USA
73% of Small Businesses Still Operate Without Loyalty Programs, SumUp Survey Finds: New research from global financial technology company SumUp uncovers a striking disconnect between the value of customer loyalty programs and their adoption among U.S. micro and small businesses. These businesses are typical independent local merchants, from cafés and salons to small retail and service-based shops, which comprise the bulk of SumUp’s U.S. customer base. Despite widespread evidence that even basic loyalty tools can measurably increase sales, 73.2% of small business owners currently operate without a formal loyalty program, leaving a major revenue channel underutilized.
“Small businesses are fighting hard for every customer, but many still believe loyalty tools are only for national brands,” said Andrew Helms, CEO of SumUp USA. “Our data confirms the opposite. The smallest businesses, not the biggest brands, have the most to gain from loyalty. Customer retention isn’t a ‘nice to have’ anymore, it’s the growth engine too many entrepreneurs are leaving untouched.”
Loyalty Programs Pay Off
Among businesses that do invest in customer retention, 69.1% report a major or moderate increase in sales-a strong validation of the financial upside of loyalty in an era of rising acquisition costs and shifting consumer habits.
The most common tactic across businesses is direct outreach via email and text, suggesting that even simple digital engagement strategies can improve repeat purchasing behavior. Yet, even among adopters, the opportunity remains underdeveloped: 46.4% of loyalty-investing businesses report only partial confidence in their holiday sales strategy, indicating room for optimization and guidance.
For most small businesses, loyalty programs are the most practical way to drive retention because they give customers a structured reason to return. Helms added, “Retention works. The problem is most businesses don’t treat it like the growth engine it is. You don’t necessarily need a bigger audience to grow. You need to give the customers you already have a reason to come back.”
A Misconception That’s Holding Small Businesses Back
The survey, conducted in November 2025, found that the top barrier to adoption is the belief that a company’s customer base is “too small to justify a program.” This perception spans every sector surveyed, underscoring a systemic misunderstanding of how modern loyalty tools work.
However, the secondary barriers paint a more nuanced picture:
- 26.8% of service providers say loyalty programs feel irrelevant to their business model.
- 26.9% of quick-service restaurants (QSRs) cite a lack of knowledge on how to implement loyalty programs, reflecting an education gap rather than a lack of demand.
A Growing Divide in the Small Business Economy
The findings highlight a defining moment for Main Street commerce: acquisition costs are rising, consumer choice is expanding, and repeat customers now drive a disproportionate share of profitability, yet the majority of small businesses are still competing like it’s 2015.
SumUp says the next competitive edge won’t come from cheaper ads or more foot traffic, but from owning the customer relationship-and loyalty programs are the simplest, most measurable way to do it. Loyalty is the new advantage.
Methodology
The insights in this report are based on quantitative research conducted via an online questionnaire. The survey captured responses from 617 micro and small business owners operating across a wide range of industries and geographic regions throughout the United States. Fieldwork took place between November 7 and November 16, 2025.
