Even as consumers become less loyal to the brands they regularly shop with, UK retailers could be missing out on major loyalty opportunities due to poor personalisation within their membership programmes.

New research from HyperFinity, which polled 2,000 UK shoppers, revealed that 79% of shoppers want personalised offers, with a quarter (23%) expecting perks to be highly personalised. Yet, despite this expectation, 61% say they have been a member of a loyalty programme which felt no different than being a regular customer.

On top of this, over half (52%) say they are less loyal to retailers than three years ago – not because loyalty no longer matters, but because too many programmes either feel generic or are failing to deliver genuine value. 

Poorly targeted perks remain top loyalty peeve

The survey also found that irrelevant offers are UK consumers’ biggest loyalty frustration, cited by more than half of shoppers (55%) as their primary turn-off.

The report warns that generic, poorly differentiated programmes, which fail to recognise individual preferences, risk making it harder for retailers to build long-term lasting loyalty and brand affinity. 

Among shoppers who have chosen to stop shopping with a brand 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 – a sign that overpromising and underdelivering is actively costing retailers repeat custom.

As cost-of-living pressures continue to 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.

“Shoppers are not falling out of love with loyalty – they are falling out of love with programmes that treat them like everyone else,” Thomas Hill, Co-Founder of HyperFinity, commented.

“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.”

AI gets the green light

Shoppers are also open to AI playing a role in fixing loyalty programmes personalisation challenges.

69% say they 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.

This, Hyperfinity suggests, demonstrates that AI is welcomed by shoppers when it adds value, and makes loyalty feel more personal, not more automated.

“Just under 70% of shoppers are already open to AI 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.”