Is loyalty crucially significant, tired and dated – or both?
Working out what research is the most relevant can sometimes depend on how the data is interpreted. This is certainly the case with two releases that crossed the Loyalty Magazine desk today.
Research report No.1
New global research of 4,000 consumers finds loyalty programmes now rank among the biggest drivers of repeat purchases, but personalisation remains a major blind spot for brands.
Consumers are becoming increasingly selective about the brands they stay loyal to, yet most marketers are still failing to deliver personalised experiences that build lasting relationships, according to new research by Dotdigital.
The company’s new Customer Trends Index report, partnered with Censuswide to survey 4,000 consumers across the UK, USA, Australia and Singapore. 53% of consumers surveyed said loyalty programmes are important to their future relationship with a brand, but just 15% believe the marketing messages they receive are “very relevant.”
Among the findings:
- 62% of consumers want points-based loyalty programmes, making them the most popular reward model
- 53% want free shipping as a reward, followed closely by cashback (52%) and free gifts or samples (45%)
- 43% want brands to recognise birthdays and anniversaries through exclusive rewards
- Only 15% of consumers believe the marketing they receive from brands is highly relevant
The data also highlights significant generational and regional differences that marketers can’t ignore.
Millennials are the generation most motivated by loyalty programmes, with 59% saying they are important or extremely important when deciding whether to remain loyal to a brand. Meanwhile, 62% of Gen Z consumers prefer free gifts and samples, and 54% of Gen X shoppers prioritise free shipping and returns.
Regional preferences are equally distinct. 47% of Singaporean consumers want personalised discounts, 72% of Australian shoppers cite product quality as their biggest driver of loyalty, and 43% of UK shoppers place free shipping and returns at the top of their loyalty wish list. In the US, 46% of consumers admit they have actively increased their spending simply to reach the next loyalty reward.
The commercial opportunity for brands is significant.
Industry research continues to show that acquiring a new customer can cost up to 25 times more than retaining an existing one. Dotdigital’s research reinforces that loyalty programmes are influencing customer behaviour in measurable ways, with 45% of global consumers saying they have increased their spending over the past year to reach the next reward tier.
Milan Patel, CEO of Dotdigital, said: “Customer acquisition has dominated marketing investment for years, but retention has become one of the biggest growth opportunities available to brands today. Our research shows consumers are willing to increase spend, stay longer and engage more deeply when brands reward loyalty in meaningful, personalised ways.
Research methodology
The findings are taken from Dotdigital’s Customer Trends Index 2026/27. Research was Commissioned by Dotdigital and conducted by Censuswide among 4,000 consumers across the United Kingdom, United States, Australia and Singapore.
Research report No.2
US loyalty company Upside however, concludes from its own data that loyalty programs have hit a plateau with a widening gap between loyalty enrollment and real consumer influence
Their new report, entitled Escaping the Loyalty Plateau, is based on data from more than 12,000 U.S. consumers and retailers. It shows that while 86% of shoppers say loyalty rewards matter to them, regular program usage lags way behind — leaving opportunity gaps of up to 48 percentage points.
“The loyalty plateau is a structural challenge, not a reflection of any individual program’s effort. As the landscape has saturated, consumers now juggle multiple memberships within the same category — and no single program can command the influence it once did. The retailers who will break through are those who shift their focus from merely growing enrollment to genuinely changing behavior among the consumers who are still deciding if they want yet another app on their phone,” said Dr Thomas Weinandy, principal research economist for Upside.
Key Findings
Loyalty enrollment no longer signals brand exclusivity. The average loyalty member belongs to 2–3 competing programs within the same category, a sign of market saturation that limits any single program’s behavioral influence.
Programs shift where consumers spend, not how much. Upside’s loyalty influence scores (scale of -100 to 100) range from 39.2 in grocery to 45.0 in restaurant. Programs are moderately effective at directing frequency and brand recommendations but are least effective at increasing total spending.
Most programs are targeting the wrong consumers. Between 55% and 60% of consumers across categories are “preference-first” — high in both brand affinity and price sensitivity and the most responsive to loyalty incentives. Yet most programs are built to reward already-committed customers, missing the persuadable majority.
Combining loyalty with a marketplace drives stronger retention. Upside’s transaction data from 5.5 million customers shows that pairing a loyalty program with Upside reduces month-one churn by more than 30 percentage points compared to consumers using neither.
As the loyalty landscape grows more crowded, the report offers a framework for understanding where programs stand today and what it takes to move forward. The full report includes a breakdown of consumer types, category-level influence scores, and retention data across millions of transactions. Download the Escaping the Loyalty Plateau report