Top 7 Free Loyalty Programs for Small Businesses

Small businesses often need help to keep customers coming back, especially with tight budgets and tough competition. But what if you could build strong, lasting relationships without spending a fortune?

In this guide, I’ll introduce you to 7 free loyalty programs that can help small businesses connect with their customers and boost repeat sales. These programs are practical, easy to use, and designed specifically for small businesses.

Quick Comparison

7 Free Loyalty Programs for Small Businesses: A Detailed Breakdown

Let’s explore the seven best apps to help you create free loyalty programs for small businesses:

1. Joy Rewards & Loyalty Program: The Best Overall Option for Small Businesses

Rating: 4.9 ⭐ (1,848 reviews)

Joy Rewards & Loyalty Program is one of the best free loyalty programs for small businesses. With Joy’s free plan, you’re getting a pretty sweet deal. You can set up a basic loyalty program with points for sign-ups and orders, plus a referral system that doesn’t cap out.

What really stands out to me is that you get a custom loyalty page and can handle up to 150 orders a month for free – that’s more generous than most other free plans I’ve seen. Plus, you can start redeeming rewards right away, which is a big win for keeping customers coming back.

If you’re looking to take your loyalty game to the next level, you might want to consider upgrading to a paid plan. From what I’ve seen, this unlocks some pretty cool features like VIP tiers, which can really make your top customers feel special. You’ll also get more advanced analytics to track how well your program’s doing, and you can bump up your order limit. Oh, and if you’re running both online and in-store sales, the paid plans let you sync everything up with POS integration. It’s definitely worth considering if you’re serious about customer retention.

Key Features:

• Unlimited referrals
• Loyalty page
• 150 free orders per month
• Basic point program (sign-up, place order)
• Redeem programs
• Basic integration

Integration Capabilities:

Joy Loyalty perfectly integrates with the tools you already use, like:

• Shopify Flow
• Shopify POS
• Air Reviews
• Judge.me
• Klaviyo
• PushOwl
• Mailchimp
• Omnisend

No fancy tech skills needed. Just set it up and start seeing results.

Best for: The Joy app is ideal for small businesses that prioritize ease of use, flexibility, and affordability, including:

• Cafes & Restaurants: Reward regulars with points and exclusive perks.
• Retail Shops & Boutiques: Keep shoppers returning with personalized rewards.
• Salons & Spas: Encourage repeat visits and referrals with easy-to-use loyalty programs.
• Fitness Studios & Gyms: Build community with rewards for attendance and referrals.
• E-commerce Stores: Turn online shoppers into loyal fans with points and discounts.
• Local Businesses: From florists to bakeries, reward your in-store customers effortlessly.

🔥 Bonus: Joy.so free plan vs. other loyalty programs’ free plans

Joy’s free plan stands out from the free plans of other competitive loyalty program apps in several ways:

• Generous order limit: Joy offers 150 free orders per month, which is more than some competitors like Smile (100 orders) or Growave (100 orders).
• Unlimited referrals: This is a standout feature that many other free plans don’t offer, allowing you to grow your customer base without restrictions.
• Custom loyalty page: Joy provides a dedicated loyalty page even on the free plan, which isn’t always available with other apps.
• Basic point programs: You can reward customers for sign-ups and orders right from the start, giving you a solid foundation for customer engagement.
• Redemption options: The free plan includes redemption programs, allowing customers to use their points – a feature sometimes limited in other free plans.

I’ve gotta say, for a free plan, Joy’s offering is pretty impressive. It gives you a lot of room to test out a loyalty program without committing to a paid plan right away. The unlimited referrals, in particular, are a game-changer for small businesses looking to grow their customer base on a budget.

2. Loopy Loyalty: Digital Stamp Cards for Simplicity

Rating: 4.6⭐(56 reviews on Capterra)

Loopy Loyalty is a fantastic option for small businesses looking to modernize traditional punch cards. It creates digital stamp cards for Apple Wallet and Google Wallet, allowing customers to earn stamps without downloading a separate app. The free plan is perfect for small businesses with limited budgets, supporting up to 50 customers and one stamp card. Its simplicity and mobile wallet integration make it a great choice for companies with in-store traffic.

Compared to Joy Rewards, Loopy Loyalty focuses on stamp-based rewards rather than points, which may suit businesses like cafes or salons better. However, it lacks the unlimited referrals and customizable loyalty page that Joy offers, making it less flexible for online businesses.

Key Features:

• Digital stamp cards for Apple Wallet and Google Wallet
• Up to 50 customers on the free plan
• Single or multi-reward stamp cards (e.g., buy 10, get 1 free)
• Location-based notifications (iPhone only)
• Basic analytics for tracking stamp redemptions
• No app downloads required for customers

Integration Capabilities:

• Apple Wallet and Google Wallet
• Basic email notifications
• No direct POS integrations on the free plan
• Web-based dashboard for management

Best for:

• Cafes & Restaurants: Reward frequent visitors with digital stamps.
• Salons & Spas: Offer free services after a set number of visits.
• Retail Shops: Encourage repeat purchases with simple rewards.
• Local Businesses: Ideal for in-store loyalty without complex setups.

3. Yotpo: Loyalty & Rewards: A Solid Option for Small Businesses

Rating: ⭐ 4.7 (2,583 reviews)

Yotpo Loyalty & Rewards is another free loyalty program option for small businesses. It simplifies customer loyalty and retention by offering a flexible, no-code platform.

With over 20 pre-built campaigns, businesses can effortlessly reward customers, boost engagement, and drive repeat purchases. I found Yotpo Loyalty particularly intuitive, enabling loyalty strategies without technical expertise.

Based on what I’ve seen, Yotpo doesn’t offer the same level of customization and flexibility as Joy, especially when integrating with other platforms and creating unique reward structures. Joy’s interface is also more user-friendly, making it easier for businesses to manage their loyalty programs and engage with their customers.

Key Features:

• Rewards sticky bar
• Earn points for purchases
• Points for creating an account
• Referral program

Integration Capabilities:

• Klaviyo
• Mailchimp
• HubSpot
• Zapier
• Shopify Flow

Best for: Cafes & Restaurants, Retail Shops & Boutiques, Salons & Spas, Fitness Studios & Gyms, E-commerce Stores, Florists & Bakeries, Hybrid Businesses.

4. Smile: Loyalty & Rewards – Simple and Effective for Small Businesses

Rating: ⭐ 4.8 (6,593 reviews)

Smile: Loyalty & Rewards is a simple yet powerful loyalty platform, perfect for small businesses. Designed to help businesses save on acquisition costs, increase sales, and foster brand loyalty, Smile.io allows you to set up impactful loyalty strategies in just minutes. From my experience, its ease of use and customer support are standout features for beginners and seasoned users alike.

Key Features:

• Points program
• Referral program
• Basic branding
• Analytics overview
• Data exports
• Up to 200 monthly orders

Integration Capabilities:

• Shopify Flow
• Shopify POS
• Judge.me
• Stamped
• Gorgias
• Mailchimp

Best for: Small Retailers, Social Media-Focused Brands, E-Commerce Stores, Subscription-Based Businesses

5. BON: Loyalty Rewards – A Budget-Friendly Option for Small Businesses

Rating: ⭐ 4.9 (1,773 reviews)

BON: Loyalty Rewards Referrals, powered by BON Loyalty, is a versatile loyalty program designed to strengthen customer relationships with seamless rewards and personalized experiences. Whether you’re focusing on VIP perks, free shipping, or referral incentives, BON makes it easy to connect with customers through customizable loyalty pages, widgets, and real-time analytics. This tool has been a go-to option for integrating loyalty strategies across online and in-store experiences.

While BON seems like a decent loyalty app, I think it lacks some of the key features that make Joy.so (the 1st app I introduced) stand out, like the ability to customize rewards based on customer tiers and integrate with POS systems for seamless online and offline experiences. Personally, I find Joy.so interface more user-friendly and its reporting features more comprehensive, which are crucial for effectively managing and tracking customer loyalty.

Key Features:

• Points program
• Anti-cheat referral program
• Customizable widget
• Automated emails
• Exclude specific products
• Points at checkout (Shopify Plus)

Integration Capabilities:

• Shopify POS
• Judge.me
• PageFly
• LAI Product Reviews
• GemPages

Best for: eCommerce businesses, Omnichannel retailers, Shopify users, Multi-currency brands, Holiday campaigns & VIP reward strategies.

6. Tremendous: Gift Card-Based Rewards

Rating: 4.8⭐ (260 reviews on Capterra)

Tremendous is a highly popular platform for sending digital gift cards as loyalty rewards, with a free plan for small-scale use. It’s simple to set up and loved for its flexibility. It focuses on gift cards rather than points, but it misses Joy’s customizable loyalty page and referral features.

Key Features:

• Free digital gift card rewards
• Supports 50 rewards/month on free plan
• Customizable reward campaigns
• Basic tracking and reporting
• No customer app required

Integration Capabilities:

• Zapier
• Salesforce
• HubSpot
• Square
• Web-based API

Best for:

• Cafes: Offer gift cards for frequent visits.
• Retail: Reward purchases with branded cards.
• Service Businesses: Incentivize repeat clients.
• E-commerce: Boost online engagement.

7. Tango: Seamless Digital Gift Card Rewards

Rating: 4.8⭐ (503 reviews on Capterra)

Tango is a leading platform for digital gift card rewards, with a free version ideal for small businesses. Its user-friendly interface and extensive reward catalog make it a top choice for customer and employee incentives. I find its instant delivery and no-fee model perfect for budget-conscious businesses. Compared to Joy Rewards, Tango excels in gift card variety but lacks points-based rewards and unlimited referrals.

Key Features:

• Instant digital gift card delivery
• Up to 50 rewards/month on free plan
• Extensive reward catalog with global brands
• Basic reward tracking and history
• No platform fees

Integration Capabilities:

• Zapier
• Salesforce
• Square
• HubSpot
• API for custom integrations

Best for:

• Retail Shops: Reward purchases with gift cards.
• Restaurants: Incentivize frequent diners.
• Service Businesses: Boost client loyalty.
• Local Businesses: Engage customers with flexible rewards.

Main Types of Free Loyalty Programs for Small Businesses

I’ve noticed that a lot of small businesses struggle with finding the right loyalty program, especially when they’re on a tight budget. Thankfully, there are plenty of free options available that can work really well, and I think it’s helpful to understand the different types. Let’s take a look at 3 of the most popular choices for small businesses looking to build customer loyalty without spending a fortune.

Points-Based Loyalty Programs

Points-based loyalty programs are simple and effective. Customers earn points when they make purchases, leave reviews, or engage with your brand. These points can then be redeemed for rewards like discounts, free products, or other perks.

Example: Boots, the pharmacy and beauty retailer, showcases the power of points-based loyalty with its Advantage Card. Customers earn points for every pound spent and redeem them for discounts or exclusive offers, driving repeat purchases and brand loyalty.

Benefits

• Encourages repeat purchases
• Easy to set up (no technical skills needed)
• Helps you gather insights into customer habits
• Cost-effective and scalable

Referral Loyalty Programs

According to Nielsen, 88% of consumers trust recommendations from friends or family over other forms of advertising. Referral loyalty programs reward your existing customers for bringing in new ones. These programs rely on word-of-mouth, one of the most powerful (and cost-effective) marketing strategies.

Example

If you have a small handmade jewelry brand, you can create a campaign where customers earn a $5 discount by sharing a photo of their recent purchase on Instagram and tagging the brand with a specific hashtag.

Benefits

• Low-cost customer acquisition
• Expands brand reach quickly
• Builds trust through word-of-mouth recommendations
• Keeps current customers engaged

VIP Loyalty Programs

VIP loyalty programs are all about rewarding your most loyal and high-value customers. These programs often use tier systems or milestones to create a sense of exclusivity. The more a customer engages, the better their rewards.

Example

Diamond Art Club sparkles with its Diamond Insider Rewards program, offering a branded explainer page and perks like 500 welcome points and 10% cash back on every purchase. The program’s tiered structure—Emerald, Sapphire, Ruby, and Diamond—encourages repeat purchases by unlocking increasingly valuable rewards such as free products, exclusive gifts, and early sale access.

At the Diamond level, members enjoy premium benefits, including bonus points and a VIP Facebook group, showcasing how a well-designed loyalty program can deeply engage customers.

Benefits

• Creates customer exclusivity
• Increases Average Order Value (AOV)
• Strengthens long-term customer relationships
• Turns loyal customers into brand advocates

Case Studies Of Successful Loyalty Programs In Small Businesses

I think it’s really inspiring to see how small businesses use loyalty programs to grow and thrive. I’ve come across some amazing success stories, and I believe there’s a lot we can learn from them. So, let’s take a look at a few case studies of small businesses that have implemented effective loyalty programs.

Local Brew

Local Brew, a small coffee shop, implemented a tiered loyalty program using a simple point-based system to boost customer retention and engagement. By leveraging a user-friendly mobile app, Local Brew successfully integrated its in-store and online ordering systems into a seamless rewards ecosystem.

Successful stories

• Point System:

Customers earn 1 point for every dollar spent, with 100 points equaling a $5 reward.

• Tiered Benefits:

Bronze (0-500 points), Silver (501-1000 points), and Gold (1000+ points) tiers offer increasing perks like free drinks, priority ordering, and exclusive tastings.

• Mobile App Integration:

The app allows customers to track points, redeem rewards, and place orders for pickup.

• QR Code Scanning:

Customers can scan QR codes on receipts to easily add points to their accounts.

• Personalized Offers:

The program sends tailored promotions based on customer preferences and purchase history.

Key Results

• 30% increase in repeat customers within the first 3 months.
• 25% boost in average transaction value.
• 40% of customers actively engaged with the mobile app.

Ismail Cem Erzincanlı

A health products retailer in Turkey, led by entrepreneur İsmail Cem Erzincanlı, utilized the free BON Loyalty app to enhance customer retention and boost sales. The retailer, which offers a wide range of health products, faced challenges in keeping customers engaged and reducing high customer churn rates.

By implementing BON Loyalty, they were able to introduce a user-friendly loyalty program that seamlessly integrated with their operation.

Successful stories

• Increased Customer Engagement:

İsmail leveraged the BON Loyalty platform to create a simple, effective loyalty program, which increased customer engagement through easy reward redemption options.

• Enhanced Customer Retention:

The program successfully helped retain customers, leading to more repeat purchases and higher overall satisfaction.

• Effective Use of Coupons:

With BON Loyalty’s coupon feature, customers were able to easily redeem rewards, leading to a 6% revenue increase.

• Balanced Acquisition and Retention:

The business maintained a balance between acquiring new customers and retaining loyal ones, resulting in a sustainable growth strategy.

• User-Friendly Interface:

The simplicity of BON Loyalty allowed for easy management of rewards and a smooth customer experience, further boosting business operations.

Key Results

• By Q4 2023, more than 500 rewards were redeemed through the loyalty program, generating $13,000 in revenue.
• The program significantly contributed to a 6% revenue ratio.

Death Wish Coffee

Death Wish Coffee leveraged Smile.io to revamp its loyalty program, initially called Reaper Rewards, into Ritual Rewards in 2017 to enhance customer engagement. The rebrand focused on gamification and personalized email flows through Smile.io and Klaviyo, significantly boosting rewards redemption and customer lifetime value.

Successful stories

• Smile.io Application:

Death Wish Coffee integrated Smile.io to optimize its loyalty program, transitioning from Reaper Rewards to Ritual Rewards.

• Gamification and Personalization:

By incorporating gamification campaigns like Swig League and using Klaviyo for personalized email flows, they enhanced customer engagement.

• Increased Engagement:

The Smile.io loyalty app integration allowed Death Wish Coffee to track referrals and loyalty points efficiently, boosting rewards redemption rates and increasing customer lifetime value.

Key Results

• 186 % Increase in Smile-Generated Value Year-Over-Year.
• 4.8x Higher AOV for Repeat Customers vs. One-Time Shoppers.
• 2.63x Higher Purchase Frequency for Loyalty Program Members.

How to Choose the Best Free Loyalty Programs for Small Businesses?

I know choosing a loyalty program can feel a bit overwhelming, especially with so many options out there. I’ve seen firsthand how the right program can make a big difference for small businesses, so I’m happy to share some tips to help you find the perfect fit. Let’s break down the key factors to consider when making your decision.

• Evaluate Your Business Needs:

Before you even start looking at programs, I think it’s super important to figure out exactly what you want to achieve with a loyalty program. Do you want to encourage repeat purchases, boost customer engagement, or maybe gather valuable customer data?

• Check for Free Features:

Don’t get caught out by hidden fees! Make sure the program you choose actually offers all the essential features you need for free, like a points system, basic analytics, and email notifications.

• Integration Options:

From what I’ve seen, smooth integration with your existing tools is a must. Look for a program that easily connects with your Shopify store, POS system, email marketing platform, or social media channels.

• Ease of Use:

Nobody wants to wrestle with complicated software. I always recommend choosing a platform that’s user-friendly and doesn’t require any coding or technical skills to set up and manage.

• Customization Capability:

I think it’s important to maintain your brand identity, even within a loyalty program. Look for a program that allows you to customize the look and feel with your own branding, like adding your logo or using your brand colors.

• Scalability:

Even if you’re small now, you might grow quickly! Make sure the free version of the program can handle a growing customer base and offers features that will still be useful as your business expands.

• Analytics and Reporting:

Data is king! I find it super helpful to track how your loyalty program is performing. Choose a platform that provides free insights into customer behavior and shows you the return on your investment.

• Success Stories:

I always check out reviews and case studies to see how other small businesses have fared with a particular program. It’s a great way to get a feel for whether it will be a good fit for you.

• Customer Support:

Problems happen, so make sure there’s help available. Look for a program that offers free access to tutorials, live chat support, or a comprehensive knowledge base to help you troubleshoot any issues.

Conclusion

This article has highlighted the 7 best free loyalty programs for small businesses available, with a focus on features and ease of use to help small businesses like yours foster customer retention without breaking the bank. I really believe that taking the time to research and compare different options can help you find the perfect program to reward your loyal customers and drive repeat business.

FAQs

What are free loyalty programs for small businesses?

Free loyalty programs are tools designed to help small businesses reward customer engagement through points, rewards, or other incentives, without requiring costly investments.

What benefits can small businesses expect from using free loyalty programs?

Benefits include increased customer retention, higher engagement, reduced acquisition costs, and improved brand loyalty.

Are free loyalty programs suitable for all types of businesses?

Yes, many free loyalty programs are adaptable to various industries, including retail, food services, and online stores, offering customization to meet specific business needs.

Can Loyalty Programs Increase Customer Retention For Small Businesses?

Absolutely! Loyalty programs are effective tools for improving customer retention. They help small businesses build lasting relationships by encouraging repeat purchases and providing valuable insights into customer preferences, which can drive business growth.