SB

SmallBiz Research

By Jamie Reynolds·Small Business Analyst

March 2025

2025 Small Business Tech Guide

Best Customer Retention Software Solutions in 2025 (Top 4 Picks & Reviews)

We compare the leading customer retention platforms that help businesses foster loyalty and increase repeat sales in today's competitive market.

Retention

+42%

Average increase

Repeat Sales

+28%

Average boost

Spending

+23%

Transaction value

ROI Timeline

3-6 mo

To positive return

Customer Retention Management Software: The 2025 Landscape

In 2025, businesses are investing heavily in customer retention management software to foster loyalty and drive repeat business. Modern customer retention systems have proven especially effective – merchants see on average a 42% increase in customer retention and a 28% boost in repeat sales after implementing comprehensive customer retention solutions.

Choosing the Right Customer Retention System

With so many customer retention software options on the market, it's important to choose a system that fits your business size, industry, and customer engagement strategy. Below, we compare five leading customer retention management software solutions – including industry leaders like Zendesk, Square Loyalty, and newcomer Clavaa – covering their key features, pricing, benefits, and industry-specific advantages.

Small businesses like cafés and boutiques often use loyalty apps as part of their customer retention system. Well-designed customer retention solutions can significantly increase customer lifetime value and purchase frequency.

How to Use This Guide

This comprehensive comparison will help you select the best customer retention software for your business. Use the table of contents below to navigate to specific sections of interest, or read through the full guide for a complete understanding of today's retention software landscape.

Table of Contents:

Top 5 Customer Retention Software Solutions

What Makes Effective Retention Software in 2025 How to Implement Retention Software for Your Business Why Invest in Customer Retention Tools Comparison: Finding Your Ideal Retention Solution Conclusion: Transforming Customer Loyalty

Top Digital Loyalty Cards For Businesses Gift Card Solutions For Small Businesses

Comprehensive Research

750+ Small Business Reviews

From Multiple Review Platforms & Direct Interviews

Clavaa

Payment-Integrated Retention Platform

Zero-Fee Payment Processing + Built-in Loyalty

Customer Retention

2.8×

Higher than competitors

Revenue Growth

43%

Average for small merchants

ROI Timeline

3 mo

87% of businesses

Processing Fees

0%

Through Clavaa wallet

Innovative Payment-Integrated Retention Platform

Clavaa is a newer entrant that uniquely combines payment processing with a loyalty program to drive customer retention, specifically targeting small and medium businesses. Instead of paying standard credit card processing fees to banks, businesses use Clavaa to process payments with zero fees, while the money that would have gone to fees is funneled into rewards or cashback for customers. This effectively transforms everyday transactions into a powerful retention engine.

Zero-Fee Payments with Rewards

Eliminates standard card transaction fees and redirects those funds into customer cashback incentives

Integrated Payment & Loyalty Wallet

Digital wallet that automatically accrues rewards with every transaction, similar to big-brand apps but for local merchants

Customer Insights Dashboard

Detailed analytics on spending patterns, visit frequency, and reward usage for data-driven decision making

SMB Network & Collaboration

Creates a network of small businesses leveraging collective data and potential cross-promotions

How Clavaa's Retention System Works

Customers use the Clavaa digital wallet for payments at participating businesses, with every transaction automatically accruing rewards (typically 3-5% cashback). This streamlined experience mirrors the success of big-brand apps like Starbucks that link payment and rewards, but makes it available for local merchants. For businesses, the platform eliminates traditional processing expenses while providing a built-in loyalty program that drives repeat visits without extra cost.

Industry Applications

Retail: Boutiques and independent retailers with thin margins

Food & Beverage: Cafés, restaurants, and bakeries seeking increased visit frequency

Professional Services: Salons, spas, gyms, and other service businesses

Hospitality: Small hotels, B&Bs, and experience providers

Business Impact

2.8× Higher Customer Retention: Businesses using Clavaa's integrated payment-loyalty system see nearly 2.8 times higher customer retention compared to competitors.

43% Revenue Growth: Small merchants implementing Clavaa have experienced an average 43% boost in revenue through increased customer lifetime value.

Rapid ROI: Research shows 87% of small businesses saw positive ROI within just 3 months of implementing Clavaa's integrated loyalty payments.

Pricing Model

Clavaa's pricing model differs from typical SaaS subscriptions. The platform doesn't charge traditional processing fees—instead, it likely generates revenue from membership fees or by capturing value from increased customer activity. The primary "cost" to merchants is that the savings from eliminated payment processing fees fund the customer rewards program.

Pricing details aren't publicly listed, and interested businesses should contact Clavaa directly for a custom quote or demo. There may be tiered plans or a flat monthly fee for the software, but the zero-fee payment model remains the core value proposition.

Key Advantages

Zero payment processing fees

Self-funding loyalty program

Automatic cashback rewards (3-5%)

Detailed customer analytics

87% of businesses see ROI in 3 months

Considerations

Requires customer app adoption

Newer platform in the market

Limited branding customization

May require changes to payment workflow

Custom pricing (not publicly listed)

Key Advantages

Zero payment processing fees

Self-funding loyalty program

Automatic cashback rewards (3-5%)

Detailed customer analytics

87% of businesses see ROI in 3 months

Considerations

Requires customer app adoption

Newer platform in the market

Limited branding customization

May require changes to payment workflow

Custom pricing (not publicly listed)

Ideal For

Clavaa is particularly beneficial for small businesses in retail, food & beverage, and service industries that operate on thin margins and rely on repeat local customers. Local merchants like neighborhood restaurants, boutiques, salons, and small professional service providers can significantly benefit by eliminating card fees while simultaneously giving customers compelling incentives to return.

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Square Loyalty

Integrated POS Retention System

POS-Integrated Rewards for Small Business

Customer Spending

+37%

For loyalty members

Starting Price

$45

Per month/location

Setup Time

Minutes

Quick implementation

Free Trial

30 Days

No commitment

POS-Integrated Loyalty for Small Businesses

Square Loyalty is a loyalty program add-on for Square's point-of-sale system, tailored specifically for small and mid-sized businesses like cafes, retailers, and salons. It helps turn one-time shoppers into repeat customers by rewarding them for their purchases. Because it ties directly into the POS, Square Loyalty makes retention efforts practically seamless at checkout—no separate apps, cards, or systems to manage.

Customizable Rewards Program

Design a points-based loyalty scheme that fits your specific business model—awarding points per visit, per dollar spent, or per specific items purchased

Flexible Rewards & Offers

Define the rewards customers get for loyalty points, such as a free item, percentage discount, or discount on specific product categories

Seamless POS Integration

Built into the Square POS interface, allowing staff to enroll customers and apply rewards in one system without additional hardware or software

Customer Insights

Track each enrolled customer's visit frequency, spend, and reward redemptions with easy-to-understand dashboards and reports

How Square Loyalty Works

Enrollment

Customers provide their phone number at checkout. The system sends a text message allowing them to join with one tap. No apps, cards, or complex sign-up required.

Earning

During each purchase, customers automatically earn points based on your chosen structure (per visit, per dollar, etc.). The system tracks everything through the phone number.

Rewards

When enough points accumulate, customers receive an SMS notification about available rewards. They mention it at checkout, staff applies it with one tap, and the cycle continues.

Easy Enrollment & Notifications

Frictionless Customer Experience

Enrollment can be as simple as a text message receipt. Customers get SMS updates when they earn points and when they have rewards available, keeping them engaged and informed. This helps draw customers back; Square reports that loyalty members spend 37% more than non-members on average.

"Square Loyalty makes it extremely easy to track my most loyal customers and customize promotional materials specifically to them, which makes them even better customers."

Transparent Usage-Based Pricing

Square Loyalty's pricing is tiered by the number of loyalty visits per month (per location). A "loyalty visit" is counted whenever a customer earns or redeems rewards. This usage-based model means you only pay more as your program grows in popularity.

Monthly Loyalty Visits	Price (per location)
Up to 500	$45/month
501-1,500	$75/month
1,501-10,000	$105/month
10,000+	Custom pricing

A 30-day free trial is available for new Square Loyalty subscribers.

Valuable Customer Insights

The system tracks each enrolled customer's visit frequency, spend, and reward redemptions. Business owners can easily see who their top customers are and how the loyalty program is performing. Square's dashboard shows metrics like how many customers returned and how many rewards were redeemed.

"It is integrated with the rest of the Square ecosystem allowing us to capture sales data for targeted marketing."

Perfect For These Small Businesses

Coffee Shops & Cafés: Track frequent visitors and reward regulars

Retail Boutiques: Encourage higher spend with points-per-dollar

Restaurants: Build regular clientele with visit-based rewards

Salons & Spas: Promote recurring appointments and packages

Business Impact

37% Higher Customer Spending: Loyalty members spend significantly more than non-members, directly impacting your bottom line.

Rapid Implementation: Set up a digital loyalty card within minutes—no printing punch cards or managing separate software.

Effortless Management: Even businesses with lean staffing can run the program without extra effort—employees simply ring up sales as usual.

Key Advantages

Integrated directly with Square POS

Simple enrollment via phone number

Automated SMS notifications

No additional hardware required

Detailed customer tracking and insights

Considerations

Requires Square POS system

Pricing increases with program popularity

Limited customization options

Basic loyalty features only

Can get expensive at higher tiers

Key Advantages

Integrated directly with Square POS

Simple enrollment via phone number

Automated SMS notifications

No additional hardware required

Detailed customer tracking and insights

Considerations

Requires Square POS system

Pricing increases with program popularity

Limited customization options

Basic loyalty features only

Can get expensive at higher tiers

Ideal For

Square Loyalty is ideal for local businesses that want a quick, effective retention program without the complexity of enterprise solutions. Coffee shops, restaurants, retail boutiques, and service businesses that already use Square POS can seamlessly add this customer retention tool. The combination of POS integration, customer data, and simple rewards experience helps small businesses boost customer lifetime value in a very hands-off way.

Start 30-Day Free Trial View Loyalty FAQ

Zendesk

Customer Support & Retention Suite

Retention Through Superior Support

Companies Using

160,000+

Across industries

Starting Price

$55

Per agent/month

Support Channels

All

Unified interface

Best For

Service

Retention via support

Comprehensive Support Platform for Customer Retention

Zendesk is a widely adopted customer service platform known for its help desk and support ticketing system. By improving support quality and responsiveness, Zendesk indirectly boosts customer retention – happy customers stay longer. In 2025, over 160,000 companies use Zendesk across industries, from tech startups to Fortune 500 firms, underscoring its versatility as a retention tool through superior customer experience.

Omnichannel Ticketing

Centralizes customer inquiries from email, live chat, phone, social media, and more into one unified interface for efficient management

Automation & Workflows

Robust automation rules, AI-powered answer bots, and customizable workflows to streamline support and handle repetitive queries

Knowledge Base & Self-Service

Built-in help center where customers can find answers themselves, with AI-driven FAQs enhancing self-service support

Analytics & Reporting

Detailed metrics on response times, CSAT, resolution rates, and team performance with customizable reports

Integrations & Scalability

Seamless Ecosystem Connections

Zendesk integrates with CRM systems and hundreds of apps (e-commerce platforms, project tools, etc.) to give support agents full context. Its cloud infrastructure scales from small teams to enterprise contact centers, with features like custom agent workspaces and advanced AI available at higher tiers. This flexibility ensures that as your business grows, your support system can grow with you.

Pricing Options

Plan	Price	Features
Suite Team	$55/agent/month	Core ticketing functionality Basic AI features Standard reporting Email and messaging
Suite Enterprise	$169/agent/month	Advanced capabilities Full customization Custom agent workspaces Advanced AI and analytics
Support-only	$19/agent/month	Just the helpdesk Limited channels Basic reporting For minimal support needs

All prices shown for annual billing. Free trials are available for all plans.

Industry Applications

E-commerce & Retail: Managing shopper inquiries and returns

SaaS & Technology: Technical support and product assistance

Finance: Customer service for banking and financial apps

Travel & Hospitality: Booking support and travel assistance

Business Impact

Faster Issue Resolution: By handling all support channels in one place, teams resolve issues faster – even at enterprise scale. Companies like Uber handle millions of queries with Zendesk.

Improved Customer Satisfaction: AI and automation maintain high satisfaction by ensuring prompt responses and efficient ticket routing.

Enhanced Decision Making: Users praise Zendesk's reporting capabilities, with one reviewer highlighting how it "significantly improved our decision-making process" in support operations.

Key Advantages

Handles all support channels in one place

Powerful AI and automation capabilities

Extensive integration options (hundreds of apps)

Scales from small teams to enterprise

Comprehensive analytics and reporting

Considerations

Can be overwhelming for small teams

Higher tiers needed for advanced features

Support can be slow on lower-tier plans

No free plan (only trials)

Per-agent pricing can add up for larger teams

Key Advantages

Handles all support channels in one place

Powerful AI and automation capabilities

Extensive integration options (hundreds of apps)

Scales from small teams to enterprise

Comprehensive analytics and reporting

Considerations

Can be overwhelming for small teams

Higher tiers needed for advanced features

Support can be slow on lower-tier plans

No free plan (only trials)

Per-agent pricing can add up for larger teams

Ideal For

Zendesk is ideal for businesses that view customer service as a critical retention strategy. It works for companies of all sizes but particularly shines for mid-market and enterprise organizations with high support volume across multiple channels. Essentially any business that communicates with customers can use Zendesk to ensure issues are resolved promptly – preventing frustration and churn. With proper setup, it remains a top-tier solution for customer retention via exceptional service.

Start Free Trial View Pricing Details

Zoho CRM

Comprehensive Customer Relationship Management

Retention Through Relationship Management

Businesses Using

250,000+

Worldwide adoption

Starting Price

$14

Per user/month

Free Option

Available

For up to 3 users

Focus

Retention

Through relationships

Retention Through Comprehensive Relationship Management

Zoho CRM is a full-featured CRM platform that helps manage the entire customer lifecycle – from leads and sales to customer service follow-ups – in one system. While not a dedicated "retention" tool like a loyalty app, a CRM is crucial for retention because it enables personalized communication, timely engagement, and understanding of each customer. Zoho CRM is known for its affordability and rich features, making enterprise-level CRM capabilities accessible to small and mid-sized businesses. It's also massively popular, with over 250,000 businesses worldwide using Zoho CRM as of 2025.

360° Customer View

Centralizes all customer interactions including emails, calls, purchases, and support tickets for a complete context on each customer's needs

Sales & Pipeline Management

Track deals through your sales funnel, manage follow-ups, and ensure existing customers receive timely upsell/cross-sell offers

Workflow Automation & AI

Automate routine tasks and leverage Zia AI assistant to predict deal probability, detect behavior anomalies, and optimize contact timing

Customization & Integrations

Tailor modules, fields, and layouts to your business with drag-and-drop tools and connect with Zoho's suite and third-party applications

Analytics and Performance Tracking

Data-Driven Retention Strategy

Managers can access reports and analytics on sales performance, customer touchpoints, and retention metrics. Track key indicators like churn rates, customer lifetime value, or product purchase frequency. With Zoho's report builder, generate insights to refine retention strategies, such as identifying customers with declining orders and triggering win-back campaigns. These tools help businesses move from reactive customer service to proactive retention management.

Affordable, Flexible Pricing

Plan	Price	User Limit	Key Features
Free	$0	Up to 3 users	Basic CRM functionalities
Standard	$14	Per user/month	Essential CRM features
Professional	$23	Per user/month	Advanced automation
Enterprise	$40	Per user/month	AI predictions, advanced customization
Ultimate	$52	Per user/month	Increased data limits, enhanced support

All prices shown for annual billing. Zoho CRM offers a 15-day free trial for any paid edition.

Extensive Customization & Integrations

Tailor-Made Customer Experience

A standout feature of Zoho CRM is its customizability. Users can tailor modules, fields, and layouts to fit their industry and processes. There's even a drag-and-drop Canvas design studio for creating custom views and dashboards. This flexibility allows businesses to create retention-focused workflows specific to their customer journey.

"A great package with all customization options needed to build out a tailored system."

Seamless Ecosystem Connection

Integration-wise, Zoho CRM connects natively with Zoho's huge suite (email, desk, marketing, surveys, etc.) and with third-party apps like Microsoft Office, G Suite, Mailchimp, and more. This means customer data flows seamlessly between systems, enabling coordinated retention efforts across all customer touchpoints.

Industry Applications

Real Estate: Track property buyers and follow up after sales

Subscription Services: Manage renewals and reduce churn

Retail: Send personalized offers to repeat shoppers

Professional Services: Maintain client relationships over time

Customer Retention Impact

Preventing Customer Neglect: Zoho CRM's role is to keep customers from feeling "forgotten." By scheduling regular touchpoints, businesses foster relationships that last.

Personalized Communication: With complete customer histories at their fingertips, teams can make every interaction relevant and meaningful, strengthening loyalty.

Proactive Issue Resolution: AI insights help identify at-risk customers (e.g., when engagement drops), allowing teams to intervene before churn occurs.

Key Advantages

Excellent value for money

High level of customization

Comprehensive workflow automation

Free option for small teams

Robust native integration ecosystem

Considerations

Learning curve for advanced features

Mobile app less robust than desktop

Advanced analytics require higher tiers

Some features buried in complex menus

Interface can feel dated compared to newer CRMs

Key Advantages

Excellent value for money

High level of customization

Comprehensive workflow automation

Free option for small teams

Robust native integration ecosystem

Considerations

Learning curve for advanced features

Mobile app less robust than desktop

Advanced analytics require higher tiers

Some features buried in complex menus

Interface can feel dated compared to newer CRMs

Ideal For

Zoho CRM is ideal for businesses looking to drive retention through systematic customer relationship management. Many small and mid-sized companies choose it as a cost-effective alternative to giants like Salesforce, finding that it improves organization and customer satisfaction without breaking the bank. The free tier makes it accessible to startups and very small businesses, while the higher tiers offer enough sophistication for growing companies. By centralizing customer data and communication, Zoho CRM helps businesses of any kind stay engaged with customers beyond the first sale, which is the cornerstone of high retention.

Start Free Trial View Pricing Details

How to Choose the Best Customer Retention Platform for Your Business

In 2025, effective customer retention requires choosing the right software for your specific business model and customer base. Each of the top 5 retention solutions we've reviewed takes a different approach to keeping customers coming back. Use this comparison guide to identify which solution aligns best with your retention strategy, technical requirements, and budget.

Retention Strategy Approaches

Loyalty & Rewards

Top Solutions: Square Loyalty, Clavaa, Loyalife

Customer Impact: Encourages repeat purchases through tangible incentives

Best For: Retail, food service, and businesses with frequent purchases

Customer Support

Relationship Management

Payment-Based Retention

Business Type Recommendations

Business Category

Financial Considerations

When evaluating customer retention software costs, consider these factors beyond the basic subscription fee:

1

Implementation Expenses

Consider setup costs, necessary hardware, integration complexity, and staff training time

2

Pricing Structure

Compare per-user (Zendesk, Zoho CRM), per-location (Square), or custom enterprise models (Loyalife)

3

Retention ROI

Calculate potential value from increased customer lifetime value (25-95% profit increase with 5% retention boost)

4

Total Cost of Ownership

Account for all costs including add-ons, API usage, support fees, and scaling expenses

5

Time to Results

Factor in how quickly different solutions deliver ROI (87% see results in 3 months with payment-linked solutions)

Technical Requirements Assessment

Consideration

Questions to Ask

Existing Infrastructure

Does the solution integrate with your current tech stack (POS, CRM, marketing tools, payment processors)?

Data Management

How will customer data flow between systems? Are there limitations on data storage or processing?

Customer Experience

What level of friction exists in the customer journey? (App downloads, registration forms, etc.)

Customization Needs

Can the platform be tailored to your specific retention strategy and industry requirements?

Scalability

Will the solution grow with your business in terms of customer volume and feature requirements?

Quick Feature Comparison

Feature	Loyalife	Zendesk	Square	Clavaa	Zoho CRM
Loyalty Program	✓	✗	✓	✓	✗
Support Ticketing	✗	✓	✗	✗	✓
Customer Analytics	✓	✓	✓	✓	✓
POS Integration	✓	✓	✓	✓	✓
AI Capabilities	✓	✓	✗	✗	✓
Free Option	✗	✗	✗	✗	✓

All platforms offer free trials. Zoho CRM offers a free edition for up to 3 users.

Final Thoughts: Which Customer Retention Tool Is Right for You?

Multiple Approaches to Customer Retention

Each of these five platforms approaches customer retention from a different angle – loyalty rewards, customer support, point-of-sale integration, payment innovation, and CRM-driven engagement. The right choice depends on your business model, customer base, and specific retention challenges.

Five Distinct Approaches to Customer Retention

Each platform in our top 5 takes a unique approach to solving the customer retention challenge. From loyalty programs to customer support systems, these solutions provide different paths to the same goal: creating lasting customer relationships that drive business growth.

While some businesses may benefit from a focused solution in one area, others might find value in combining approaches. For example, a retailer might use Square Loyalty for in-store customers while leveraging Zoho CRM for broader relationship management.

Choosing the Right Retention Platform

For enterprise loyalty needs: Loyalife offers an all-in-one solution with global reward options for large customer bases.
For customer service excellence: Zendesk is the proven choice to manage support across channels at scale.
For brick-and-mortar businesses: Square Loyalty adds easy rewards to your POS, turning casual visitors into regulars with minimal effort.
For payment processing innovation: Clavaa's fee-free rewards system increases retention without the usual card fees.
For relationship-based retention: Zoho CRM provides the toolkit to keep customers engaged through personalized interactions.

By leveraging one (or a combination) of these platforms, businesses can increase customer lifetime value and build a loyal customer base in 2025's competitive landscape. The right retention software doesn't just prevent churn – it creates delighted customers who keep coming back, which is the ultimate win-win for any company.

Ready to Boost Customer Retention?

Compare the top retention software solutions to find your perfect match for increasing customer lifetime value.

Review Comparison Table

Need Help Deciding?

Speak with a retention software specialist to find the best solution for your specific business needs.

Get Expert Advice

Best Customer Retention Software Solutions in 2025 (Top 4 Picks & Reviews)

We compare the leading customer retention platforms that help businesses foster loyalty and increase repeat sales in today's competitive market.

Customer Retention Management Software: The 2025 Landscape

Choosing the Right Customer Retention System

How to Use This Guide

Top 5 Customer Retention Software Solutions

What Makes Effective Retention Management Systems in 2025

Top Business Benefits of Customer Retention Software

Higher Customer Retention

Increased Revenue

Actionable Analytics

Quick ROI

Essential Features By Retention Software Type

Loyalty Management Platforms

Customer Support Solutions

POS Integrated Loyalty

Payment-Integrated Retention

CRM-Based Retention

Mobile and Digital Access Requirements

Key Takeaway

Why Invest in Customer Retention Tools

25-95% Profit Increase

43% Revenue Growth

2.8× Higher Retention Rates

3-Month ROI Timeline

Real Business Results from Retention Software

Key Investment Considerations

Top 4 Customer Retention Software for 2025 (Reviewed & Compared)

How We Evaluated Each Loyalty Software

User Satisfaction

Feature Completeness

Integration Capabilities

Value for Investment

Clavaa

Innovative Payment-Integrated Retention Platform

Zero-Fee Payments with Rewards

Integrated Payment & Loyalty Wallet

Customer Insights Dashboard

SMB Network & Collaboration

How Clavaa's Retention System Works

Industry Applications

Business Impact

Pricing Model

Key Advantages

Considerations

Key Advantages

Considerations

Ideal For

Square Loyalty

POS-Integrated Loyalty for Small Businesses

Customizable Rewards Program

Flexible Rewards & Offers

Seamless POS Integration

Customer Insights

How Square Loyalty Works

Enrollment

Earning

Rewards

Easy Enrollment & Notifications

Frictionless Customer Experience

Transparent Usage-Based Pricing

Valuable Customer Insights

Perfect For These Small Businesses

Business Impact

Key Advantages

Considerations

Key Advantages

Considerations

Ideal For

Zendesk

Comprehensive Support Platform for Customer Retention

Omnichannel Ticketing

Automation & Workflows

Knowledge Base & Self-Service

Analytics & Reporting

Integrations & Scalability

Seamless Ecosystem Connections

Pricing Options

Industry Applications

Business Impact