82% of Brands Say Loyalty Drives Growth, According to Propello Report

Read the Report

Introduction:
As consumer expectations evolve, brands are rethinking what it means to create loyalty in a digitally-driven world. The 2025 Loyalty Uncovered report, published by Propello in collaboration with Qualtrics, delivers fresh insights from 650+ brand leaders across the UK, US, and Ireland. The findings challenge outdated loyalty tactics and show a clear trend: forward-thinking organizations are turning loyalty into a growth engine, not just a retention tool.

Key Findings from the Report

• 82% of brands now recognize loyalty as a growth driver, not just a retention tactic.

• 55% say personalization has the biggest impact on customer loyalty.

• Only 12% of brands describe their current loyalty strategies as “very effective.”

• Nearly half (46%) cite difficulty in linking loyalty programs to ROI as a major challenge.

• 74% plan to increase investment in loyalty initiatives over the next year.

• 49% of brands agree that first-party data is underused in their loyalty strategies.

• Brands are leaning into community and emotional connection—with nearly 60% looking to build loyalty through shared values and experiences.

• Just 18% say their loyalty program includes gamification, signaling untapped engagement potential.

The CXF Take

This report makes one thing clear: customer loyalty has graduated from a points-and-rewards conversation to a broader, more strategic imperative. Brands that treat loyalty as a siloed marketing function are falling behind. The 82% who now view it as a growth enabler are those embracing a more integrated approach—one that brings together personalization, brand values, and smarter use of customer data.

The biggest surprise isn’t how many brands are investing in loyalty, but how few feel confident in their current strategies. Just 12% call their approach “very effective,” even though nearly three-quarters plan to increase spending in the coming year. This signals a maturity gap—ambition is high, but execution isn’t keeping pace. Bridging this gap requires clear ROI frameworks, better customer segmentation, and operational alignment across marketing, tech, and CX teams.

The most progressive brands are moving beyond transactional loyalty. They’re thinking in terms of emotional equity: building belonging, shared purpose, and trust. These programs are less about discounts and more about delivering value in ways that matter to each customer—whether that’s exclusive access, curated experiences, or co-creation opportunities.

Loyalty success in 2025 and beyond will depend on a brand’s ability to operationalize customer insight. First-party data is sitting underutilized in many systems, yet it holds the key to predictive personalization. Brands must activate this data through AI, journey orchestration, and real-time decisioning to meet customers where they are—not where they were last quarter.

For CX leaders, loyalty can’t be an afterthought. It’s the reflection of every interaction your customer has with your brand. If that reflection doesn’t feel personal, purposeful, and consistent, no amount of incentives will close the gap.