While member pricing has been a key focus for retailers to attract shoppers to their loyalty schemes, consumers are demanding more, with 76% thinking schemes should provide members with more perks beyond discounts.
The increasingly crowded loyalty landscape has created challenges in managing multiple memberships, with 27% of members finding it difficult to keep track, rising to 51% among 25-34-year-olds, contributing to a tendency to be more selective about the schemes they choose to maintain. The speed at which customers can earn points/rewards for redemption is another pain point in the loyalty experience, which can discourage members from continuing their participation.
Providing more opportunities to earn points beyond spending, as well as offering rewards that go beyond discounts, would be key to keeping shoppers engaged and attracting new members. Streamlining the process of earning rewards across channels is also crucial, particularly for in-store shoppers who lack the convenience of digital tools and real-time updates.
This report looks at the following areas:
- Key trends within the customer loyalty/reward market, including member pricing and non-price benefits
- Membership and use of leading food and non-food customer loyalty/reward schemes
- Consumers’ satisfaction levels with their most frequently used loyalty/reward schemes
- Attitudes and behaviours towards customer loyalty/reward schemes, including drivers to use schemes and user experience
- Reasons that encourage consumers to keep shopping with a retailer
- Marketing spend on customer loyalty/reward schemes and key innovations within the market
The loyalty landscape is becoming increasingly crowded. It is important that retailers align their benefits closely with customers’ interests and ensure the process of earning rewards is streamlined across channels.
Sam Nguyen, Senior Retail Analyst
Market Definitions
For the purposes of this Report, Mintel has used the following definitions:
This Report looks at how retailers use loyalty and reward schemes to encourage their customers to increase spending and make purchases more regularly. Loyalty schemes are defined as programmes offered by a retailer that offer rewards as an incentive for continued patronage and frequent purchases. Rewards can be in the form of, but not limited to, special offers, free treats, in-store discounts, special events or advanced access to new or limited-edition products.
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EXECUTIVE SUMMARY
- Opportunities for the loyalty market
- Ensure loyalty benefits align with consumer interests…
- …while respecting privacy boundaries
- A sense of exclusivity is in demand for personalised rewards
- There is a need to streamline the earning of rewards
- The fundamentals of retail need to be spot on
- Market dynamics
- Consumer sentiment: the recovery continues
- Graph 1: the financial wellbeing index, 2017-25
- CMA confirms genuine savings for supermarket loyalty scheme members
- What consumers want and why
- Participation dips in 2025
- Graph 2: membership of customer loyalty/reward schemes and paid subscription services, 2020-25
- Grocery schemes see the highest participation and most frequent use
- Graph 3: membership and usage of types of loyalty/reward schemes, 2025
- Clubcard the largest and most frequently used scheme
- Graph 4: leading loyalty/reward scheme membership and use in the last six months, 2025
- Speed of earning points for redemption and member-only rewards should be prioritised
- Graph 5: satisfaction with aspects of the loyalty scheme used most frequently, 2025
- A sole focus on savings is no longer enough
- Graph 6: interest in member/loyalty scheme perks beyond discounts, 2025
- Over a quarter find it hard to keep track of the schemes they are members of
- Graph 7: loyalty scheme experience, 2025
- Affordability is key for brand loyalty
- Graph 8: encouraging factors to keep shopping with a retailer, 2025
- Retailer activity
- A focus on rewarding active engagement in new launches
- Nurturing sub-communities allows for connecting with specific interest groups
- Above the line spending reaches the highest level in four years
- Graph 9: total above-the-line, online display and direct mail advertising expenditure on loyalty/reward schemes, 2021-24
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MARKET DYNAMICS
- Market drivers
- Wages have continued to rise ahead of prices
- Graph 10: real wage growth, annual % in wage growth vs inflation, 2020-25
- Consumer sentiment: the recovery continues
- Graph 11: the financial wellbeing index, 2017-25
- But polarisation in financial position persists
- Graph 12: consumers’ financial situation compared to a year ago, by household income, 2025
- Households are cautiously positive about the prospect of their finances
- Graph 13: the financial confidence index, 2017-25
- Job security will be a defining issue for consumer sentiment
- CMA confirms genuine savings for supermarket loyalty scheme members
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WHAT CONSUMERS WANT AND WHY
- Customer loyalty membership
- Participation dips in 2025
- Graph 14: membership of customer loyalty/reward schemes and paid subscription services, 2020-25
- The most affluent are more likely to be scheme members
- Graph 15: membership of customer loyalty/reward schemes and paid subscription services, by household income, 2025
- Younger shoppers are more likely to pay for schemes
- Graph 16: membership of customer loyalty/reward schemes and paid subscription services, by age, 2025
- The majority have used five or less schemes in the last six months
- Graph 17: repertoire of customer loyalty and reward schemes, by overall membership and those regularly used, 2025
- Scheme membership and regular use
- Over nine in 10 participate in a grocery loyalty/rewards scheme
- Grocery schemes also see the most frequent use
- Morrisons More sees a rise in popularity
- Graph 18: grocery loyalty/reward schemes used in the last six months, 2024-25
- Graph 19: grocery loyalty/reward scheme membership, 2024-25
- Top BPC loyalty schemes see slight decline in membership
- Boots Advantage Card remains the most used BPC loyalty scheme
- Graph 20: beauty and personal care loyalty/reward schemes used in the last six months, 2024-25
- Graph 21: beauty and personal care loyalty/reward scheme membership, 2024-25
- B&Q grows in usage
- Graph 22: leading non-FMCG loyalty/reward schemes used in the last six months, 2024-25
- Graph 23: leading non-FMCG loyalty/reward scheme membership, 2024-25
- Non-FMCG membership skews towards higher earners
- Graph 24: average profile of loyalty/reward scheme members, by age and household income, 2025
- Satisfaction with loyalty/reward scheme used most frequently
- The majority are satisfied with their most frequently used scheme
- Overall satisfaction with individual elements of loyalty schemes is high
- Graph 25: satisfaction with aspects of loyalty schemes used most frequently, 2025
- Speed of earning points for redemption and member-only rewards should be prioritised
- Key Driver Analysis of satisfaction
- Scaling of rewards is another area which needs improvement
- Graph 26: perception of tiered loyalty/reward schemes, 2025
- Satisfaction is higher among younger consumers
- Graph 27: satisfaction with aspects of loyalty schemes used most frequently, by age, 2025
- Boots Advantage Card leads in satisfaction score
- Graph 28: satisfaction with aspects of loyalty schemes used most frequently, by schemes used most frequently, 2025
- Interest in features of loyalty/reward schemes
- A sole focus on price reduction is no longer enough
- Graph 29: ‘I think loyalty/reward schemes should provide members with more perks beyond discounts (eg free gifts, early access to sales)’, by membership type, 2025
- Complimentary treats and multiple ways of earning points are in demand
- Initiatives that don’t zoom in on prices
- Younger shoppers are more drawn to add-on perks
- Graph 30: interest in perks beyond discounts, by age, 2025
- Interests in perks vary by membership types
- Graph 31: interest in perks beyond discounts, by membership type, 2025
- Opportunities to highlight speed in exclusive rewards
- Attitudes towards communications
- Over a quarter find it hard to keep track of the schemes they are members of
- Graph 32: ‘I find it hard to keep track of the loyalty/reward schemes I am a member of’, by age, 2025
- A mixed approach with loyalty/reward schemes is important
- Graph 33: drivers to use loyalty/reward schemes more often, by age, 2025
- Enhancing the impact of email communications
- Graph 34: ‘I receive too many emails from retailers about the loyalty/reward schemes I am a member of (eg new offers, reward balances)’, by age, 2025
- Motivations to stay loyal with a retailer
- Affordability is a key drawcard for brand loyalty
- The role of affordability in brand loyalty increases with age
- Graph 35: encouraging factors to keep shopping with a retailer, by age, 2025
- Non-members focus on the key elements of retail
- Graph 36: encouraging factors to keep shopping with a retailer, by membership type, 2025
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RETAILER ACTIVITY
- Launch activity and innovation
- Extending member pricing to third-party platforms
- A focus on rewarding active engagement in new launches
- Nurturing sub-communities allows for connecting with specific interest groups
- Tesco to use AI to nudge customers towards deals and healthier options
- Partnering with digital entertainment
- Advertising and marketing activity
- Adspend reaches the highest level in four years
- Graph 37: total above-the-line, online display and direct mail advertising expenditure on loyalty/reward schemes, 2021-24
- Celebrating 30 years of rewards with Tesco Clubcard
- Pay Less with More Card
- Deliveroo launches the first campaign focusing on Deliveroo Plus
- IKEA focuses on add-on perks
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APPENDIX
- Supplementary data
- Tesco grows spending in the sector significantly
- TV spending sees notable rise
- Graph 38: total above-the-line, online display and direct mail advertising expenditure on loyalty/reward schemes, by media type, 2021-24
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Consumer research methodology
- Key Driver Analysis methodology
- Interpretation of Key Driver Analysis results
- Graph 39: overall satisfaction with loyalty/reward schemes – key driver output, April 2025
- Nielsen Ad Intel coverage
- Snoop SpendMapper methodology
- Infegy Atlas – coverage
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