As we head into 2025, the loyalty landscape is set for a shake-up. The global loyalty market was valued at approximately 11.71 billion U.S. dollars in 2023 and is projected to surpass 41.2 billion dollars by 2032 - meaning the potential is huge.
With customer expectations soaring and technology evolving faster than ever, how can brands keep up? Let’s dive into the trends shaping the future of loyalty programs—and how you can stay ahead of the curve.
Sustainable and purpose-driven programmes
In 2025, sustainable loyalty programs won’t just be a nice-to-have—they’ll be a must-have for brands looking to thrive. Consumers are making it clear: they want to support brands that care. In fact, 59% of British consumers prefer sustainable brands.
And it doesn’t stop there—33% of consumers believe loyalty programs should offer rewards from brands that support sustainable causes. So, whether it’s eco-friendly rewards or donations to social causes, making purpose part of your program is key.
Emerging technologies
AI isn’t just a buzzword anymore—it’s a game-changer for loyalty programs. You can use AI to analyse customer data and deliver personalised experiences that truly resonate. Imagine surprising your most loyal customers with rewards they didn’t even know they wanted! With Augmented Reality (AR), Virtual Reality (VR), and the Internet of Things (IoT) stepping into the mix, brands can create immersive, interactive experiences that keep customers coming back for more.
Emphasis on emotional loyalty
Forget one-size-fits-all discounts—2025 is all about making customers feel valued. Emotional attachment already accounts for 43% of business value.
When customers feel appreciated, the results speak for themselves: 76% stick around, 80% spend more, and 87% recommend the brand to others. The takeaway? Connect with your customers on a deeper level, and they’ll reward you with their loyalty—and their wallets.
Subscription-based loyalty models
Subscription-based programs are on the rise, and for good reason—they’re all about creating consistent value. In fact, 53% of consumers paid for a customer loyalty program in 2023, up from 32% in 2022 and just 17% in 2021. This upward trajectory highlights a growing consumer appetite for premium loyalty benefits, signalling that in 2025, brands must invest in offering truly valuable, personalised experiences to stay competitive in this space.
For brands, these programs guarantee recurring revenue while offering customers VIP perks that keep them hooked. Think early access to sales, free shipping, and exclusive products—what’s not to love?
Enhanced data security, privacy, and fraud prevention
With great data comes great responsibility. Customers are more aware than ever about how their data is used—and they expect brands to handle it with care. That’s why transparent data practices and robust security measures are non-negotiable.
But here’s the kicker—loyalty fraud now accounts for 31% of all fraud attempts against online merchants. That’s where having a hands-on fraud prevention strategy, like Jigsaw’s, becomes indispensable. With Jigsaw managing your gift card program, you’re protected against fraud, with every suspicious transaction requiring manual approval by a member of our team. Talk about peace of mind!
Gamification and interactive engagement
Let’s face it—loyalty programs don’t have to be boring. Adding a dash of gamification can turn them into something your customers actually love engaging with. Whether it’s points, badges, or challenges, gamification creates excitement and keeps customers coming back for more.
And the results are hard to ignore—brands that incorporate gamification into their engagement strategies see a 47% rise in engagement, a 22% increase in loyalty, and a 15% boost in brand awareness.
So, what’s the big takeaway?
Loyalty programs are evolving—and fast. From AI-driven personalisation to fraud prevention and eco-conscious rewards, 2025 is all about meeting customer expectations while staying ahead of the competition. If you need a partner to help make it happen - we’ve got you.
Ready to build a loyalty program your customers will love? Get in touch today!
