The UK loyalty market is commonly touted as mature, stuffed with established giants like Tesco, Boots, and Nectar. Nevertheless, maturity doesn’t all the time equate to success. Whereas the UK boasts a panorama wealthy with loyalty packages, current findings from our World Buyer Loyalty Report 2025 reveal a posh image of buyer and marketer satisfaction. So on this article, we’ll dive into the UK loyalty program traits – and what does it imply for customers and corporations of this area.
In case you are on the lookout for the worldwide counterparts of the UK statistics listed on this article (or on the lookout for insights on different nations), ensure to obtain our World Buyer Loyalty Report 2025 – it has over 600 statistics!
The Present Panorama of UK Loyalty Packages
One placing revelation is that solely 57% of UK program homeowners are happy with their loyalty packages, considerably decrease than the worldwide common of 70%. This dissatisfaction stems from a number of components. For instance, many UK packages wrestle with differentiation, with 70% of manufacturers admitting their packages lack a novel promoting level, in comparison with 53% globally. This “all the identical” challenge results in stagnation and a failure to satisfy the excessive expectations of UK customers.
One other signal of this maturity, or maybe stagnation, is underinvestment. UK manufacturers allocate solely 26% of their advertising funds to loyalty and CRM, falling under the worldwide common of 31%. This reluctance to put money into innovation additional contributes to the shortage of differentiation and general satisfaction. It’s a cycle the place the concern of not standing out results in much less funding, which in flip makes it more durable to face out.
The Large Shopper Wishlist of UK Customers
Once we take a look at shopper preferences, some fascinating UK-specific traits emerge. UK prospects have a shocking fondness for plastic loyalty playing cards, with 38% preferring them, the best proportion globally. This contrasts with the rising pattern of digital loyalty options seen in different areas. Nevertheless, this doesn’t imply digital is off the desk. For instance, Whittard of Chelsea has efficiently applied cell passes.
UK members are additionally extremely discount-driven, with 75% becoming a member of loyalty packages to earn reductions, rewards, and cashback affords. Whereas this aligns with world traits, the UK ranks third highest on this regard, behind Australia and Canada. This means that whereas reductions are a main motivator, they won’t be sufficient on their very own to foster deep loyalty.
Untapped Alternatives & Way forward for AI on the UK Market
Curiously, AI just isn’t but a serious draw for UK loyalty program members. Solely 23% would be part of a program particularly for its AI options, in comparison with a world common of 39%. This doesn’t imply AI shouldn’t be used, however slightly that it’s not a key promoting level for attracting new members within the UK.
Lastly, factors pooling is an untapped alternative. Whereas 53% of UK customers choose manufacturers that supply factors pooling, solely 26% of UK manufacturers plan to implement it. This presents a transparent hole between shopper want and model choices.
So, how can UK manufacturers break the mould and enhance their loyalty packages?
- Embrace revolutionary applied sciences like agentic AI for program idea and administration.
- Replatforming must also be quicker, which could be achieved with instruments like Antavo’s Loyalty Planner.
- Capturing invisible retail purchases via receipt scanning may assist to collect worthwhile buyer information.
- Introducing factors pooling and household accounts can meet the rising shopper demand for shared advantages.
In conclusion, the UK loyalty panorama is mature however faces challenges in differentiation and funding. Understanding UK-specific shopper preferences, such because the love for plastic playing cards and the will for reductions, is essential. By embracing innovation and addressing the gaps between shopper expectations and model choices, UK manufacturers can revitalize their loyalty packages and construct stronger buyer relationships.
Need to strike up a dialog about launching your loyalty program? Get in contact with our consultants by reserving a demo to see our platform’s capabilities or sending us an RFP.
Additionally, don’t neglect to obtain our World Buyer Loyalty Report 2025, for those who haven’t already!
Zsuzsa is the Chief Technique Officer and Co-founder of Antavo. She has skilled Antavo develop from a startup right into a market-leading, world scaleup for loyalty program expertise, serving world manufacturers and retailers. She was named Persona of the Yr on the 2024 Worldwide Loyalty Awards, and listed by Forbes as considered one of Europe’s prime 100 feminine founders in tech, Zsuzsa is a former journalist acknowledged by the European Fee.
