What Is the Most Used Loyalty Software? 5 Insights from B2C

Loyalty isn’t what it used to be. Sure, your dog has it—and your regulars probably do too. But even loyal guests lose patience when your app freezes while they’re trying to scan a receipt.  

That’s why over 70% of restaurant and c-store brands are planning to double down on customer loyalty in 2025. Smart move. But with an absolute buffet of loyalty platforms all promising the moon, the real question is, what is the most used loyalty software, and why? 

In this article, we’re breaking down the loyalty tools that have been most widely adopted, what makes them click with guests, and how to choose one that fits your business like a glove.  

From comprehensive restaurant CRM software integrations to full-service guest experience software, let’s figure out what’s actually working. 

What Is Loyalty Software? Why is it So Critical in 2025? 

In 2025, loyalty is much smarter than a paper punch card stuck to your fridge. If you want repeat visits and for your marketing to get noticed, loyalty software is now essential.  

Let’s break down what it is, what it does, and why all the best operators treat it like the heartbeat of their guest strategy. 

Core Definition 

Loyalty software is the digital equivalent of a warm “Welcome back, we missed you!”, only with fewer awkward pauses and more reward points. It’s built to track and reward repeat customer behavior. That could be in the form of daily coffee habits, a weekly fuel-up, or the act of referring friends who also love free stuff. 

It’s far more than yesterday’s punch card. Loyalty software is a secret weapon for boosting retention, delivering a hyper-personalized experience and stretching customer lifetime value (CLV) to its full potential. The best tools are busy working behind the scenes. They’re pulling insights from past visits, purchases, and preferences. They’re doing this while syncing up everything from email campaigns and your restaurant’s Point of Sale software, so no guest is ever treated like a stranger.  

Must-Have Functions 

Not all loyalty platforms are created equally. However, the winners do tend to have a few standout features that keep guests and their operators coming back: 

• A real-time rewards engine so guests don’t wait a few weeks for their free side of fries. 
• A mobile app and POS integration that works seamlessly with all features. 
• Smart behavioral targeting that adjusts to how and when your guests engage with it. 
• Omnichannel tools to reach people wherever they happen to be (push SMS, email, etc). 

A dashboard that displays accurate information in real time.  

What Is the Most Used Loyalty Software by B2C Brands? 

The loyalty software market is overflowing with options, but what are the top brands actually using? From coffee shops to enterprise-level giants, some platforms have managed to carve out a real niche. Others are still trying to find their footing.  

Let’s take a look at the software that’s driving the loyalty world and see what makes it so popular across different industries. 

Top Loyalty Software Solutions in Use (2025) 

 Who Leads by Market Share? 

Different industries lean on different loyalty leaders. Learn about each sector below: 

• Restaurants & C-Stores: Paytronix powers 50,000+ locations across 1,800 brands. This makes it the most used loyalty software in these sectors. 
• Fashion & Beauty E-commerce: LoyaltyLion serves over 7,500 ecommerce stores, leading on Shopify and dominating beauty and apparel loyalty. 
• Cafés & Coffee Shops: Squid Loyalty is used by nearly 2,000 independent venues as a “digital punch-card system” and is expanding fast via a Square partnership. 

Why Certain Loyalty Platforms Dominate Their Categories 

Unlike all-in-one tools like Microsoft Office, loyalty software needs to be purpose-built for specific industries. What works for a national coffee chain may not work for a local gas station. The best platforms dominate their categories because they solve specific problems better than anyone else.  

Restaurants: What Chains and Independents Look For 

When it comes to food service, speed is what matters on both sides of the counter. Restaurants need loyalty software that is mobile-first, easy to learn, and integrates tightly with the online ordering and marketing tools they’re already using.  

Staff also need to be able to get up to speed quickly. This is why intuitive tools that pair well with restaurant staff scheduling and back-office software are a huge plus. Less training, fewer mistakes, and happy guests. 

Convenience Stores: Why Loyalty Must Move Beyond the Pump 

For c-stores, loyalty has to go beyond fuel discounts. Shoppers today expect a whole lot more, like digital coupons and cross-promotion between the pump and snack aisle.  

The best loyalty software makes this effortless. Best of all, it tracks everything too. Platforms that sync with convenience store inventory management help operators know what’s moving, when, and why. This means offers always stay relevant. 

Franchise Groups: Why Centralized Control and Flexibility Win 

Franchise operations are walking a tightrope. They need to stay consistent across the brand, but at the same time, customize campaigns for local audiences. It’s easier said than done when you operate a restaurant in Miami and Minneapolis at the same time.  

That means integration with POS, CRM, and systems like payroll software is important across the board. This is true especially when franchises need transparency without losing autonomy.  

Rising Stars: New or Emerging Loyalty Software to Watch 

AI is becoming more accessible than ever, and tech like web3 and blockchain means loyalty programs are starting to adapt. It’s no surprise new disruptive platforms are emerging and bringing a fresh approach. Here’s a look at some of the most exciting innovations in the loyalty space. 

New Entrants and Disruptors 

Blockchain, web3, and gamification are all making their mark on the industry. The WibX loyalty platform is making waves with its use of NFTs and Web3 to create fully gamified loyalty programs. These allow brands to create VIP groups and reward customers with transparent transactions using blockchain.  

Blackbird takes loyalty even further by integrating blockchain for secure payments with its $FLY rewards token. Hang (by Polygon) brings quests, loot boxes, and challenges, allowing businesses to interactively foster deeper customer engagement while dishing out rewards in the form of tokenized memberships.  

Open-Source or DIY Loyalty Platforms 

For teams looking for a more customizable solution, platforms like OpenLoyalty offer the flexibility to build loyalty programs from the ground up. These tools provide full control and adaptability, making it easier to align programs with brand-specific goals. This is ideal for businesses focused on performance, tracking data, and improving their ROI alongside loyalty.  

Where They Struggle 

DIY and API-based open-source loyalty software is appealing, namely due to flexibility and low costs. However, this type of approach becomes troublesome for a few reasons: 

• Time to value is slower due to build time. 
• Integrations are complex and manual connectors to systems like costing software and table management systems are typically required. 
• Support is limited to the knowledge of your development team and community support. 
• Technical overhead is high and typically requires businesses to hire a software and data developer. 

How to Choose the Right Loyalty Software for Your Business 

The best loyalty software aligns directly with your business goals and customer behavior. Start by taking into consideration your primary objectives and matching them to the features likely to drive results. 

Match Features to Business Objectives 

Questions to Ask Each Vendor 

• What does the onboarding process look like? 
• How do you support omnichannel loyalty delivery? 
• How do you define success for clients? 
• What integration options do you offer for our marketing platforms? 

The “Try It, Prove It” Model 

Before committing, pilot the loyalty platform in select locations. Run A/B tests with and without loyalty engagement to measure its true impact on customer behavior and sales. 

Loyalty Software Benchmarks: What to Expect from Top Platforms 

When evaluating or trying out loyalty software, be aware that you should expect performance in a few key metrics. 

Engagement Metrics 

Successful loyalty programs generally achieve:  

• An enrollment rate of 30–70%.  
• Active user rates of 50% or higher.  
• Redemption rates of between 15–25%.  

These figures demonstrate the platform's ability to engage and retain customers. They also demonstrate that customers are not only signing up but actively participating. 

Financial Metrics 

Loyalty software should drive tangible financial results. Look for a CLTV uplift of 20–40%, reflecting the increased value of loyal customers over time. In terms of ROI, top platforms deliver 4–8x returns, showing a solid investment. Tracking these metrics is essential for measuring the effectiveness of your loyalty efforts.  

Frequently Asked Questions About Loyalty Software Adoption 

Here we’re answering some of the most commonly seen questions about customer loyalty software. Let’s take a look below. 

What is the most common loyalty program? 

The most common loyalty programs are points-based systems. In these programs, customers earn points for purchases that are later redeemed for rewards like discounts or free items. These programs are popular because they are simple and easy to scale. 

What is the most successful paid loyalty program? 

The most successful paid loyalty programs tend to be ones based on a membership or subscription model. These provide consistent revenue and deep customer commitment. They often include perks like exclusive access or discounts. 

What is the biggest driver of customer loyalty? 

The biggest driver of customer loyalty is personalization. Personalization is when a loyalty program gets to know its customers and tailors rewards and experiences based on their preferences. It creates a deep emotional connection and keeps customers coming back for more. 

Choose a Loyalty Platform That Powers Growth, Not Just Points 

The most used loyalty platforms don’t win by granting an excessive number of points to people. They succeed by making life easier for your team and creating a better experience for your guests. If your current system feels more like a chore, it’s probably holding you back. 

Look past vanity metrics. Focus on what actually moves the needle: customer lifetime value (CLV), engagement, and repeat visits. 

Ready to stop guessing and start growing? Paytronix is the number one choice for restaurants and c-stores that take their loyalty seriously. Book your demo now and see the difference for yourself.