What Britons want out of loyalty programmes in 2024

Loyalty programmes are a cornerstone strategy for businesses seeking to foster customer retention and brand allegiance. In the UK, where competition is fierce and consumer expectations are high, understanding Britons' attitudes and perceptions towards loyalty programmes is crucial. So, how do Britons engage with loyalty programmes? What prevents them from signing up? And are Britons ready to pay for enhanced, paid loyalty experiences?

A new YouGov poll of 1,000 adults in Great Britain explores British attitudes towards loyalty programmes and offers key insights into how businesses can optimize their loyalty strategies to better meet customer needs. Some key findings from the research are:

• Supermarkets lead the way in terms of the types of loyalty programmes people prescribe to- 82% of Britons are currently signed up for one.
• Tesco (72%) and Nectar (54%) loyalty programmes have the greatest levels of spontaneous recall amongst Britons.
• Special pricing and monetary rewards are most likely to impact brand consideration, especially amongst the younger demographics.
• Subscription fees and irrelevant rewards are the top barriers that dissuade Brits from signing up to or continue using a loyalty programme.
• Paid loyalty schemes have low penetration amongst the Brits. More than two-fifths feel that such schemes are a waste of their money

1. 9 in 10 Britons are currently signed up for at least one loyalty programme

A significant majority of Brits are currently enrolled in at least one loyalty programme, with supermarkets (82%) leading the way in terms of the types of loyalty programmes people subscribe to. More than a third of consumers say they are currently signed up for a loyalty programme offered by a food service (34%) followed by beauty retailers (30%). Compared to two out of five consumers who indicate they have at one point signed up for loyalty programmes by hotels and airlines (23% and 22% respectively), only 15% say they are currently a member of such programmes.

2. Tesco and Nectar loyalty programmes dominate in terms of awareness amongst Britons

Supermarket loyalty programmes, particularly Tesco (72%) and Nectar (54%) have the greatest levels of spontaneous recall amongst Britons. More than a fourth of consumers say they’re aware of loyalty programmes offered by Morrisons (26%) and Asda (24%). Beauty retailers like Boots (41% vs. 21%) and Superdrug (13% vs. 4%), see higher recall among women than men.

3. Discounts and special pricing are the most appealing benefits of loyalty programmes amongst Britons

Customising reward types wherever possible could be the key to boosting uptake and retention for loyalty programmes. A look at the benefits of loyalty schemes Britons find most appealing, discounts (85%) top the list followed by monetary rewards like vouchers (82%) and freebies, both, after point collation and immediate purchases (67%). Found appealing by less than a third of consumers, prize draws find takers mainly amongst Londoners and Britons aged 18-24.

4. Ease of reward redemption is a top priority amongst Britons when it comes to loyalty programmes

When asked about the features of loyalty programmes they place the most importance on, more than four out five respondents prioritise ease of reward redemption (87%). This is followed by monetary rewards like vouchers or coupons (82%) and the ability to earn points quickly (80%).

Though no significant differences can be observed between men and women, a look at the data by age demographics reveals some nuances. While monetary rewards and data privacy are more important to older Britons, having an app is a greater priority for Brits between the ages of 18 and 34.

5. 8 in 10 Britons say special pricing and monetary rewards are most likely to drive brand consideration

Special pricing (83%) and monetary rewards (82%) are most likely to impact brand consideration, especially amongst younger demographics. Though priority access and exclusive member events appear to have lower overall impact compared to other rewards, they hold more sway over Londoners (20% and 50% respectively).

6. Sign-up fees and irrelevant rewards are the top barriers prevent Brits from signing up

Two out of three respondents indicate that sign-up or subscription fees (66%) and irrelevant rewards (65%) dissuade them from signing up to or continuing to use a loyalty programme. Rewards that are hard to obtain (64%) and are perceived to be of poor value (59%) are other barriers that towards enrolling in loyalty schemes. In general, Brits aged 18-34 are more open to signing up for loyalty schemes. On the other hand, privacy issues and lack of relevant rewards are more prevalent as barriers among consumers aged 55 and above.

7. More than two out of five Britons perceive paid loyalty programmes as being poor value for money

Paid loyalty schemes have low penetration and limited future consideration. Nearly two-thirds (65%) of respondents say they are not currently enrolled in a paid loyalty scheme and would not consider one either. This is especially significant for women and older Britons, suggesting a need for more compelling value propositions.

41% of consumers feel that paid loyalty schemes are a waste of their money followed by 28% who believe they do not get their money’s worth from such schemes. Less than a tenth of Brits say they feel more loyal to a brand when they have paid for a loyalty scheme compared to a free one (6%).

Results from the YouGov study also reveals that email is the topmost preferred communication channel for loyalty programmes.  While postal mail is more preferred by Brits aged above the age of 55, younger demographics favour digital channels like app notifications and social media.

Evidently, enhancing value propositions and tailoring rewards and multi-channel communication strategies to specific audiences could enhance reach and impact of loyalty programmes offered by brands across sectors.

Explore our living data – for free

Make smarter business decisions with better intelligence. Understand exactly what your audience is thinking by leveraging our panel of 26 million+ members. Speak with us today. 

Discover more retail content here

Want to run your own research? Run a survey now

Try a subscription-free data snapshot of your brand performance, sector trends or audience profile, with a one-time deep dive into YouGov's flagship consumer intelligence and brand tracking products. Get your tailor-made snapshot here. 

Methodology: This survey has been conducted using an online interview administered to members of the YouGov Plc UK. 1,019 adults in the UK were interviewed online between 15th - 22nd May 2024. The figures have been weighted and are representative of all GB adults (aged 18+).