Customer Service Software

4 Best Free Customer Loyalty Software for Small Businesses

By | 7 min read | Published

Struggling to build a loyal customer base? With customer loyalty software, you can set up and run loyalty programs to reward faithful customers and win repeat business.

We empower businesses to accelerate their growth by helping them find the right software. We select and rank products based on an objective methodology developed by our research team. While some vendors may pay us when they receive web traffic, this does not influence our methodology.
The analysis in this article was conducted based on reviews and ratings data as of August 2021. To present the most up-to-date information, the current ratings are shown within the product cards below. Please note that this means the current values may not be reflected in the previously published analysis.

As a small business owner, you must not be new to the struggles of building a loyal customer base and increasing customer retention. You may have a few loyalty campaigns, but managing them on your own can be a challenge.

Fortunately, customer loyalty software can help. These tools let you build a loyalty program to reward your most lucrative customers. They allow your small business to attract new customers as well as retain the existing ones.

However, these tools aren’t cheap, but if you don’t have the budget to buy one, don’t worry! You can opt for free software. We’ve identified the four best free customer loyalty software to help your small business create regular customer engagement opportunities.

This article looks at the four best free customer loyalty software options, listed alphabetically.

See the full list of free customer loyalty tools in Capterra’s software directory.
Visit directory

Guusto: Best functionality

Guusto is a customer rewards and incentives solution that helps drive engagement, increase acquisitions, and boost loyalty and advocacy among your customers. 

The tool allows you to create a loyalty program for repeat customers. It lets you allocate a budget to the sales team to offer rewards, discount coupons, bonus gifts, and other incentives to your loyal customers.

You can run a referral program to reward customers for referring your small business to their family and friends. You can also set up an advocacy program to incentivize customers for leaving positive reviews and testimonials. You can even create customized reports to assess the performance of your rewards program. 

Guusto offers email, phone, and chat support. It also has a mobile app for iOS and Android devices.

Best Functionality
View Profile

Key Features:

  • eCards
  • Goal Management
  • Nominations
  • Recognition Tracking
  • Rewards Catalog
  • Social Recognition
Trial/Free Version:
Free Trial
Free Version
Device Compatibility:


Team Reports
Gift reports in Guusto

Giftbit: Helps create custom reports

Giftbit is a loyalty management solution that lets you buy, send, and track digital gift card rewards. It offers a points-based rewards system that allows customers to earn points for every purchase and use the accumulated points to claim discounts, cash back, and more.

The software lets you create personalized gift cards and launch them via email campaigns. It features a centralized dashboard to track the email campaigns and assess their impact on customer engagement.

With Giftbit, you can also create custom reports to assess the performance of your gift card campaigns. These reports allow you to track the total gift card value you’ve sent, which customers have claimed the gift cards, and the amount you’ve saved on unclaimed cards.

The tool offers chat support. It also has a mobile app for iOS and Android devices.

Visit Website

Key Features:

  • Activity Tracking
  • CRM
  • Gift Card Management
  • Loyalty Cards
  • Member Portal
  • Referral Tracking
Trial/Free Version:
Free Trial
Free Version
Device Compatibility:


Giftbit gifts
Sending gift cards on Giftbit

Referrizer: Tracks customer engagement

Referrizer is customer loyalty program software that helps increase revenue through website traffic conversion. It boosts retention by identifying your most loyal customers based on repeat purchases.

The software uses a points-based program to reward customers for every repeat purchase they make. It also rewards customers every time they recommend your business to someone they know. 

You can use Referrizer to run a reviews program that allows only registered customers to post reviews on your website. This helps protect against spammers or fake reviewers. The tool also prompts returning customers to submit reviews to help improve your online reputation.

The tool is web-based and offers phone and email support.

View Profile

Key Features:

  • Contact Database
  • Lead Capture
  • Lead Engagement
  • Lead Segmentation
  • Referral Tracking
  • Rewards Management
Trial/Free Version:
Free Trial
Free Version
Device Compatibility:


Partnership program in Referrizer

Yotpo: Measures the performance of referral campaigns

Yotpo is a customer loyalty solution that helps build custom rewards and referral programs. It offers a tiered program that rewards customers based on purchases, referrals, and more.

With Yotpo, you can offer multiple reward options, including points, products, store credit, and discounts, to customers. You can also offer rewards based on customer behavior, such as the number of website visits, duration of visits, and cart value.

You can use the program analytics feature to measure the impact of your referral programs on customer engagement and retention. You can also integrate the software with social media platforms to encourage customers to make referrals through these channels. 

Yotpo offers phone, email, and live chat support. It’s a web-based tool.

Visit Website

Key Features:

  • Campaign Management
  • Contact Management
  • Customer Segmentation
  • Engagement Tracking
  • Customer Referrals
  • Mass Texting
Trial/Free Version:
Free Trial
Free Version
Device Compatibility:


Campaign creation in Yotpo
Read our customer loyalty software buyers guide to understand the benefits and common features of these tools.

How to choose the right free customer loyalty software for your business

Retaining existing customers and nurturing new ones is a time-consuming task. When choosing a free customer loyalty tool for your sales and marketing teams, understand what they need to make their jobs easier. Here are some considerations to keep in mind:

  • Assess the number of referral programs the free tool lets you create. Free software often limits the number of referral programs you can run. Before finalizing a solution, assess your requirements and choose a tool that lets you create and run as many referral campaigns as you wish. 
  • Choose a tool that offers customization. Every business is unique, and so are its customer loyalty programs. When selecting a free tool, make sure it’s customizable enough to create referral programs per your branding needs, customer requirements, etc.
  • Pick a tool that doesn’t limit social media integrations. Free customer loyalty tools may not have enough social media integrations to start a multichannel referral program. If your audience is widespread, be sure to select a solution that supports multichannel engagement in its free version.

Common questions to ask while selecting free customer loyalty software

These are some common questions you can consider asking vendors to shortlist the right loyalty management software for your small business:

Does the tool integrate with my existing tech stack?

An ideal customer loyalty software solution should easily integrate with your current tech stack, such as CRM or payment processing tools, and seamlessly share customer data.

Does the tool offer reporting and analytics?

Select a tool that lets you measure the performance of your referral programs so you can identify areas of improvement.

What kind of technical support should I expect?

Check the kind of technical support available under the free plan. Often, paid users get priority support for issues such as server downtime. Assess the nature of your business operations, and decide if the available support options suit your needs.

How did we choose these products? We didn’t—you did

To find your ideal software match, you need information you can trust so you can save time, stay on budget, and focus more on growing your business. It’s why we vet and verify all our user reviews and recommend only the tools endorsed by people like you.

In other words, our product recommendations are never bought or sold, or based on the opinion of a single individual—they’re chosen by your peers, reflecting the views and experiences of our independent base of software reviewers.

To be considered for this list, products have to:

  • Have at least 20 unique product reviews published on Capterra within the past two years, with an average rating of 3.0 or higher. We selected the 4 products with the highest ratings to feature in this article.
  • Offer a free, stand-alone version of the software (not a trial version of the software where you must purchase a product after a limited amount of time).
  • Meet our customer loyalty software market definition: “Customer loyalty software helps users customize different aspects of a loyalty program, from creating rules around how customers earn and spend points and how many points they earn per purchase to which customers are VIPs. The software lets you offer reward points for different actions, such as in-store purchases, online purchases, events, social media promotion, etc.”

Note: The content in this piece that provides opinions and points of view expressed by users does not represent the views of Capterra.

The “Best functionality” tool is identified based on the highest user ratings a vendor receives for functionality based on publicly available reviews (as of August 17, 2021).

Looking for Customer Loyalty software? Check out Capterra's list of the best Customer Loyalty software solutions.

About the Author

Ashish Upadhyay

Ashish Upadhyay

Writer @ Capterra, helping digital Davids beat Goliaths. I cover small business trends in CRM, accounting, real estate, insurtech, and emerging tech. B.A English, University of Delhi. Currently pursuing my master’s in English Literature. When I’m not working, I’m planning my next trek, playing video games, or working out.

Related Reading



Comment by Michael Benson on

I have a Woocomerce website ( launching soon) and I’m opening a vintage/thrift store.
I have decided to not do a POS system at this time. I do want a customer Loyalty/Rewards program. Is there a way to have a rewards program ? If not , What is the minimum POS I need to have one? Thanks.

Comment by Ethan on

If you’re looking for a digital punch loyalty card, check out CandyBar!

There are no downloads, set up in minutes, so easy to use! You can get instant feedback and insights from customers, and this software allows you to grow a loyal customer base. Check it out.

Comment by Nidhi Bambalkar on

For better customer feedback you can use BugRem tool.


Comment by Tomasz Karwatka on

Thanks for mentioning OpenLoyalty here 🙂

Pingback by Capterra Ranks Preferred Patron™ #1 – Best Customer Loyalty Software! – Loyalty Program Software | Rewards Program Software | Repeat Business on

[…] NORTHFIELD, NJ – Nov 19, 2015 – “If you don’t have customer loyalty, you don’t have customers – as least, not for long.”, says Cathy Reisenwitz of Capterra. “Preferred Patron™ may sound like one of those newfangled stadium endorsement deals, but the somewhat haughty title has the goods to back it up.” Read full article… […]

Comment by Melissa Meier on

Plastic Fulfillment Inc has worked with many loyalty program providers for years. Being in business for over 10 years we do not see the loyalty card or key tag programs going anywhere anytime soon. To work with Plastic Fulfillment Inc on your next card or key tag order for your loyalty company please check us out on our website

Comment by Guntis Coders on

Walmoo actually is free. The only limitation is monthly unique visitors. So if you have less than 51 unique customers who do use the system (register their purchase/visit) it’s 100% free!
No offer, customer database, transaction or other functional limitations.

See for yourself:


Comment by Stephen Akins on

There’s a Loyalty Program that’s ACTUALLY free:

There is a paid service for businesses that would like card printing/manufacturing but the software itself is 100% free, no demo, no trial, no ads (except your own and they’re free too).

QR Loyalty Cards provides businesses with the means to reward the widest range of profitable customer behaviours and offers Business Branded cards as a base option.

Comment by Brandon Guerrero on

None of these are free and open source. They are all freemium at best of that, and they’re not true open source at all, all trials, highly limited free services and simply paid options only.

Comment on this article:

Comment Guidelines:
All comments are moderated before publication and must meet our guidelines. Comments must be substantive, professional, and avoid self promotion. Moderators use discretion when approving comments.

For example, comments may not:
• Contain personal information like phone numbers or email addresses
• Be self-promotional or link to other websites
• Contain hateful or disparaging language
• Use fake names or spam content
Your privacy is important to us. Check out our Privacy Policy.