Retail loyalty hits a crossroads as customer expectations outpace programme evolution

London, UK, 9 July 2025 | Loyalty remains a strategic priority for retailers, but traditional approaches are no longer enough. That’s according to the findings of ‘How to Keep Hold of Your Customers’, a new global study released today by dunnhumby, the global leader in AI and customer data science.

Drawing on insights from senior retail leaders across Europe and North America, in-depth interviews with Ashwin Prasad (Tesco UK CEO), Bryan Roberts (IGD) and Marek Świderski (Synerise), as well as insights from thousands of grocery shoppers, ‘How to Keep Hold of Your Customers’ points to an industry in flux. As shoppers demand relevance and recognition, retailers are rethinking the very foundations of loyalty, what it means today, and how their programmes must evolve to meet expectations in the years ahead.

Some of the study’s key findings include:

• Customer retention remains the top concern. For many retailers, price sensitivity and limited insight into “less loyal” shoppers are seen as some of the biggest issues.
• Traditional approaches are losing effectiveness. Faced with the prospect of budget cuts, retailers would cut generic rebates and coupons, choosing to protect their personalisation efforts instead.
• Shoppers agree that loyalty needs to evolve. Basic discounts are no longer enough. Today’s shoppers are looking for exclusive offers and rewards that match their own needs and values. Relevance is non-negotiable.
• Effective loyalty programmes drive business performance. Retailers that excel enjoy a deeper emotional connection with customers, see stronger commercial performance, and tend to boast a higher CAGR than their competitors.
• Retailers are looking beyond grocery for inspiration. Beauty and lifestyle brands are commonly cited as innovation inspirations.

Three strategic priorities for retailers

As well as exploring current approaches to loyalty, ‘How to Keep Hold of Your Customers’ also identifies three future focal points for retailers. From tackling the threat of loyalty programme homogenisation to developing the capabilities required for meaningful personalisation, the study contains a wealth of advice for those looking to position themselves effectively for the next phase of loyalty and personalisation.

Ben Snowman, Global Head of Loyalty and Personalisation, dunnhumby, says:

“Loyalty isn’t broken, but it does need to change. Shoppers now expect more than ever in terms of relevance and personalisation, and that requires retailers to ask some difficult questions about their own approach. As technology makes it easier for retailers to deliver true 1:1 personalisation, they’ll need to work smarter than ever to stand out.”

The report includes perspectives on loyalty and personalisation from a range of industry names, including Ashwin Prasad, UK CEO, Tesco, who says:

“Loyalty is about all the little things, every single day, every interaction and showing customers that we’re listening, we care, and we’re reliable. At Tesco we bring loyalty back to what really matters: serving customers better. Loyalty and personalisation aren’t abstract — they’re about earning respect by being useful, relevant, and fair.”

Retailers can download the report today to benchmark their loyalty strategy and access practical guidance: 'How to Keep Hold of Customers with Loyalty & Personalisation' report

Media contact: Head of PR, dunnhumby, [email protected]

About dunnhumby

dunnhumby is the global leader in Customer Data Science, empowering businesses everywhere to compete and thrive in the modern data-driven economy. We always put the Customer First. Our mission: to enable businesses to grow and reimagine themselves by becoming advocates and champions for their Customers.

With deep heritage and expertise in retail — one of the world’s most competitive markets, with a deluge of multi-dimensional data — dunnhumby today enables businesses all over the world, across industries, to be Customer First.

The dunnhumby Customer Data Science Platform is our unique mix of technology, software and consulting enabling businesses to increase revenue and profits by delivering exceptional experiences for their Customers – in-store, offline and online. dunnhumby employs over 2,500 experts in offices throughout Europe, Asia, Africa, and the Americas working for transformative, iconic brands such as Tesco, Coca-Cola, Meijer, Procter & Gamble, Raley’s, and L’Oréal. Learn more at https://www.dunnhumby.com/