links ads. It links gift card systems.

  • Customer service is great. It is quick. It knows a lot.

  • It has many support options. (like 24/7 help, email, and phone).

• Cons:

  • Helpdesk is not always open on weekends.

  • It might not be as good with mobile wallets. This is compared to others.

  • It has some risks. (for rules, safety, privacy, links, and moving data).

• Ideal Use Case:

  • Businesses in many fields. (like restaurants, retail, hotels, cars, health, and salons). They want a full loyalty and customer engagement tool.

Tremendous: Rewards & Incentives Platform

Tremendous is a tool. It gives out rewards. It gives out incentives. It does not build full loyalty programs. Instead, it helps send many rewards easily.

• Key Features:

  • It has over 2,500 reward choices. These include Visa cards. They include PayPal. They include Venmo. They include charity gifts. They include gift cards from many stores.

  • It sends digital items fast. This is by email. It is by SMS. It is by bulk link. You can also send physical items by mail.

  • Delivery is automatic. It fits where people are. It fits their language. It fits their money.

  • It can send many items at once. This is by spreadsheet. It is by API. It is by linking with over 5,000 tools.

  • It stops fraud. It has good reports.

• Pricing:

  • Tremendous is free to use. There are no minimums. You pay the actual cost for most rewards. A small fee is for money options. You might get discounts. This is for spending over $200,000.

• Pros:

  • It has many reward choices.

  • Delivery is flexible. It is worldwide.

  • The tool is free to use. You only pay for the rewards.

  • It has strong fraud protection. It has good reporting tools.

• Cons:

  • It mainly gives out rewards. It does not build or manage a full loyalty program.

• Ideal Use Case:

  • Businesses that need to give out rewards. They need to give out incentives. This includes employee thanks. It includes health programs. It includes sales boosts. It includes workplace safety. It includes market research. It includes UX research. It includes medical research. It includes school research.

SumUp Connect: Integrated Loyalty for Payments

SumUp Connect links loyalty features. It links them with payment processing. This makes it easy. Businesses using SumUp can give rewards. This loyalty program software helps. It joins payments and loyalty smoothly.

• Key Features:

  • It has digital stamp cards.

  • You can make customer profiles. You can use basic data.

  • It links with SumUp POS. It links with email marketing.

  • Higher plans offer many digital stamp cards. They offer custom rewards. They offer automatic campaigns.

  • Advanced plans include tiered loyalty programs. They include referral programs. They include gift card links.

• Pricing:

  • Prices are not clearly shown here. But, it has Free, Starter, Pro, and Enterprise plans.

• Pros:

  • It links well with SumUp payment systems.

  • It helps build customer lists. This is with every sale.

  • You can easily sign up customers. Just use a phone number.

  • It gives special deals. It gives automatic messages.

  • It works with big credit cards. It works with mobile wallets.

• Cons:

  • Price details are not easy to find.

  • It might be less flexible. This is for businesses not using SumUp.

• Ideal Use Case:

  • Businesses already using SumUp for payments. It is good for those. They want to add loyalty programs. They want customer retention features. This is directly to their current setup.

Open Loyalty: Flexible Loyalty Program Software

Open Loyalty gives flexible loyalty program software. It is for businesses. They need very custom tools. This loyalty management software is for big companies. They want control over their loyalty system.

• Key Features:

  • It uses a headless design. It uses an API-first design. This allows very custom loyalty rules.

  • It has a modular way. You get building blocks. (APIs and SDKs). These make custom loyalty tools.

  • It has a modular rewards engine. You can make custom loyalty setups. There are no fixed limits.

  • Gamification is a main part. It has game-like rewards. (like badges and progress steps).

  • It supports real-time systems. This is for instant earning. It is for instant using. It is for instant status updates.

• Pricing:

  • Open Loyalty is for big companies. It usually works with custom prices. It needs big budgets. It does not show free trials. You can ask for demos. You can ask for test programs.

• Pros:

  • It gives maximum freedom. You own your loyalty program.

  • You can use it in the cloud. You can use it on your own servers.

  • It is fast to set up. It gives full freedom to build. It gives full freedom to link. This is at the API level.

  • It is made for big companies. They want new ideas.

• Cons:

  • It needs a lot of money.

  • It is best for businesses. They have good developers.

  • It does not offer free trials.

• Ideal Use Case:

  • Medium to large companies. They need a very custom loyalty tool. It is also good for businesses. They have digital platforms. They want to add loyalty features.

LoyaltyLion: E-commerce Loyalty & Engagement

LoyaltyLion focuses on online loyalty. It focuses on customer engagement. This loyalty program software helps you build strong loyalty programs. This is for online stores. It is for 'bigger brands'. They want advanced loyalty tools.

• Key Features:

  • It offers changing loyalty rewards. These use rules based on actions. You can automatically reward actions. This is on and off your site. (like making an account, reviews, referrals, and social follows).

  • It includes LoyaltyLion AI. This gives AI-powered campaigns. These help marketers find good chances.

  • It helps you grow sales. This is through loyalty and rewards. It also makes shopping better.

  • It has rules and automation. This is for managing your program.

  • It gives customer data. It gives a sales predictor.

• Pricing:

  • Price info is on their website. Look for the 'Pricing' link.

• Pros:

  • It offers advanced loyalty tools for online stores.

  • You can reward many customer actions.

  • It uses AI. This helps you make campaigns better.

  • It helps you see success. This is with customer data.

• Cons:

  • It is for 'bigger brands'. It might be too hard. It might be too costly. This is for very small businesses.

  • Prices are not clear. You must contact them.

• Ideal Use Case:

  • Established online brands. This is in fashion, beauty, food, drinks, and pet care. They want advanced loyalty. They want customer engagement features.

FiveStars: Local Business Loyalty Apps

FiveStars is loyalty program software. It is for local stores. It is for physical businesses. It helps you keep current customers. It helps get new ones. This loyalty platform combines a loyalty program. It combines CRM. It combines a network for finding customers.

• Key Features:

  • It offers point-based programs. It offers automatic deals. It offers birthday rewards.

  • It helps you build a customer list fast. Customers sign up. They type their phone number. This is on a tablet.

  • You can group customers. You can send special deals. This is by SMS or email.

  • An optional Shopify link helps. It connects in-store and online loyalty.

  • It works with all big credit cards. It works with mobile wallets.

• Pricing:

  • FiveStars uses custom prices. You must call their sales team. This is for a price. There is no public free trial. A demo is available if you ask.

• Pros:

  • It joins payment tools. It joins marketing features. This helps get customers. It helps keep them.

  • It offers next-day money deposits. This is key for managing cash.

  • Customer support is great. It has live chat seven days a week.

  • It follows EMV and PCI rules. This keeps data safe.

  • It helps you build a customer list. This makes customer loyalty management better.

  • Loyalty program use is easy.

• Cons:

  • It only works for physical stores. It is not for online sellers.

  • Prices are not clear. You need to ask for a price.

  • It might be too much. This is for very small stores.

• Ideal Use Case:

  • Local physical retail stores. It is for service businesses. They want to keep current customers. They want to get new ones. This is through its "Love Local" network.

Picking the Right Loyalty Software

You need to pick the best loyalty software. It helps your business. It helps you keep customers. It helps you grow. Think about some key things. Do this before you choose.

What Your Business Needs

First, think about your goals. Do you want people to buy more often? Do you want them to stay customers? Maybe you want more sales. Maybe you want bigger orders. Many businesses want to know about customers. You might want happy customers. You want them to tell others. Small businesses want more money. They want a stronger community. Look for loyalty apps. They should have points. Or they should have levels. These help customers move up. They build stronger ties. Different rewards help different customers. VIP levels are for top customers. Special rewards are for them. Referral programs help get new customers. Good tools help you target customers. Good reports show how well it works. This includes how much money you make. It includes how often people buy.

How Much Money to Spend

Your budget is important. Loyalty apps cost different amounts. Square Loyalty has different prices. It is good for small businesses. Clover Rewards is for bigger businesses. It costs about $99 each month. Toast Loyalty is for restaurants. It starts at $50 each month. Rivo's Scale Plan starts at $49 each month. This is for 200-1,500 orders. The Plus Plan is $499 each month. This is for up to 2,500 orders. The first year cost can be $2,522.50. This is for under 2,000 orders. It can be $4,485.00. This is for over 7,000 orders.

How It Works with Other Tools

Your new loyalty software should work well. It should work with your other tools. This makes things smooth for customers. It also makes things work better. Look for POS system links. This connects loyalty to checkout. E-commerce links connect loyalty to online stores. CRM links combine buying data. It combines loyalty actions. This helps with ads. Email tools help send personal messages. Mobile apps make it easy for customers. API links, plugins, or custom tools can connect systems.

Can It Grow with You?

Think if the software can grow. A good loyalty platform uses the cloud. This makes it work well. It works as more customers join. It should have rules you can change. This fits your rewards. It fits your campaigns. The platform must grow with you. It must work in new places. This keeps things new. Strong platforms handle many customers. They show how to keep customers. They show how to make more money. Look for good customer help. This includes guides and support. This makes your loyalty program run well.

A strong loyalty program is key. It helps your small business grow. You saw many top loyalty tools. The right software helps keep customers. It makes them more involved. Loyally AI is a good choice. It has many ways to keep customers. You get custom digital loyalty programs. It has a built-in CRM. You get endless free PUSH messages. It has location-based marketing. You get detailed reports. It has referral sharing. These things make customers more loyal. Loyally AI's digital cards go right into Apple Wallet. They also go into Google Wallet. No extra app is needed. This program gives great rewards. These programs make customers loyal. Many loyalty tools give rewards. Your customers will like these rewards. Get started with Loyally.ai today!

FAQ

What is customer loyalty software?

This software helps you. It runs programs. These programs give rewards. Customers get rewards for buying again. It gives points. It gives discounts. It gives special deals. This makes customers return.

How can loyalty software benefit my small business?

It helps you keep customers. They spend more money. You can get new customers. Referrals help with this. It saves money on ads. This makes more profit.

Is loyalty software affordable for small businesses?

Yes, many choices exist. Some plans are free. Others cost little each month. You can find a plan. It will fit your budget. Loyally.ai costs $12 a month.

Can loyalty software integrate with my current systems?

Many programs connect. They link with POS systems. They link with online stores. This makes things easy. You can link your program. It works with your tools.

Why should I consider Loyally.ai for my business?

Loyally.ai is a full solution. You get custom digital cards. It has a CRM built-in. It sends many PUSH messages. It uses location for marketing. This helps you reach customers.