Loyalty schemes become key retail draw, study finds

Sherwen Studios has published research suggesting loyalty programmes are becoming a central part of how retailers connect with shoppers. The study points to growing consumer demand for loyalty tools in both in-store and online shopping.

Its survey of 2,000 UK consumers suggests loyalty schemes are moving beyond their traditional role as a retention tool. Shoppers increasingly see them as a practical exchange, sharing personal data in return for rewards, discounts and a more relevant retail experience.

Among the findings, 31% of shoppers said the digital feature they most want when shopping in-store is the ability to collect loyalty rewards or offers through a retailer app. Another 32% said they would be more likely to visit or buy in-store if they had access to exclusive in-store offers, while 29% said better loyalty rewards would make them more likely to shop in-store.

Those figures suggest retailers still have scope to use loyalty schemes to influence footfall and store spending as many chains continue to balance investment between physical estates and eCommerce operations.

The report also found that 35% of consumers would welcome personalised loyalty rewards, even though attitudes to personalisation elsewhere in the customer journey remain more cautious. More than a quarter of respondents, 26%, said instant loyalty updates across channels should be a standard retail feature, while 20% wanted the ability to add loyalty cards to a digital wallet.

Data exchange

The research presents loyalty as one of the few retail functions where consumers appear willing to provide personal information because the return is clear. That matters for retailers seeking better first-party data as privacy concerns, regulation and changes in digital advertising continue to affect how customer information is gathered and used.

Rather than treating loyalty as a separate add-on after purchase, the findings indicate that consumers increasingly expect it to be built into the wider shopping journey. The emphasis is less on points collection alone and more on visible, immediate value.

Matt Sherwen, Managing Director at Sherwen Studios, said: "Loyalty has traditionally been discussed in terms of customer retention, but our research has identified a much bigger commercial opportunity for retailers. That's because customers actively look for and want to engage with it. They want offers that give them a reason to visit stores, personalised rewards that matter to them, and loyalty benefits that work across physical and digital channels. Loyalty shouldn't feel like an add-on at the end of a transaction. Customers increasingly expect it to be built into the shopping experience itself."

Different groups

The survey also pointed to differences in how demographic groups view loyalty offers. Women showed a stronger preference for personalised rewards than men, with 38% saying they value them compared with 32% of men. Better in-store rewards also scored more highly among women, at 32%, compared with 26% of men.

Age was another dividing line. Younger shoppers tend to show greater interest in loyalty schemes that are digital, mobile-based and closely integrated with personalised experiences. Older consumers, by contrast, are more likely to prioritise simplicity, convenience and clearly understood benefits.

That split may complicate how retailers design schemes for broad customer bases. A single programme may still reach multiple audiences, but the way offers are presented, redeemed and communicated may need to vary across channels and customer groups.

Sherwen said: "A single loyalty programme can serve different audiences, but the offer and experience shouldn't necessarily look the same for everyone. That is why loyalty has become much more than a retention mechanism. When retailers get it right, it can encourage repeat purchasing, connect multiple shopping channels, support personalisation and give customers a clear and immediate reason to share information about themselves."

Retail context

The findings come as retailers continue to examine how to create more consistent shopping journeys across stores, apps and websites. While omnichannel retail has long been an industry objective, the report argues that many customers still experience physical and digital shopping as separate systems rather than a single connected service.

For retailers, loyalty appears to be one of the most tangible ways to bridge that gap because shoppers can see a direct benefit. A discount, tailored offer or instantly updated reward balance is easier to understand than many back-end investments in customer data or digital infrastructure.

Sherwen Studios works with brands including Peacocks, ScS, Booker, Londis, Premier and Budgens. Its broader report covers connected retail, delivery, loyalty, personalisation and artificial intelligence, with the consumer research conducted by Censuswide among a nationally representative sample of UK adults.