Data fatigue or retail goldmine? Why loyalty schemes are being rethought in 2025
Loyalty schemes used to be simple. You bought something, got a stamp or some points, and eventually earned a freebie or discount.
Fast forward to 2025, and things look very different. Now, loyalty programmes track spending habits, visit frequency, location, and sometimes even mood, offering highly personalised deals in return. But this constant tracking has left many customers feeling watched, rather than rewarded. So, is loyalty still the golden ticket for retailers, or are shoppers starting to push back?
Why Personalisation Is a Double-Edged Sword
Retailers have become experts in customer profiling. Loyalty schemes aren’t just about building customer relationships anymore; they’ve turned into vast data engines. From supermarkets to smartphone apps, the goal is to collect as much information as possible to drive tailored promotions. For some shoppers, this works well. A coffee voucher just when you’re thinking about your mid-morning break? Convenient. But for others, it’s starting to feel like too much.
Never Miss a Retail Update!This pattern isn’t limited to supermarkets and fashion brands. Even entertainment platforms, including the best casinos not on GamStop UK, have adopted detailed loyalty systems that reward regular players with free spins, cashback offers, and exclusive access to live games.
These casinos, often based outside the UK but still operating under recognised licences, use player data to tailor incentives without being part of the UK’s national self-exclusion programme. It’s a strong example of how data-led loyalty has spread beyond traditional retail, and why its appeal is being both celebrated and questioned.
The Rise of “Loyalty Fatigue”
There’s a growing sense among consumers that they’re being signed up for more than they bargained for. Every app, store, or website now seems to offer its own version of a loyalty club. Shoppers are bombarded with messages, birthday rewards, seasonal offers, and points expiry warnings. The result? Many are tuning out.
According to a 2025 report by KPMG, nearly half of UK consumers said they ignore or delete loyalty emails. A third admitted they rarely check how many points they’ve earned. The novelty has worn off. What used to feel like a reward now feels like homework.
Retailers are beginning to notice. Some are scaling back the number of messages they send. Others are trying new formats that feel less intrusive, such as giving discounts at the till without needing to scan a card or open an app. The aim is still to keep shoppers engaged, but with less friction and fuss.
Trust and Transparency Are Back in Focus
It’s not just volume that’s the issue. It’s trust. Many consumers are no longer sure where their data is going or how it’s being used. Scandals involving data misuse, even from years ago, still weigh heavily on public opinion. People want to know that if they’re sharing something as personal as their shopping habits or location, they’re getting real value in return.
Some retailers have responded by putting their data policies front and centre. Marks & Spencer, for instance, now includes regular reminders of how data is used and what customers can opt out of. Other brands have introduced “no tracking” options within their apps, giving people the ability to collect points without being profiled.
This shift reflects a larger trend: loyalty has to feel like a fair exchange. If the retailer is benefiting from a deeper understanding of its customers, those same customers expect genuine benefits in return, not just generic discounts.
What Works Now: Simplicity and Surprise
There’s no one-size-fits-all formula for building a better loyalty programme in 2025. But the most successful schemes seem to share a few things in common. First, they’re simple. They don’t ask users to download multiple apps, link accounts, or scan barcodes at every turn. Points build automatically, rewards are clear, and redemptions are easy.
Second, they include an element of surprise. Whether that’s an unexpected free item or an unannounced discount at checkout, retailers are learning that people respond better to small, spontaneous rewards than to offers that feel too targeted. It removes the sense of being tracked and brings back a little joy to the process.
Lidl Plus is a good example. The app offers weekly scratch cards where users can win discounts on the spot, there’s no major data mining involved, and the reward feels immediate and fun.
Where Loyalty Goes From Here
The question now is how much further loyalty schemes can be pushed before customers start to switch off entirely. Retailers that get it right will be the ones who focus less on raw data collection and more on meaningful exchanges. Those who continue to over-message and over-monitor may find their most loyal customers becoming their most disengaged.
There’s still a strong appetite for loyalty when it’s done well. People enjoy being recognised and rewarded. But as with most things in 2025, it has to feel respectful and worthwhile. The days of endless tracking and impersonal offers are fading. In their place is a new approach, quieter, sharper, and better tuned to what real people actually want.
