Comprehensive data compiled from extensive research on customer loyalty metrics, retention economics, and program performance for Shopify brands
Customer loyalty programs have evolved from simple punch cards to sophisticated retention engines that drive measurable revenue growth. Modern solutions like Rivo enable ecommerce brands to build automated points programs, VIP tiers, and referral systems that increase repeat purchase rates and customer lifetime value. The following statistics reveal why loyalty investment delivers some of the highest returns in ecommerce and how leading brands leverage retention programs to outperform acquisition-focused competitors.
Key Takeaways
- Loyalty market expansion accelerates – The global loyalty management market reaches $15.19 billion in 2025 and projects to hit $41.21 billion by 2032, signaling massive growth opportunities for brands investing in retention infrastructure through platforms like Rivo
- True Loyalty faces decline for the first time – True Loyalty dropped 5% to just 29% in 2025, marking the first decline in five years and forcing brands to rethink traditional loyalty approaches
- Retention economics remain compelling – A 5% increase in customer retention can boost profits by 25% to 95%, while retaining customers costs 5x less than acquiring new ones
- Program ROI proves substantial – 90% of loyalty programs report positive ROI, with the average program generating 4.8-5.2x more revenue than it costs to operate
- Repeat purchasers drive revenue – 65% of company revenue comes from repeat business, with current customers spending 67% more on average than new customers
- Generational loyalty varies significantly – 70% of Gen Z claim brand loyalty, yet 39% have switched brands over sustainability practices, requiring nuanced engagement strategies
- Personalization amplifies results – Members redeeming personalized rewards spend 4.3x more than those redeeming non-personalized rewards, making customization essential
- Premium programs gain traction – 79% of consumers now participate in at least one paid loyalty program, with 48% reporting positive retention and satisfaction impact
Understanding the Customer Loyalty Index: Market Size and Industry Trends
1. Over 90% of companies globally have implemented loyalty programs
More than 90% of companies worldwide now operate some form of loyalty or rewards program. This near-universal adoption creates competitive pressure for brands without retention programs and raises the bar for program quality and differentiation. The ubiquity of loyalty programs means that modern consumers expect rewards and recognition as standard practice rather than a competitive differentiator. Brands without loyalty programs now face a competitive disadvantage, as customers actively seek out brands that reward repeat purchases. This market reality makes program differentiation through features like VIP tiers, personalized rewards, and referral mechanics essential for standing out in a crowded loyalty landscape. Source: SellersCommerce
2. True Loyalty declined 5% to 29% in 2025, marking the first drop in five years
The SAP Emarsys Customer Loyalty Index reveals True Loyalty fell from 34% to 29% in 2025—the first decline in five years. This shift signals changing consumer behavior and increased competition for genuine brand devotion. This historic decline in True Loyalty—defined as customers who both claim loyalty and demonstrate it through purchase behavior—marks a turning point in consumer-brand relationships. The drop suggests that traditional loyalty approaches focused solely on transactions may no longer suffice in an era where consumers have unlimited options and rising expectations. Brands must now combine transactional rewards with experiential benefits, personalization, and values alignment to earn genuine loyalty rather than just habitual purchases. Source: SAP Emarsys
3. 68% of consumers still report brand loyalty in 2025
Despite declining True Loyalty, 68% of consumers claim loyalty to certain brands in 2025. The distinction between claimed loyalty and demonstrated loyalty creates opportunities for brands that can convert passive sentiment into active engagement through well-designed loyalty programs. The 39-percentage-point gap between claimed loyalty (68%) and True Loyalty (29%) represents a massive opportunity for ecommerce brands with effective retention programs. These ""passively loyal"" customers already have positive brand sentiment but haven't translated that sentiment into consistent purchase behavior. Loyalty programs with engaging mechanics, relevant rewards, and personalized communication can bridge this gap by giving customers structured reasons to act on their existing brand affinity. Source: SAP Emarsys
The Power of Repeat Purchase Rate: A Core Loyalty Metric
4. A 5% increase in customer retention can boost profits by 25% to 95%
Small improvements in retention generate outsized profit impact. Bain & Company research demonstrates that a mere 5% increase in customer retention can boost profits anywhere from 25% to 95%, making retention one of the highest-leverage activities for ecommerce brands. A 5% retention improvement might sound modest, but when applied to an existing customer base, it creates exponential revenue growth over time as those retained customers continue purchasing for months or years. This makes loyalty programs among the highest-ROI investments available to ecommerce brands, particularly when compared to the rising costs of paid acquisition. Source: Bain & Company
5. Retaining customers costs 5x less than acquiring new ones
Customer acquisition costs continue rising while retention remains cost-effective. Retaining existing customers costs approximately 5x less than acquiring new ones, with some studies indicating the gap reaches 5 to 25 times. The dramatic cost advantage of retention versus acquisition has only widened as digital advertising costs have increased and iOS privacy changes have reduced targeting effectiveness. For brands spending $50 to acquire a new customer through paid channels, investing even $10 per customer in retention programs delivers far superior economics. This cost efficiency validates loyalty program investment even for brands with limited marketing budgets, as retention spending delivers both immediate returns through repeat purchases and long-term value through extended customer relationships. Source: Rivo
6. 65% of company revenue comes from repeat business
Existing customers drive the majority of revenue for most businesses. Research shows 65% of company revenue comes from repeat business of existing customers, underscoring why brands building repeat purchase rate through loyalty programs outperform acquisition-focused competitors. This revenue concentration on existing customers fundamentally challenges the acquisition-obsessed mindset prevalent in ecommerce. Brands allocating 80% of their marketing budget to acquisition while only 20% to retention are inverting their resource allocation relative to revenue generation. The most successful ecommerce brands recognize this dynamic and rebalance their investments toward the customer segment generating nearly two-thirds of total revenue, using loyalty programs as the primary retention mechanism. Source: Queue-it
7. Current customers spend 67% more on average than new customers
Beyond purchase frequency, existing customers demonstrate higher order values. Current customers spend 67% more on average than those new to a business, compounding the retention advantage across both frequency and basket size. Loyalty programs that encourage basket growth through tiered point earning or minimum purchase rewards can amplify this natural spending advantage even further. Source: Business.com
8. The probability of selling to existing customers reaches 60-70%
Conversion rates differ dramatically between existing and new customers. The probability of selling to an existing customer is 60-70%, while the probability of selling to a new customer is only 5-20%. Existing customers have already overcome purchase objections, experienced product quality, and established payment relationships—eliminating the friction that prevents most new visitors from converting. Loyalty programs enhance this conversion advantage by adding structured incentives (points earning, tier progression, rewards redemption) on top of existing trust and familiarity. Source: Rivo
9. The average customer retention rate across all industries is 75.5%
Industry-wide retention benchmarks provide context for program performance. The average customer retention rate across all industries sits at approximately 75.5%, though ecommerce and retail typically see lower rates around 63%. The 12.5-percentage-point gap between all-industry retention (75.5%) and ecommerce-specific retention (63%) reflects the unique challenges of online retail, including intense competition, low switching costs, and purely transactional customer relationships. However, this gap also represents opportunity—ecommerce brands implementing best-practice loyalty programs can close this gap and achieve retention rates matching or exceeding the all-industry average. Even moving from 63% to 68% retention (a 5-point improvement) can generate the 25-95% profit boost identified in the Bain research. Source: DemandSage
Unlocking Customer Lifetime Value with Strategic Loyalty Programs
10. Top-performing loyalty programs boost revenue by 15-25% annually
McKinsey analysis reveals the highest-performing loyalty programs boost revenue from participating customers by 15-25% annually. This performance tier represents the benchmark for brands optimizing their retention strategies. The distinction between average programs (12-18% lift) and top performers (15-25% lift) typically comes down to program design sophistication. Top-performing programs incorporate VIP tiers that create aspiration mechanics, personalized rewards that increase relevance, and omnichannel integration that enables earning and redemption across all touchpoints. Brands using modern loyalty platforms can implement these advanced features without custom development, making top-tier performance accessible to brands of all sizes. Source: Queue-it
Boost Customer Engagement: Essential Statistics for Loyalty Success
11. 63% of consumers shop frequently with their favorite brands
Frequent shopping behavior demonstrates active loyalty. 63% of consumers report shopping frequently with their favorite brands, representing the engaged customer base most valuable for retention programs. This majority of frequent shoppers represents the core audience that loyalty programs should target and reward. However, the 37% who don't shop frequently with favorites represent an opportunity to use loyalty mechanics (points earning, tier qualification, expiring rewards) to increase purchase frequency among less-engaged customers. Source: SAP Emarsys
12. 41% of consumers actively use loyalty cards or programs
Despite high enrollment numbers, active usage remains lower. 41% of consumers report using loyalty cards or programs, indicating room for improvement in program engagement and accessibility. The gap between enrollment and active usage (59% of enrolled members are inactive) highlights the ""wallet clutter"" problem facing loyalty programs. Many consumers sign up during checkout to receive an immediate discount but never engage again. Brands can combat this through automated engagement campaigns (points balance reminders, expiration warnings, personalized reward suggestions) and frictionless program experiences that don't require separate cards or manual point tracking. Source: SAP Emarsys
Referral Program Statistics: Fueling Growth Through Loyal Advocates
13. 48% of loyal customers recommend brands to friends and family
Word-of-mouth remains a powerful loyalty expression. 48% of loyal customers recommend their favorite brands to friends and family, creating organic acquisition channels from satisfied customers. This nearly 50% advocacy rate demonstrates that loyalty programs create value beyond direct purchases from enrolled members. Satisfied loyalty program members become unpaid brand ambassadors who reduce acquisition costs by bringing in pre-qualified, high-trust referrals. Brands can formalize this organic advocacy through structured referral programs that reward both the referrer and referred friend, converting passive word-of-mouth into a measurable acquisition channel. Source: SAP Emarsys
14. 86% of loyal customers will recommend brands to their network
The advocacy potential of loyal customers is substantial. 86% of loyal customers will recommend the brand to their friends and family, making referral programs a natural extension of loyalty initiatives. The jump from 48% (who actively recommend) to 86% (who will recommend) reveals significant untapped advocacy potential. The 38-percentage-point gap represents customers who would advocate if asked or incentivized but don't do so spontaneously. Referral programs bridge this gap by providing structured prompts, shareable referral links, and rewards that convert latent advocacy into actual referrals. For brands using solutions like Rivo that integrate referral mechanics with loyalty programs, this creates a seamless experience where customers can both earn points and refer friends through a unified interface. Source: Rivo
Measuring the Impact of VIP Tiers on Customer Loyalty and Spending
15. 70% of Gen Z claim loyalty to brands they love and trust
Younger consumers show strong loyalty potential when properly engaged. 70% of Gen Z say they're loyal to brands they love and trust, though their loyalty expressions differ from older generations. Gen Z's high claimed loyalty rate (70%) demonstrates that younger consumers aren't inherently disloyal—they simply define and express loyalty differently than previous generations. While older consumers might show loyalty through consistent repeat purchases, Gen Z expresses loyalty through social media engagement, content creation, and values alignment. Loyalty programs targeting Gen Z should incorporate social sharing rewards, sustainability-focused benefits, and digital-first experiences that align with their preferences and behaviors. Source: SAP Emarsys
16. Millennials are 278% more likely than Baby Boomers to spend more when part of a brand's loyalty program
Generational differences in program responsiveness are substantial. Millennials are 278% more likely than Baby Boomers to spend more on a brand when part of its loyalty program, making tiered programs particularly effective for this demographic. Brands with primarily Millennial customer bases can justify more aggressive loyalty investment knowing this demographic shows nearly 4x the spending response of older generations. However, the statistic also reveals that even Baby Boomers respond positively to loyalty programs, just at lower magnitude. Source: SellersCommerce
17. 42% of Millennials show loyalty by installing brand apps
Younger generations express loyalty through digital engagement. 42% of Millennials demonstrate loyalty by installing a brand's app, while 65% of Boomers and 72% of Gen X show loyalty through purchase frequency. These generational differences in loyalty expression require brands to offer multiple paths for customers to demonstrate and deepen their brand relationships. App-based loyalty programs appeal to Millennials who prefer mobile-first experiences, while traditional purchase-frequency rewards resonate with older generations. Modern loyalty platforms that work across web, mobile, and app environments enable brands to meet customers wherever they prefer to engage rather than forcing a single interaction model. Source: SAP Emarsys
18. 79% of consumers participate in at least one paid loyalty program
Premium loyalty tiers gain mainstream adoption. 79% of consumers are enrolled in at least one paid loyalty program, demonstrating willingness to pay for enhanced benefits and exclusivity. The near-universal adoption of paid programs (79%) reflects successful conditioning by Amazon Prime, Costco, and other membership models that charge upfront fees in exchange for valuable benefits. This mainstream acceptance creates opportunities for ecommerce brands to test premium loyalty tiers that charge annual fees offset by free shipping, exclusive products, or enhanced earning rates. The revenue from membership fees can fund richer benefits while the payment itself creates psychological commitment that improves retention. Source: SellersCommerce
Return on Investment of Loyalty Programs: Key Performance Indicators
19. 90% of companies plan to revamp loyalty programs within three years
Program evolution remains a priority. 90% of companies with a loyalty program plan to revamp it in the next three years, with 65% specifically wanting to replatform their program. This massive wave of planned program changes reflects both dissatisfaction with current platforms (particularly rigid legacy systems) and evolving best practices that make older programs obsolete. The 65% replatforming intent signals opportunity for modern loyalty platforms built natively for ecommerce that offer flexible configuration, seamless integrations, and month-to-month pricing without long-term contracts. Brands evaluating platforms should prioritize solutions that enable ongoing optimization without requiring complete rebuilds. Source: Queue-it
Frequently Asked Questions
What is a customer loyalty index and how is it calculated?
A customer loyalty index measures the strength of customer relationships through multiple metrics including repeat purchase rate, Net Promoter Score (NPS), customer lifetime value, and program engagement rates. The SAP Emarsys Customer Loyalty Index tracks various loyalty types including True Loyalty, Silent Loyalty, and Trend Loyalty across global consumer populations. True Loyalty specifically measures customers who both claim loyalty and demonstrate it through purchase behavior, providing the most accurate assessment of genuine brand devotion.
What are the most important statistics to track for a customer loyalty program?
The essential metrics include repeat purchase rate, customer lifetime value, redemption rate, program activity rate, and loyalty-attributed revenue. Brands should also track ROI (averaging 4.8x for successful programs), member spend versus non-member spend (3.1x higher for redeemers), and referral rates among program members. Advanced programs should monitor tier distribution, personalization impact on spending, and cohort analysis showing how loyalty program membership affects long-term customer value compared to non-members.
How can loyalty programs help improve customer lifetime value?
Loyalty programs increase CLTV by driving repeat purchases (65% of revenue comes from existing customers), increasing average order value (current customers spend 67% more), and extending customer relationships. Members redeeming personalized rewards spend 4.3x more annually than those redeeming non-personalized rewards. The 12-18% annual incremental revenue growth from loyalty members compounds over time, dramatically increasing total customer value. Programs with VIP tiers create additional aspiration mechanics that encourage customers to increase spending to reach higher status levels.
What role do referral programs play in boosting customer loyalty?
Referral programs convert satisfied customers into brand advocates. 86% of loyal customers will recommend brands to friends and family, while 48% actively do so without prompting. Customers referred by loyalty members typically show higher AOV and retention rates than those acquired through paid channels. Integrated referral-loyalty programs create a complete growth loop where satisfied customers both spend more themselves and bring in new customers, reducing acquisition costs while increasing customer lifetime value.
What is the typical ROI expected from a well-implemented loyalty program?
Well-designed loyalty programs generate 4.8-5.2x more revenue than they cost, with 90% of programs reporting positive ROI. Top-performing programs boost revenue from participating customers by 15-25% annually according to McKinsey analysis. Brands actively measuring ROI report an average 5.2x return, while the overall program average sits at 4.8x. This makes loyalty programs one of the highest-ROI marketing investments available, particularly when compared to rising customer acquisition costs that often exceed 5x the cost of retention. For Shopify brands looking to build retention programs that deliver these results, Rivo offers a modern loyalty solution with customizable points programs, VIP tiers, and referral marketing—all built natively for Shopify Plus with month-to-month pricing and no hidden fees."
