Young people in the UK might get a lot of stick for being flaky, over-sensitive and obsessed with celebrity culture but it seems they are also the most unforgiving when it comes to retail loyalty schemes, despite feeling more faithful than they did three years ago.
So says a new study by AI-powered actionable intelligence company HyperFinity, which reveals that over three-fifths (61%) of under-35s feel more loyal to retailers than they did in 2023, yet 28% have stopped shopping with a retailer because of its loyalty programme. This is compared with just 10% of over-65s.
The findings are released alongside HyperFinity’s Retail Loyalty Index Pulse report, produced with Bloomreach and Eagle Eye, which quizzed 2,000 UK consumers, who belonged to at least one of the 51 loyalty programmes featured in the March 2026 Retail Loyalty Index.
HyperFinity co-founder Thomas Hill said: “Younger shoppers may feel more loyal to retailers, but that loyalty cannot be taken for granted. A scheme that offers generic rewards or fails to deliver on its promises can quickly undermine that relationship.
“There is no one-size-fits-all approach to loyalty – retailers need to understand what individual customers value and make sure the benefits they offer are relevant, worthwhile and deliverable.”
That challenge extends to personalisation. Although shoppers may expect offers to reflect their interests, they do not necessarily see the technology behind them as a benefit in itself.
The report found that 69% are comfortable with AI being used to deliver more relevant deals, but just 4.4% identified AI-powered recommendations as a retail trend they most want to see.
Hill added: “Personalisation is becoming an expectation rather than a reward in itself. Customers aren’t concerned about the technology behind an offer; they want offers that are relevant, useful and worth acting on. AI can help retailers deliver that, but only if it improves the customer experience.”
The report also highlights the importance of value in these financially challenging times. While 44% of shoppers say they would stay loyal to a retailer through rising household costs if the rewards were worthwhile, lower-income households are more likely to prioritise switching to a cheaper retailer. For loyalty schemes to retain customers, the value they promise must be meaningful as well as relevant.
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