New research reveals major retailers in the UK are losing out on huge revenue streams by not applying strategic investment to their customer loyalty programmes.
The Retail Loyalty Index (RLI), developed by HyperFinity, in partnership with Bloomreach and Eagle Eye, surveyed 2,200 UK customers of 51 major retailers to identify the UK’s top performing retail loyalty schemes and the revenue impact of customer loyalty.
A definitive benchmark of loyalty programme performance in the UK, the index is designed to help retailers understand what actually drives satisfaction and repeat purchases.
The research covered nine sectors, including grocery, quick service retail (QSR), coffee, health and beauty, and fashion. Customers were asked to rate two loyalty programmes they actively use by answering questions about satisfaction, how likely they are to recommend the scheme and how it influences their decision to shop with the retailer over any other.
They were then asked questions around seven ‘core revenue drivers’ of customer loyalty. These included: how valued the programme makes them feel, personalisation, ease of use, the appeal of rewards and whether the retailer handles their data securely.
The index found there was a clear ‘power trio’ of revenue drivers, accounting for over half (53%) of total influence on customer loyalty. These were:
Better value (18.8% influence) – customers want clear financial returns
Feeling valued (18.5% influence ) – recognition matters as much as rewards
Appealing rewards (16.1% influence) – benefits must be desirable and relevant
The findings were then analysed to generate an all-in-one revenue indicator score for retailers, coined as the ‘RLI score’.
The score out of 10 incorporates customer satisfaction, likelihood to recommend, and influence on choice, as well as how highly each retailer scored for the core revenue drivers.
Overall, the analysis showed that a 1 point increase in RLI is associated with a 7-8% increase in the likelihood to shop again, therefore generating increased revenue for retailers.
The analysis of the criteria revealed the UK’s top 10 loyalty schemes, based on their RLI scores out of 10:
The top 10 UK loyalty programmes | ||
Rank | Retailer | RLI score (/10) |
1 | Tesco Clubcard | 8.38 |
2 | Leon Club | 8.20 |
3 | Pret Perks | 8.13 |
4 | Wickes Trade Pro | 8.13 |
5 | Hamleys Rewards Points | 8.13 |
6 | Itsu Rewards | 8.12 |
7 | Sainsbury’s Nectar | 8.10 |
8 | Greggs Rewards | 8.04 |
9 | Sweaty Betty Insiders | 8.01 |
10 | JD Status | 8.00 |
A pioneer of customer loyalty, the index found Tesco Clubcard is the nation’s favourite loyalty programme – scoring highly across each of the ‘power trio’ of revenue drivers. Fans describe Clubcard as a “very generous programme with plenty of options to redeem” and as making shopping “extra affordable and easy.”
Customers scored Tesco Clubcard highly for emotional loyalty and frequency, with the highest ‘continue to shop’ score (9.16/10).
Leon Club ranked second in the UK, scoring highest for providing value to customers (8.03), how valued customers feel (8.28), and the personalisation of loyalty schemes (8.22). Despite a restructure of store estate following administration, Leon’s loyalty programme is going from strength to strength.
The quick-service restaurant scored highly in the index for personalisation and how valued customers feel. It also scored highly for satisfaction (8.05) and recommendation (8.28), indicating customers are happy to refer the programme to others.
One customer surveyed in the poll commented: “It’s quicker and cheaper to build up rewards compared to other schemes.”
Peter Denby, CEO at HyperFinity comments: “There are a number of reasons Tesco Clubcard and Leon Club scored so highly, but primarily, it comes down to simplicity, flexibility and ease of use.
“They both stand out as experiences built around emotional connection, relevance and trust, rather than complex mechanics or heavy discounting.”
Peter Denby continued: “The Retail Loyalty Index shows the message from consumers is clear: loyalty works when it’s valuable, visible, and personal, and emotional loyalty now matters just as much as financial value.”
Huh Kimber, SVP and general manager EMEA & APAC at Bloomreach, added: “The best loyalty programmes don’t just reward transactions — they create meaningful, connected experiences across every touchpoint.
“Our research shows that shoppers want to feel recognised whether they’re in-store, online, or on an app. Personalisation isn’t a nice-to-have anymore; it’s the foundation of loyalty that actually lasts. Retailers who use data to deliver consistent, relevant experiences are the ones building genuine emotional connections with their customers.”
Tim Mason, CEO at Eagle Eye, added: “The findings from this year’s Retail Loyalty Index reinforce what we’re seeing across the market: loyalty performance is increasingly tied to a retailer’s ability to execute real-time, personalised offers and engagement that are relevant and of value to the individual.
“Programmes that move beyond points and discounts to deliver targeted rewards and clear customer value are driving stronger revenue impact, long-term customer retention and lifetime value.”
To read the full report, visit: https://hyperfinity.ai/retail-
