The UK loyalty market is often touted as mature, filled with established giants like Tesco, Boots, and Nectar. However, maturity doesn’t always equate to success. While the UK boasts a landscape rich with loyalty programs, recent findings from our Global Customer Loyalty Report 2025 reveal a complex picture of customer and marketer satisfaction. So in this article, we will dive into the UK loyalty program trends – and what does it mean for consumers and companies of this region.
If you are looking for the global counterparts of the UK statistics listed in this article (or looking for insights on other countries), make sure to download our Global Customer Loyalty Report 2025 – it has over 600 statistics!
The Current Landscape of UK Loyalty Programs
One striking revelation is that only 57% of UK program owners are satisfied with their loyalty programs, significantly lower than the global average of 70%. This dissatisfaction stems from several factors. For example, many UK programs struggle with differentiation, with 70% of brands admitting their programs lack a unique selling point, compared to 53% globally. This “all the same” issue leads to stagnation and a failure to meet the high expectations of UK consumers.
Another sign of this maturity, or perhaps stagnation, is underinvestment. UK brands allocate only 26% of their marketing budget to loyalty and CRM, falling below the global average of 31%. This reluctance to invest in innovation further contributes to the lack of differentiation and overall satisfaction. It’s a cycle where the fear of not standing out leads to less investment, which in turn makes it harder to stand out.
The Big Consumer Wishlist of UK Consumers
When we look at consumer preferences, some interesting UK-specific trends emerge. UK customers have a surprising fondness for plastic loyalty cards, with 38% preferring them, the highest percentage globally. This contrasts with the growing trend of digital loyalty solutions seen in other regions. However, this doesn’t mean digital is off the table. For example, Whittard of Chelsea has successfully implemented mobile passes.
UK members are also highly discount-driven, with 75% joining loyalty programs to earn discounts, rewards, and cashback offers. While this aligns with global trends, the UK ranks third highest in this regard, behind Australia and Canada. This indicates that while discounts are a primary motivator, they might not be enough on their own to foster deep loyalty.
Untapped Opportunities & Future of AI on the UK Market
Interestingly, AI is not yet a major draw for UK loyalty program members. Only 23% would join a program specifically for its AI features, compared to a global average of 39%. This doesn’t mean AI shouldn’t be used, but rather that it’s not a key selling point for attracting new members in the UK.
Lastly, points pooling is an untapped opportunity. While 53% of UK consumers prefer brands that offer points pooling, only 26% of UK brands plan to implement it. This presents a clear gap between consumer desire and brand offerings.
So, how can UK brands break the mold and improve their loyalty programs?
- Embrace innovative technologies like agentic AI for program concept and management.
- Replatforming should also be faster, which can be achieved with tools like Antavo’s Loyalty Planner.
- Capturing invisible retail purchases through receipt scanning can also help to gather valuable customer data.
- Introducing points pooling and family accounts can meet the growing consumer demand for shared benefits.
In conclusion, the UK loyalty landscape is mature but faces challenges in differentiation and investment. Understanding UK-specific consumer preferences, such as the love for plastic cards and the desire for discounts, is crucial. By embracing innovation and addressing the gaps between consumer expectations and brand offerings, UK brands can revitalize their loyalty programs and build stronger customer relationships.
Want to strike up a conversation about launching your loyalty program? Get in touch with our experts by booking a demo to see our platform’s capabilities or sending us an RFP.
Also, don’t forget to download our Global Customer Loyalty Report 2025, if you haven’t already!
Zsuzsa is the Chief Strategy Officer and Co-founder of Antavo. She has experienced Antavo grow from a startup into a market-leading, global scaleup for loyalty program technology, serving global brands and retailers. She was named Personality of the Year at the 2024 International Loyalty Awards, and listed by Forbes as one of Europe’s top 100 female founders in tech, Zsuzsa is a former journalist recognized by the European Commission.
