Getting buy-in for a loyalty program often comes down to one question: what's the return? Leadership wants numbers. Finance wants projections. Marketing wants proof that the budget won't disappear into a rewards black hole.
The good news: loyalty programs are one of the most measurable retention investments you can make. The data exists—you just need to know where to look and how to calculate it. This guide breaks down 25 critical ROI benchmarks, provides the formulas to calculate your own performance, and gives you the ammunition to build a compelling business case for a loyalty program that drives real revenue.
Key Takeaways
- ROI is proven and measurable – 90% of loyalty programs report positive ROI with an average return of 4.8x-4.9x, and companies that actively measure ROI report even higher returns at 5.2x.
- Retention economics favor loyalty – Acquiring a new customer costs 5-25x more than retaining an existing one, and a 5% retention increase can boost profits by 25-95%.
- Member behavior changes spending – Loyalty members who redeem rewards spend 3.1x more annually than those who don't, and 73% of consumers modify spending to maximize program benefits.
- Tiered programs outperform flat structures – VIP and tiered programs deliver 1.8x higher ROI than single-tier programs, with top-tier members generating 73% higher AOV.
- Time to positive ROI is faster than expected – 44% of companies see positive loyalty ROI within just 6 months of launch.
Core ROI and Revenue Impact Statistics
Before presenting a loyalty program business case, you need hard numbers on what returns look like across the industry. These benchmarks establish the baseline your team should expect—and the upside potential when programs are well-executed.
1. 90% of Loyalty Programs Report Positive ROI With an Average Return of 4.8x-4.9x
The overwhelming majority of loyalty programs generate positive returns. When calculating your projected ROI, use 4.8x-4.9x as a conservative starting point for a well-designed program. Source: SellersCommerce
2. 83% of Program Owners Who Measure ROI Report Positive Returns, Generating 5.2x More Revenue Than Costs
The key phrase here is "who measure ROI." Companies that actively track program performance almost universally see positive returns. The 5.2x figure means that for every dollar invested in loyalty infrastructure, rewards, and management, the program generates $5.20 in attributable revenue. Source: CX Foundation
3. Top-Performing Loyalty Programs Boost Customer Revenue by 15-25% Annually
This is where well-optimized programs separate from average ones. A 15-25% revenue lift from your existing customer base represents significant incremental growth without increasing acquisition spend. Use this range when projecting the upside scenario for your business case. Source: SellersCommerce
4. Loyalty Members Generate 12-18% More Incremental Revenue Annually Than Non-Members
This figure isolates the "loyalty effect"—the additional revenue you capture specifically because customers are enrolled in your program versus customers who aren't. It's incremental, meaning it adds to your baseline rather than replacing existing revenue. Source: SellersCommerce
Retention Economics: The Cost-Benefit Foundation
Understanding loyalty program ROI requires context on the broader retention economics. These statistics establish why retention-first strategies outperform acquisition-heavy approaches.
5. It Costs 5-25x More to Acquire a New Customer Than to Retain an Existing One
This widely-cited benchmark frames the core economic argument for loyalty investment. Even at the low end (5x), retention is dramatically more efficient than acquisition. At the high end (25x), found in competitive categories with expensive paid media, the case for loyalty becomes overwhelming. Source: SellersCommerce
6. Increasing Customer Retention by Just 5% Can Boost Profits by 25% to 95%
Small retention improvements compound into significant profit gains. The range depends on your margins and customer lifetime value—higher-margin businesses see gains closer to 95%, while lower-margin categories land closer to 25%. Either end of the range justifies loyalty investment. Source: SellersCommerce
7. 65% of Company Revenue Comes From Repeat Business of Existing Customers
Your existing customer base is your primary revenue engine. This statistic reframes loyalty programs from "nice to have" to "protecting your core business." Without active retention efforts, you're leaving the majority of your revenue vulnerable to churn. Source: Queue-it
8. Customer Lifetime Value Increases Up to 25% for Engaged Loyalty Members
CLV is the metric that connects loyalty to long-term profitability. A 25% CLV increase means each customer is worth significantly more over their relationship with your brand—higher purchase frequency, larger order values, or longer customer lifespans. Source: Netguru
Customer Spending and Behavior Changes
Loyalty programs work because they change how customers behave. These statistics quantify exactly how member behavior differs from non-member behavior—critical data for projecting program impact.
9. Loyalty Program Members Who Redeem Rewards Spend 3.1x More Annually Than Those Who Don't
Redemption is the key engagement indicator. Members who actively use their rewards demonstrate 3.1x higher annual spending than members who accumulate points but never redeem. This stat argues for designing programs that encourage regular redemption rather than hoarding. Source: Netguru
10. Members Redeeming Personalized Rewards Spend 4.3x More Than Those Redeeming Non-Personalized Rewards
Personalization multiplies the redemption effect. When rewards feel tailored and relevant, spending increases by an additional 40% beyond standard redemption behavior. This supports investing in segmentation and personalized reward structures. Source: SellersCommerce
11. Repeat Customers Spend 67% More in Their Third Year Than in Their First Six Months
Customer value compounds over time. This statistic demonstrates why extending customer relationships—the core function of loyalty programs—directly increases revenue per customer. The longer you retain someone, the more they spend. Source: SellersCommerce
12. 73% of Consumers Modify the Amount They Spend to Maximize Loyalty Program Benefits
Nearly three-quarters of loyalty members actively adjust their purchasing to earn more rewards or reach the next tier. This behavioral change—spending more to earn more—is the mechanism through which loyalty programs increase customer lifetime value. Source: Queue-it
13. 66% of Consumers Say the Ability to Earn Rewards Changes Their Spending Behavior
Two-thirds of customers explicitly acknowledge that rewards influence where and how much they spend. This self-reported behavioral change confirms the economic impact of well-structured earning mechanisms. Source: SellersCommerce
Program Performance Benchmarks
When calculating projected ROI, you need realistic assumptions for program engagement. These benchmarks provide the activity and redemption rates to use in your models.
14. The Average Annual Activity Rate Across Loyalty Programs Is 59%
Just under 60% of enrolled members actively engage with their program in a given year. Use this as your baseline assumption for active participation—though well-designed programs with regular communication can push significantly higher. Source: Queue-it
15. Average Redemption Rate Is 50% of Rewards
Half of earned rewards get redeemed on average. This affects your liability calculations (unredeemed points) and your reward cost projections. Higher redemption rates indicate a healthier, more engaged program—but also require accurate budgeting for reward fulfillment. Source: Queue-it
16. Customers Who Redeem Loyalty Points Show a 50% Repeat Purchase Rate vs. 10.7% for Non-Redeemers
The gap between redeemers and non-redeemers is stark: 50% versus 10.7% repeat purchase rates. This 4.7x improvement in repeat purchasing demonstrates why driving redemption—not just enrollment—should be your primary program goal. Source: Rivo VIP Customer Statistics
VIP and Tiered Program Performance
Tiered structures consistently outperform flat loyalty programs. These statistics make the case for building aspirational tiers into your program design.
17. VIP Tier Customers Generate 73% Higher AOV and Make 3.6x More Purchases
Top-tier members are dramatically more valuable: higher order values and nearly four times the purchase frequency. When building your ROI model, segment projected value by tier to capture this differential. Source: Rivo
18. Premium Loyalty Members Show 60% Higher Spending Likelihood Versus 30% for Free Programs
Paid membership programs—where customers pay for enhanced benefits—show double the spending lift of free programs. This supports testing paid VIP tiers or membership models alongside traditional points programs. Source: Rivo
Investment Trends and Budget Allocation
These statistics show how the market is moving—useful context when positioning loyalty investment as aligned with industry best practices.
19. Loyalty Program Owners Allocate 31.4% of Their Marketing Budget to Consumer Loyalty and CRM
Nearly a third of marketing budgets now go toward loyalty and retention. This represents a 4.4% year-over-year increase, indicating sustained prioritization of retention over acquisition. Your loyalty budget request aligns with broader market trends. Source: LinkedIn
20. 80% of Loyalty Program Owners Plan to Increase Their Investments in Customer Loyalty Over the Next Three Years
The vast majority of brands with existing programs are expanding, not contracting. This forward-looking commitment signals that loyalty isn't a passing trend—it's becoming foundational to retention strategy. Source: Queue-it
Real-World ROI: Case Study Benchmarks
Theory matters, but results matter more. These case studies from Rivo clients demonstrate achievable ROI across different brand sizes and verticals.
21. Kitsch Generated $5.8M in Loyalty-Attributed Revenue With 8.7x Higher Repeat Purchase Rate for Top-Tier VIPs
The beauty brand activated 1.2M customers into their loyalty program, with VIP members showing 8.7x higher repeat purchase rates than standard customers. Total points earned: 1.8 billion with over 1 million redemptions. Source: Rivo
22. HexClad Drove $450K in Referral Revenue in 90 Days With a 92x ROI
The cookware brand's referral program generated nearly half a million dollars in the first quarter, with referred customers showing 17% higher AOV than other acquisition channels. The 92x ROI demonstrates the compounding value of turning loyal customers into advocates. Source: Rivo
23. OSEA Malibu Achieved 77% Repeat Purchase Rate Among Redeemers With $167 AOV (40% Above Site Average)
The skincare brand's loyalty members who redeemed rewards showed a 77% repeat purchase rate—and spent 40% more per order than the site average. Redeemers placed 5.5x more orders than non-members. Source: Rivo
How to Calculate Your Loyalty Program ROI
Benchmarks establish what's possible. Formulas let you project what's probable for your specific business. Here are the calculations you need to build a defensible ROI model.
Loyalty Program ROI Formula
(Program Revenue – Program Costs) / Program Costs x 100
Program Revenue includes: incremental revenue from members vs. non-members, referral revenue, and increased CLV attributed to the program.
Program Costs include: platform fees, reward redemption costs, marketing expenses, and operational overhead.
Example: If your program generates $500,000 in attributed revenue and costs $100,000 to run, your ROI = ($500,000 – $100,000) / $100,000 x 100 = 400% (or 4x return).
Customer Lifetime Value Formula
Average Order Value x Purchase Frequency x Average Customer Lifespan
Use this to compare CLV between loyalty members and non-members. The difference represents the loyalty program's impact on customer value.
Example: If members have an AOV of $85, purchase 4x per year, and stay active for 3 years, their CLV = $85 x 4 x 3 = $1,020.
Repeat Purchase Rate Formula
(Customers with 2+ Orders / Total Customers) x 100
Track this separately for loyalty members and non-members. The gap between these rates quantifies your program's impact on retention.
For detailed guidance on measuring retention, see our guide on how to calculate customer retention rate.
How Rivo Helps You Achieve These Benchmarks
The statistics above aren't theoretical—they're targets that brands hit with the right retention infrastructure. Rivo is built specifically for Shopify and Shopify Plus merchants who want to move from average performance to top-tier results.
Rivo powers loyalty programs, referral marketing, paid memberships, and customer accounts for over 7,000 brands, driving more than $1.5 billion in revenue. Here's how the platform addresses the benchmarks in this guide:
- Built-in ROI tracking: Rivo's analytics dashboard provides 20+ reports on program performance, points liability, and redemption trends—so you can measure and prove ROI from day one.
- VIP tier automation: Automatically segment customers into tiers based on spend, orders, or points earned. Brands like Kitsch have seen 8.7x higher repeat purchase rates from top-tier VIPs.
- Referral programs with fraud protection: Turn loyal customers into acquisition channels. HexClad generated $450K in referral revenue in 90 days with 20+ built-in fraud prevention tools protecting program integrity.
- Checkout-integrated redemption: 8+ checkout extensions let customers spend points as a payment method directly at checkout—reducing friction and increasing redemption rates.
- Klaviyo integration for segmentation: VIP tiers sync automatically to Klaviyo, enabling personalized campaigns based on loyalty status, points balance, and redemption behavior.
- Month-to-month pricing, no annual contracts: Rivo is 100% bootstrapped with $0 VC funding, which means pricing favors merchants over investors. Start at $49/month for the Scale plan.
For Shopify merchants ready to build a loyalty program that delivers measurable ROI, Rivo provides the tools, the integrations, and the support to make it happen. White-glove onboarding included on Plus and Enterprise plans.
Frequently Asked Questions
What is a good ROI benchmark for a loyalty program?
The industry average is 4.8x-4.9x ROI, meaning $4.80-$4.90 in attributed revenue for every $1 invested. Companies that actively measure ROI report even higher returns at 5.2x. When building your business case, use 4.8x as a conservative baseline and 10x+ as the optimized target.
How quickly can a business expect to see positive ROI from a new loyalty program?
44% of companies see positive ROI within 6 months. The timeline depends on your existing customer base size, program design, and how aggressively you promote enrollment. Brands with established email lists and active customers often see returns within the first quarter.
What's the difference between customer retention rate and repeat purchase rate?
Customer retention rate measures the percentage of customers you keep over a specific period. Repeat purchase rate measures the percentage of customers who make two or more purchases. Both matter for loyalty ROI, but repeat purchase rate is often more actionable since it directly measures purchasing behavior.
How do tiered loyalty programs impact ROI compared to single-tier programs?
Tiered programs deliver 1.8x higher ROI than single-tier programs. The structure creates aspiration, rewards best customers disproportionately, and motivates mid-tier customers to increase spending to reach the next level. If you're designing a new program, build in at least 2-3 tiers.
What metrics should I track to prove loyalty program value to leadership?
Focus on: program ROI (revenue vs. costs), repeat purchase rate lift (members vs. non-members), customer lifetime value differential, redemption rate, and revenue attribution percentage. These connect directly to financial outcomes and demonstrate clear program impact.
