If you live in the UK, you’ve been exposed to plenty of loyalty programmes. You see them in restaurants, supermarkets, retailers, the list goes on. And there’s a good reason for it – it works. The UK loyalty market is set to nearly double by 2030, from $2.33 billion (£1.8 billion) to $4.06 billion (£3.2 billion).
For any UK business, this presents opportunities and challenges. They know loyalty programmes help retain customers. The problem is that the programmes that work now likely aren’t going to work in 2030. Companies that want to succeed in this space will have to consistently improve their loyalty rewards to win against the changing market and increasing competition.
Points alone aren’t enough
If you’re reading this, you probably have a Tesco Clubcard, Sainsbury’s Nectar, or Mark & Spencer Sparks. It goes without saying that they’re part of our everyday shopping habits, and this won’t change. However, how they operate will change.
Traditional pointing systems are becoming less desirable. That’s why companies are now developing personalised, app-led experiences that go way beyond “just collecting points”. Tesco, for example, has started tying ClubCard rewards to specific product categories with personalised challenges. Again, Central Co-op has launched a gamified membership app with Lobyco, featuring cashback benefits, daily rewards, and more.
The logic behind these changes makes a lot of sense. They’re mirroring what works on other digital platforms. From fitness apps that reward users based on their streak to entertainment platforms like online casinos offering a daily free spin on their site, each brings users back onto their platform through simple reward anticipation.
Apps are becoming the default
Source: Unsplash
App-led loyalty will be the new loyalty programme. This allows businesses to have lower-friction identification at checkout, tighter access to first-party customer data, and more control over how they communicate with members.
The communication part is very important. Apps offer faster testing, more personalisation, and mechanics, like gamified features. Customers will instantly engage with such features, and for businesses, it means easier access to data and more personalisation.
This change is happening now as well. 60% of enterprise brands plan to further integrate promotions and loyalty in 2026. Many of these are looking to modernise their programmes also, to meet the demands of the market.
Partnerships and ecosystems
Another shift we’re experiencing is towards partnerships. UK loyalty programmes are increasingly focusing on ecosystems that go beyond a single brand. British Airways, for example, recently partnered with Olympia to offer exclusive access to loyalty members.
The goal is relatively simple. Give customers a reason to engage outside the core purchase cycle by turning the loyalty scheme into something that you use to check out with to something you use regularly, regardless of where you shop.
For UK businesses watching the market change, the message is to focus on loyalty programmes. Come up with unique ways to capture and retain customers not just for you, but also for your partners, while making it engaging and seamless. By focusing on both, you can develop a natural ecosystem that pays itself consistently.
