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Consumers no longer view loyalty programmes simply as a way to get discounts, they are looking for value and security: those which get it right will see Brits keep coming back; spend more on them and shoppers will become brand advocates, too.
That is the standout conclusion of a new study of more than 2,000 UK consumers, commissioned by the data-driven loyalty and engagement platform LoyaltyLion.
It reveals that over half of UK shoppers (55%) say they are more likely to join loyalty schemes now than they were a year ago as economic uncertainty continues to shape spending habits.
Younger generations are even keener, with 71% of Gen Z and 72% of Millennials saying they are more likely to sign up than they were 12 months ago.
UK consumer confidence rose slightly in June but remains negative at -18, far below the -12 recorded a year ago, according to the GfK Consumer Confidence Index.
Households are still cautious under the dark shadow of inflation and worries about rising petrol prices due to Middle East tensions. Despite a slight rise, views on the UK’s economic situation remain bleak, with the past year still deeply negative at -43 and expectations for the year ahead at -28, both far worse than this time last year.
Amid cost-of-living pressures – the Consumer Prices Index rose by 3.4% in the 12 months to May 2025 – and market unpredictability, loyalty programmes are becoming more than a marketing tool, they are a safety net for brands and shoppers alike.
Over six in ten (64%) UK consumers say they prioritise shopping with brands that have loyalty schemes during economic uncertainty. For Millennials, that rises to 75%. And done well, a loyalty club increases repeat purchases; 82% are more likely to shop with a brand whose loyalty programme they are a member of.
In times of economic uncertainty, trust and customer experience are just as important as financial gain in purchasing decisions.
Financial rewards do matter – some 84% of UK shoppers say discounts motivate them to join loyalty programmes – but adding experiential perks, ways to connect emotionally, and rewards that make consumers feel valued increases a brand’s ability to build a truly loyal community.
Seven in ten (73%) Gen Z and Millennials say experience-based rewards like early access to products, exclusive events, or opportunities to contribute to new product development motivate them to enrol.
And consumers are seeing value, both financially, and for their lifestyle. Over half (53%) say loyalty programmes are more financially rewarding than they used to be, showing how brands are stepping up to deliver what matters to consumers. Slightly more, 55%, say the programmes are offering more experiential rewards than before.
In fact, a third (32%) of shoppers reckon they would pay to enrol in a programmes – an average of £14.56 – rising to seven in ten (70%) of Gen Z.
In uncertain times, shoppers are looking for value wherever they can find it. Nearly eight out of ten (78%) are willing to complete a quiz or profile in exchange for loyalty points, showing they are ready to share data if it helps them save money or get more out of their purchases.
Even so, only 59% of UK shoppers feel loyalty programmes actually deliver personalised experiences, and just 55% feel loyalty emails are tailored to them. For brands, that is a potentially huge missed opportunity to create meaningful connections and deliver the personalised value shoppers are craving.
When money is tight, convenience matters. Nearly three-quarters (74%) of UK shoppers say a consistent loyalty experience online and in-store is important to them, and 69% value being able to access loyalty programmes on their mobile.
In economic uncertainty, making it easy for shoppers to access rewards and benefits wherever they are can be the difference between a one-off purchase and long-term loyalty.
LoyaltyLion chief executive Charlie Casey said: “This research shows loyalty is about more than discounts. It’s about creating a space where customers feel understood, valued, and excited to return.”
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