Shoppers Are Joining Loyalty Programs but Using Fewer of Them — What Retailers Should Fix

Retailers can collect plenty of loyalty sign-ups without winning much loyalty. New 2026 research shows shoppers are joining multiple programs while concentrating their attention on only a handful.

For small retailers, the challenge is making one of those memberships worth using. Clear rewards, easy redemption, and responsible use of customer data matter more than adding features customers rarely touch.

EY's 2026 Loyalty Market Study found that traditional measures such as enrollment and ROI remain strong even as consumers use fewer programs and pay less attention to their rewards. Numerator's July research similarly found that more than three-quarters of surveyed shoppers belonged to at least three free loyalty programs.

What shoppers value beyond points

A Deloitte survey of 5,564 US loyalty-program members found that consumers belonged to eight programs on average but actively used only five. Asked specifically about their preferred brand's program, 72% said membership made them more likely to spend with the brand, while 56% said it increased their spending.

Shoppers also value different kinds of rewards. Some prioritize immediate savings; others care more about convenience, exclusive access, or experiences. Small retailers can test those benefits against purchase behavior before adding more tiers or perks.

Retailers building a program from scratch can use our guide to creating a loyalty program for setup and implementation, while our customer loyalty program ideas cover specific reward structures and examples.

Why loyalty members disengage

Rewards lose their pull when customers have to wait too long or work too hard to use them. EY's research found continued frustration with delayed rewards and declining attention to reward balances, while Deloitte found that 40% of respondents sometimes forget to redeem rewards.

Small retailers can shorten the path to a meaningful first reward, reduce the steps required to redeem it, and compare engagement before and after each change. Simpler redemption also helps reveal whether the reward itself is weak or the process is getting in the way.

Personalization depends on trust

Personalized rewards depend on customers trusting how their data is used. A PwC survey of 5,511 US consumers found that 53% considered sharing personal information worthwhile when it made interacting with a brand smoother, but 93% said mishandling that data would cost a brand their trust.

A 2026 NRF-IBM study of more than 18,000 global consumers found that 52% were comfortable sharing data with retailers, while 83% reported overlapping concerns about privacy, misuse, or unwanted marketing. Ask only for data the program needs, explain how it will be used, and make the benefit to the customer clear.

How to tell if your loyalty program is actually working

Total enrollments are a weak measure on their own. A better scorecard includes active-member rate, time to first reward, redemption rate, and incremental spending.

Numerator cautions that higher sales or loyalty-program enrollment do not necessarily signal stronger loyalty because shoppers may spread their spending across competing retailers. Compare behavior before and after enrollment where possible. Customers who were already frequent shoppers may be more likely to join, so member revenue alone does not prove the program caused an increase.

Then add software fees, rewards, messaging, staff time, and fulfillment expenses. A program that increases sales can still disappoint if reward costs erase the added margin.

What small retailers should check first

Start with the simplest question: are members using the program? If activity is weak, check whether the first reward takes too long to earn. If redemption is low, review whether the benefit is obvious and easy to claim. If members are active but spending doesn't increase, test whether the program is changing behavior or simply rewarding customers who would have purchased anyway.

Shoppers still use loyalty programs, but membership alone is a low bar. Small retailers have a better chance of earning repeat business when rewards are easy to understand, worthwhile to redeem, and backed by data practices customers can trust.