7 Best Loyalty Programs for Small Businesses in 2025
We will review the top small business loyalty software for you, so you can make the best choice to increase customer retention and boost repeat sales.
Top 7 Loyalty App Providers for Small Businesses
What are customer loyalty programs?
A Customer Loyalty Programs is a program installed by businesses to reward customers who frequently buy their products or services. The idea is basic: with every purchase that the customer makes with the brand, they should receive increasing rewards or incentives. Rewards come in many forms, such as discounts, special offers, free items, or exclusive access to new products. The overall purpose is to keep customers happy, build loyalty for repeat visits, and establish a long-lasting relationship with the business.
Loyalty programs are a way of businesses saying, "Thank you for choosing us!" It's like getting a tiny bonus each time you shop, which keeps you coming back.
The benefits of setting up a customer loyalty program
The benefits of loyalty programs are quite significant for customers and businesses as well. For customers, the perks are self-evident: money-saving, exclusive perks, and personalized experiences. But businesses also benefit hugely.
Customer Retention
Customers earning rewards, therefore, become more likely to return, reducing spending on advertising and marketing.
Customer Engagement
A loyalty program thus gives very precious insights into customer buying patterns to facilitate tailored products and services.
Brand Image Building
When customers feel appreciated, they will recommend the brand to their friends and family, therefore boosting its image through word-of-mouth marketing.
A loyalty program represents an efficient win-win situation: customers feel their loyalty is appreciated, and businesses build long-standing relationships that propel growth.
All types of loyalty programs (we will go through the softwares soon)
There exist many types of loyalty programs, each sporting its unique strength. The right kind of program shall be determined by your type of business and what appeals most to your customers, these are:
Points Program
This is the most common form; it requires a customer to earn points for every purchase - which they can trade-off with discounts, freebies, or special offers at a later date.
Tiered Loyalty Programs
Customers have to work their way through the ranks or tiers dependent upon how much they spend. The higher the rank, the greater the reward and perks.
Cashback Programs
A business gives the customer a percentage of each extra budget, paid off as cash or credit to be redeemed later off a potential purchase. This is uncomplicated and appealing one in outlook.
Subscription Programs
Under this loyalty program, consumers pay a fee to access exclusive benefits like product discounts, early product access, or allocation of special services. This approach creates a sense of belonging among customers.
Punch Card Programs
Another popular approach in cafes and small retail stores is stamp cards - where every time someone buys, they receive a stamp. Eventually, they gain love or reduced-price bonuses.
By doing this, you will know what type of loyalty program would suit best according to your customers' interest and your business requirements.
Clavaa
Innovative Payment-Based Loyalty App For SMB's
Clavaa reimagine small business loyalty with a digital wallet coupled with automatic rewards. The platform eliminates payment-processing fees while giving the customer instant cash back on every purchase. In this whole game, a unique approach transforms traditional payments paid into a loyalty reward: a win-win for retailers and shoppers alike.
Tiered Loyalty Rewards Program
Standard 3% cashback with VIP tier offering 5% plus special perks
Payment & Rewards App
Combined payment and rewards in one seamless app
Customer Loyalty Analytics
Track visit frequency, spending patterns, and program engagement
Marketing & Loyalty Tools
Run targeted promotions based on customer segments
How It Works
Customers will find it options for payments via the Clavaa wallet app at your store. They earn cashback rewards for every purchase made. To start with, the base tier earns 6% (or whatver you set) and VIP customers earn 6% that can only be redeened at your store. The store owner gets the full pament without any fees to fund the loyalty program. This system ties in with your existing PoS, so you do not need new hardware, and it requires very little training of your staff.
Key Advantages
Considerations
Key Advantages
Considerations
Implementation & Support
Clavaa provides comprehensive support throughout your loyalty program launch:
- Guided POS integration and setup
- Staff training and onboarding resources
- Marketing materials to promote adoption
- Ongoing technical support via email and chat
FiveStars
Loyalty & Customer Retention Solution
FiveStars is a cloud-based customer Retention platform. Very simply, it takes the best loyalty program features and properly merges them with marketing fun to turn casual shoppers into regular customers without significant effort on the part of the retailer. The loyalty platform's show-stopping AutoPilot does this automatically and engages the customers in a chic fashion: with personalized offers and reminders that dunked the customers into a funnel, based on their activities. This repetitive process makes it a very attractive kind of offer that becomes appealing for the demanding retailers.
AutoPilot Loyalty Marketing
Automated campaigns that bring customers back based on their behavior
Multi-Channel Rewards
Points tracking via phone number, app, or integrated payments
Customer Loyalty Analytics
Detailed insights into customer behavior and campaign performance
Automated Messaging
Text, email, and push notifications for promotions and updates
Customer Experience
Customers can join your loyalty program by entering their phone number at checkout or using the FiveStars app. The system automatically tracks points, sends reward notifications, and even delivers personalized offers to bring customers back. This low-friction approach, combined with instant gratification through welcome bonuses and regular rewards, keeps customers engaged and spending.
Key Advantages
Considerations
Key Advantages
Considerations
Integration & Support
FiveStars offers several integration options:
- Direct POS integration with major providers
- Standalone tablet solution for any setup
- Optional integrated payment processing
- Marketing tool connections (email, SMS)
TapMango
Your Business's Custom Loyalty App
TapMango is provided with loyalty features such as a custom-branded loyalty app, integrated online ordering, and complete marketing tools to help small businesses. This all-in-one approach allows you to compete with larger retailers by offering a sophisticated digital experience in your own branding.
Custom Branded App
Your own iOS/Android app with loyalty, ordering, and rewards
Flexible Points System
Multiple ways to earn points including purchases, check-ins, and referrals
Integrated E-commerce
Built-in online ordering with automatic rewards tracking
Marketing Suite
SMS, email, and push notification campaigns
Complete Customer Engagement
Besides the regular loyalty features, TapMango allows for greater customer touchpoints. With the branded app, customers can order products and keep track of rewards and earn personalized offers. A tablet in-store serves as a convenient option for customers who might not want to use the app for check-in, allowing everyone an opportunity to take advantage of your loyalty program.
Key Advantages
Considerations
Key Advantages
Considerations
Integration & Support
System Integration
- Major POS systems supported
- Third-party delivery services
- Email marketing platforms
Support Services
- Free unlimited support
- Dedicated account manager
- Free design customization
System Integration
- Major POS systems supported
- Third-party delivery services
- Email marketing platforms
Support Services
- Free unlimited support
- Dedicated account manager
- Free design customization
Square Loyalty
Seamlessly Integrated Loyalty Platform
Square Loyalty would naturally build atop the Square POS, offering a frictionless way of converting an occasional customer into a regular. Allowing customers to enroll using their phone number, it automatically tracks loyalty rewards so that everything flows seamlessly into your existing checkout; it is definitely easy for both the staff and customers.
Phone Number Enrollment
Simple signup process with no apps or cards required
Automatic Notifications
SMS updates for points earned and rewards available
POS Integration
Seamless checkout flow in Square ecosystem
Real-time Analytics
Track loyalty impact on customer behavior
How It Works
Customer Enrollment
Customers simply provide their phone number at checkout to join. No forms, cards, or apps needed.
Automatic Tracking
Points accumulate automatically with each purchase, and customers receive SMS updates on their progress.
Easy Redemption
When rewards are available, they automatically appear during checkout for easy one-tap redemption.
Key Advantages
Considerations
Key Advantages
Considerations
Performance Metrics
Square Loyalty provides clear insights into program performance through the Square Dashboard:
- Visit frequency tracking
- Loyalty vs non-loyalty spending
- Reward redemption rates
- Customer retention metrics
Smile.io
Complete E-commerce Small Business Loyalty Platform
Smile.io is a feature-rich loyalty platform specifically designed for online retailers. Well-known for its freemium subscription offer, Smile.io makes it simple for small companies to create advanced loyalty programs that include points, referrals, and VIP tiers—all from an easy-to-use dashboard with major E-commerce platform integrators.
Points & Rewards Program
Flexible point system with customizable earning rules and rewards
Referral Management
Automated tracking of customer referrals and reward fulfillment
VIP Program
Multi-tier loyalty system with escalating benefits
E-commerce Integration
One-click setup with major platforms like Shopify
Platform Compatibility
Key Advantages
Considerations
Key Advantages
Considerations
Engagement Features
Point Earning Actions
- Purchases and referrals
- Social media follows
- Account creation
- Birthday rewards
Reward Options
- Percentage discounts
- Fixed amount off
- Free products
- VIP perks
Kangaroo Rewards
Enterprise Features for Small Business
Kangaroo Rewards brings enterprise-grade loyalty capabilities to small and medium businesses through an all-in-one platform. With features like custom-branded mobile apps, automated marketing, and comprehensive analytics, it enables businesses to create sophisticated loyalty experiences that rival major brands.
Branded Mobile App
Custom-branded loyalty app with your business identity
Marketing Automation
Triggered campaigns and personalized promotions
Multi-Channel Rewards
Points and rewards across all sales channels
Customer Analytics
Detailed insights and segmentation capabilities
Integration Ecosystem
POS Systems
- Shopify POS
- Lightspeed
- Clover
- Vend
- Square (API)
E-commerce
- Shopify
- Magento
- WooCommerce
- BigCommerce
Marketing
- Email platforms
- SMS services
- Social media
- Review systems
Key Advantages
Considerations
Key Advantages
Considerations
Platform Capabilities
Loyalty Features
- Points and rewards program
- VIP tiers and benefits
- Referral program management
- Digital gift cards
Marketing Tools
- Automated campaigns
- Customer segmentation
- Multi-channel messaging
- Promotional tools
Loyalzoo
Digital Loyalty Made Simple
Loyalzoo modernizes the traditional punch card system with a straightforward digital solution. Using just a phone number for identification, customers can earn points or stamps that automatically track their visits and purchases. This no-frills approach makes it perfect for small businesses looking to boost customer retention without complexity.
Digital Punch Card
Points or stamps system with phone number identification
Simple Rewards
Customizable rewards based on points or visits
Basic Marketing
Send up to 2 monthly promotions to members
POS Integration
Works with popular point-of-sale systems
How It Works
Quick Enrollment
Customers join with just their phone number at checkout - no forms or app downloads required.
Point Collection
Staff enters the customer's phone number to add points or stamps for each visit or purchase.
Reward Redemption
Once enough points are earned, rewards are automatically available at checkout for easy redemption.
Key Advantages
Considerations
Key Advantages
Considerations
Compatibility
POS Systems
- Clover
- Lightspeed
- Epos Now
- Talech
E-commerce
- Shopify
- BigCommerce
- WooCommerce
- Magento
Access Options
- Phone number
- Mobile app
- Web portal
- SMS
Choosing Your Ideal Loyalty Platform
The Next Generation of Loyalty Apps
By eliminating processing fees and automatically converting those savings into customer rewards, Clavaa creates a unique win-win scenario for both retailers and their customers.
Zero Processing Fees
Eliminate payment processing costs while rewarding customers, creating a self-funding loyalty program.
Automatic Rewards
Seamlessly combine payments and rewards, driving customer retention without added complexity.
Enterprise Features
Access sophisticated loyalty capabilities typically reserved for large retailers.
Finding Your Best Fit
Small Independent Retailers
- Clavaa - Zero processing fees with automatic rewards
- Loyalzoo - Simple digital punch card system
- Square Loyalty - For existing Square POS users
Growing Multi-Location Retailers
- Clavaa - Maximum profit through eliminated fees
- TapMango - Full-featured marketing automation
- Kangaroo - Omnichannel engagement platform
E-commerce Focus
- Clavaa - Integrated payments and loyalty
- Smile.io - E-commerce specialized platform
- FiveStars - Network-based loyalty solution
Key Implementation Factors
When implementing your loyalty program, consider these essential elements:
- Total Cost Impact: Consider not just the platform fee, but potential savings through features like Clavaa's zero processing fees.
- Customer Experience: Evaluate how seamlessly the solution integrates into your existing checkout process.
- Growth Potential: Choose a platform that can scale with your business and adapt to changing needs.
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