Insights from 100+ brand marketers reveal how personalization, digital innovation, and evolving customer loyalty strategies are shaping customer engagement in 2025.
Cincinnati, OH – July 2025 – Loyalty360, the association for customer loyalty, has released its 2025 State of Customer Loyalty Report, sponsored by Baesman Group. Drawing on insights from over 100 brand marketers across industries, the report offers an in-depth look at how leading brands are adapting their customer loyalty strategies amid changing market conditions, evolving consumer expectations, and rapid advances in technology.
As brands increasingly shift focus from acquisition to retention, the report reveals a growing emphasis on digital experience, personalization, and gamification as core drivers of long-term engagement. It also explores emerging trends in AI adoption, team structures, investment priorities, and the evolving role of customer loyalty programs within organizations.
“Brands are leaning into personalization, gamification, and new technologies—not just to drive transactions, but to foster deeper, long-term customer relationships,” said Mark Johnson, CEO of Loyalty360. “This report reflects the continued evolution of customer loyalty from a marketing function to a strategic growth driver.”
Key Report Highlights:
- 64% of brands are exploring enhancements or full overhauls to their loyalty programs.
- 77% are maintaining or increasing loyalty investment despite economic uncertainty.
- Experiential rewards (52%), VIP tiers (47%), and brand partnerships (44%) are gaining popularity.
- 84% of respondents rate their loyalty strategy as effective or very effective.
- 49% of brands are exploring AI use cases, though adoption remains in early stages.
- 57% cite technology platform limitations as a top challenge.
“Customer loyalty is no longer optional—it’s essential,” said Carly Stemmer Ivory, SVP & Research Analyst at Loyalty360. “Our findings show brands are more committed than ever to building programs that deliver measurable impact, engage members meaningfully, and drive competitive advantage.”
What’s Inside the Report:
- Loyalty Strategies and Enhancements – Personalization, gamification, and digital upgrades top the list of strategic priorities.
- Reward Preferences and Member Engagement – A shift toward exclusive, experiential, and emotionally resonant reward offerings.
- AI and Data Strategy – Brands are taking a cautious approach to AI, with a spotlight on data readiness and privacy concerns.
- Program Effectiveness – 84% of brands consider their customer loyalty programs effective
- Customer Loyalty Challenges – Technology integration and platform constraints remain key barriers.
- 2025 Trends & Opportunities – Highlights actionable priorities around reward innovation, platform selection, data strategy, and internal alignment.
“We’re proud to partner with Loyalty360 on this research initiative that sheds light on the evolving landscape of customer loyalty. The findings in this year’s report equip marketers with insights and direction to elevate their retention strategies and drive long-term customer engagement,” states Cassie Preston, Director of Client Services, CRM & Loyalty at Baesman. “At Baesman, we’re committed to helping brands turn data into action, and this research plays a key role in guiding impactful loyalty programs that drive revenue.”
Loyalty360's State of Customer Loyalty Report is now available on loyalty360.org. For additional information on the report, to arrange an interview, or speak with an analyst regarding the report, please feel free to contact
[email protected].
About Loyalty360
Loyalty360 is the only objective community for customer loyalty enabling and encouraging dialogue among industry leaders. Through a unique blend of original content, cross brand collaboration, and diverse learning opportunities, we've created a network of brands and technology providers representing some of the best voices the customer loyalty industry has to offer. Visit us at
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About Baesman Group
Baesman Group is a trusted partner in customer loyalty, helping brands design, optimize, and execute loyalty strategies that drive long-term member engagement and measurable ROI. With expertise in data-driven marketing, customer analytics, and personalized communications, Baesman supports every stage of the loyalty lifecycle from program design and member acquisition to ongoing loyalty program management and engagement through email, SMS, and direct mail. Brands like Fleet Feet, Carhartt, and Hibbett rely on Baesman to turn customer data into loyalty that performs. For more information, visit www.baesman.com .
Media Contact
Ethan Perry
Loyalty360
513-800-0360
[email protected]
https://loyalty360.org/