This article is By Attila Kecsmar, Co-founder and CEO, Antavo
Customer loyalty has always mattered to business leaders, but in 2026, it has taken on new urgency. With household budgets still stretched following years of inflationary pressure and geopolitical uncertainty reshaping global trade, the question of whether retention investment works has moved firmly onto boardroom agendas across the UK. The answer, according to a growing body of evidence, is more complicated than most organisations would like to admit.
A significant finding from Antavo’s 2026 Global Customer Loyalty Report is that 82% of marketers globally believe their loyalty programmes make customers feel valued. Among consumers, only 56% agree. In the UK, that gap is slightly wider as 83% of UK marketers hold the same belief, yet just 54% of UK consumers share it.
In the current climate, where the British Retail Consortium reported annual shop price inflation rising to 1.2% in May 2026 and the Bank of England has forecast consumer price inflation could reach 3.7% by year end, the margin for getting retention wrong is much thinner.
What Loyalty Programmes Are Delivering
Loyalty programmes continue to prove their worth. Of the brands that track performance, 83% report positive returns, generating an average of 5.2x revenue compared to programme costs. Nearly nine in ten programme owners also believe their loyalty programme delivers value that would otherwise be lost.
However, positive overall results can hide issues at the customer level. Individuals who sign up for membership but fail to actively participate are still included in the overall enrollment statistics. Many businesses often focus on these figures and wrongly assume they indicate loyalty among their members.
The Structural Failures Businesses Are Missing
Research highlights several issues that can undermine the effectiveness of loyalty programmes. A primary concern is the design of rewards, with over a quarter of loyalty points in the UK going unspent, equating to an estimated £3 billion in unrecognised savings for consumers. Many members express frustration with the time required to earn rewards, point expiration, and the lack of attractive rewards, which can diminish the intended sense of value these programmes aim to provide.
Integration is another significant challenge, as 71% of brands express dissatisfaction with how their loyalty programmes are integrated into the overall consumer experience. When customers’ loyalty status isn’t recognised at checkout or when benefits aren’t consistently accessible across channels, it sends a contradictory message to consumers.
A measurement gap also exists, with 90% of programme owners reporting difficulties in analysing their loyalty data. This lack of insight prevents businesses from addressing perception issues, leading to stagnation in programme effectiveness.
A subtler failure emerging in grocery retail is where two-tier pricing structures can distort the meaning of loyalty cards. Instead of symbolising brand loyalty, they often serve as a prerequisite for fair pricing, which dilutes the relational aspect that loyalty programmes were originally built upon. This shift has led 67% of consumers to believe that brands prioritise new customers over their loyal existing ones.
What Consumers Want from Loyalty Programmes
Understanding customer motivations for joining loyalty programmes reveals that the primary incentive for 70% of members is the opportunity to earn rewards, discounts, or cashback. Beyond these essential benefits, consumers also prioritise flexibility within loyalty programmes. 41% wish for points that never expire, while 40% seek various earning possibilities, and 34% desire greater freedom in how they redeem their rewards. 81% also express a preference for brands that offer reward customisation, though only 49% of programme owners meet this expectation, highlighting a gap that contributes to consumer dissatisfaction.
The biggest difference between the most successful loyalty programmes and purely transactional ones is emotional loyalty. Consumers don’t just want rewards—they want to feel recognised and valued. Research shows that 60% of consumers would choose a brand with a loyalty programme over one without, while 78% are more likely to stay loyal to brands that reward them for their continued custom. The strongest loyalty programmes combine tangible rewards with experiences that make customers feel appreciated.
Where Businesses Need to Focus
Many UK business leaders are missing the mark when evaluating their loyalty programmes. Common metrics such as points balances, redemption rates, and Net Promoter Scores often reflect transactional behaviour rather than the emotional connection that a customer feels towards a brand. This emotional conviction is vital for driving repeat purchases, especially when competitors offer lower prices.
So what must change? Businesses should audit their programme design based on customer frustrations rather than internal perceptions of success. There is a consistent trend of overestimating performance in loyalty, data, and personalisation initiatives when measured against customer experiences.
To improve engagement, companies should focus on fast reward redemption and instant recognition at the point of purchase, as these strategies address the primary reasons for member disengagement. It’s important to deliver value earlier in the customer journey rather than waiting for high-spending thresholds that some customers may never reach.
For loyalty to succeed, leadership teams must be fully committed to it as a long-term business strategy, not just a marketing initiative. Building genuine customer loyalty requires ongoing investment in customer experience, personalisation, recognition, and value creation. These efforts cannot be delegated to a loyalty team alone; they need support across the organisation.
The brands that close the perception gap are those that recognise loyalty is earned, not claimed. By committing to the customer relationship over the long term, they build trust, increase retention, and create connections that competitors cannot easily disrupt with discounts or promotions.