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HyperFinity has published research suggesting many UK retail loyalty programmes are failing to meet demand for personalised rewards. The survey found that 79% of shoppers want personalised loyalty offers.
Based on responses from 2,000 UK consumers, the research highlights a gap between what shoppers expect from loyalty schemes and what they believe they receive. It found that 61% of respondents had joined a loyalty programme but felt no different from regular customers.
That dissatisfaction appears to reflect a broader weakening in shopper-retailer ties. More than half of those surveyed, 52%, said they are less loyal to retailers than they were three years ago.
Consumer frustration
Irrelevant offers were the biggest loyalty frustration, with 55% of shoppers citing them as their main turn-off. Limited savings were the second biggest reason for abandoning a retailer, at 36%.
A further 13% said they were put off by promises of early access to products and deals that did not materialise. The findings suggest shoppers respond not only to the size of the reward, but also to whether retailers deliver what their loyalty programmes promise.
Cost pressures are also shaping expectations. When asked how tighter household budgets were affecting shopping behaviour, 44% said they stayed loyal when rewards were worthwhile, compared with 38% who switched to cheaper retailers and 6% who had become less loyal overall.
Those figures indicate that loyalty schemes still matter when shoppers see clear value in return. At the same time, programmes that collect customer data without offering noticeable benefits risk undermining trust and weakening repeat business.
For retailers, the findings add to pressure to show that loyalty membership delivers a clear benefit. Shoppers who see little difference between signing up and shopping as usual may be less likely to engage with offers, share more data or stay committed to a single chain.
AI acceptance
The study also found broad consumer acceptance of artificial intelligence in loyalty marketing. Some 69% of respondents said they were comfortable with retailers using AI to personalise offers.
Among those surveyed, 27% said they wanted more relevant discounts, while a further 26% wanted both greater relevance and bigger savings. The figures suggest shoppers care more about practical results than the technology itself, as long as it leads to a better offer.
Thomas Hill, Co-founder of HyperFinity, said shoppers were not rejecting loyalty as a concept but were becoming frustrated with generic schemes.
"Shoppers are not falling out of love with loyalty - they are falling out of love with programmes that treat them like everyone else. In a market where consumers are more selective than ever, a well-executed loyalty programme is one of the most powerful competitive weapons a retailer has. The retailers that invest in genuine personalisation will not just retain their own customers - they will win the ones that others are losing," he said.
The findings come as retailers continue to rely on loyalty schemes to gather customer data, drive repeat visits and encourage higher spending. Many of the UK's largest chains now link discounts, points systems or member pricing to app use and account-based shopping.
Yet the survey suggests membership alone may no longer be enough to secure customer commitment. If offers feel generic or savings are too small, shoppers appear increasingly willing to look elsewhere.
HyperFinity argues the issue is now less about persuading consumers to accept AI and more about using data in ways that produce visible benefits. It says retailers have an opportunity to make loyalty schemes more relevant at a time when households remain focused on value.
Hill said consumer attitudes towards AI were already clear. "Just under 70% of shoppers are already open to AI-powered personalisation," Thomas added.
"The tools already exist and consumers are ready for them. The next challenge isn't collecting more customer data, it's turning that data into decisions that create more relevant, rewarding loyalty experiences," he said.