Young Brits feel more loyal to retailers but are quickest to quit poor loyalty schemes

Young British shoppers say they feel more loyal to retailers than they did three years ago, but they are also the quickest to walk away from a loyalty scheme that disappoints. Research from HyperFinity, Bloomreach and Eagle Eye found that 61% of under-35s feel more loyal to retailers than in 2023, yet 28% have stopped shopping with a retailer because of its loyalty programme, compared with just 10% of over-65s, as Decision Marketing reported.

What the research found

The study, released alongside HyperFinity’s Retail Loyalty Index Pulse report, surveyed 2,000 UK consumers who belong to at least one of the 51 loyalty programmes in the March 2026 Retail Loyalty Index. HyperFinity is a retail analytics company, while Bloomreach and Eagle Eye both sell marketing and loyalty technology to retailers, so the findings come from firms with a stake in better schemes.

Shoppers are relaxed about the technology but not excited by it. Some 69% said they are comfortable with AI being used to deliver more relevant deals, yet only 4.4% picked AI-powered recommendations as the retail trend they most want to see. Value still matters most: 44% said they would stay loyal through rising household costs if the rewards were worthwhile, while lower-income households are more likely to switch to a cheaper retailer.

Thomas Hill, HyperFinity’s co-founder, said a scheme with generic rewards or one that fails to deliver on its promises can quickly undermine the relationship. “Personalisation is becoming an expectation rather than a reward in itself,” he added.

Why it matters

Loyalty schemes are having a moment in UK marketing. Coca-Cola has just launched The Club, its first UK loyalty scheme since Coke Zone, and Heineken is trialling Pubscription, which gives members a free pint a week. Both are chasing exactly the younger audience this research says is most likely to punish a scheme that underdelivers.

The finding also cuts against the idea that a loyalty scheme is a safe, always-on retention tool. For under-35s, a poorly run programme is a reason to leave, not just a missed opportunity. Add the scrutiny of member-only pricing, which Aldi’s boss has accused rivals of using to “dupe” shoppers, and the message for brands is simple: a scheme now has to prove its value in every interaction, or it becomes the reason customers go elsewhere.