Many Brits are less attached to retailers than three years ago as UK’s biggest loyalty turn offs revealed
UK retailers have a significant opportunity to strengthen customer loyalty, as shoppers grow increasingly disengaged from programmes that feel generic and unrewarding, according to new research from HyperFinity. Its survey of 2,000 Brits found that 79% of shoppers want personalised loyalty offers, with 23% expecting these offers to be highly personalised. Yet despite this expectation, 61% have been a member of a loyalty programme but felt no different from a regular customer.
On top of this, 52% are less loyal to retailers than three years ago - not because loyalty no longer matters, but because too many programmes are failing to deliver genuine value.
The survey also found that irrelevant offers are Britain’s biggest loyalty frustration, cited by 55% as their primary turn-off. Generic programmes that fail to recognise individual preferences are making it harder for retailers to build lasting loyalty. Among shoppers who have chosen to abandon a retailer because of its loyalty programme, limited savings rank as the second biggest reason (36%). A further 13% cite early access to products and deals that never actually materialise.
As cost-of-living pressures intensify, the tolerance for loyalty schemes that take data but give little back is running out among the UK public. For retailers, this presents an opportunity to stand out by using customer data more effectively to deliver rewards that feel genuinely relevant and valuable.
Thomas Hill, Co-founder at HyperFinity, comments: “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.”
Shoppers are open to artificial intelligence playing a role in fixing this. 69% are comfortable with retailers using AI to personalise offers, with 27% specifically wanting more relevant discounts and a further 26% wanting both greater relevance and bigger savings.
Yet even as budgets tighten, the data shows loyalty still has the power to retain customers. When asked how cost pressures affect their shopping behaviour, staying loyal when rewards are worthwhile (44%) was the single most common response - ahead of switching to cheaper retailers (38%) or becoming less loyal overall (6%).
“Just under 70% of shoppers are already open to AI powered personalisation,” Hill adds. “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.”
2026 RTIH Innovation Awards
Loyalty programmes will be a key focus area at the 2026 RTIH Innovation Awards.
The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.
Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.
Check out our 2025 winners here.
Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.
In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”
“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”
He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”
Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.
