Despite ubiquitous ‘members only’ pricing driving discount fatigue, 28 percent of shoppers will only shop with retailers offering loyalty pricing perks, finds RTS research

With many retailers offering members’ pricing within their loyalty programmes, the ubiquity of loyalty pricing means it could be losing its appeal as a perk among shoppers, according to the latest research by the Retail Technology Show (RTS).

Original research of over 1,000 UK shoppers by RTS suggests that over half (54 percent) of consumers feel that, because so many retailers now offer ‘members only’ loyalty pricing, they now regard it as the ‘norm’ and no longer consider it a true loyalty perk.

However, despite loyalty pricing fatigue setting in and widespread ‘members only’ pricing being available, a growing number of consumers now expect this perk to be offered by retailers. Over a quarter (28 percent) will only shop with retailers who offer special discounts for loyalty members, up five percent year-on-year.

Almost three quarters (72 percent) agreed that members’ pricing is an effective way of encouraging them to sign-up to loyalty schemes, and a further 50 percent would be less likely to sign up if loyalty programmes didn’t offer members only pricing. A further 48 percent said lack of these discounts would make them less likely to use their loyalty card or retain their membership.

Matt Bradley, Event Director at RTS, commented: “Retailers and consumers are on the same page when it comes to the value exchange around ‘members only’ loyalty pricing – with shoppers often willing – and eager – to provide their data in return for preferential prices in-store, while providing retailers with an effective way to grow customer databases. But the real win, both for the customer and the retailer, is dependent on how retailers effectively leverage that data to improve customer experience, hone their retail offering and deliver personalisation at the shelf-edge that powers performance.”

While the validity of loyalty discounts had previously been called into question, with consumer groups warning that discounts were being offered on overinflated ‘normal’ prices, the CMA ruling in November 2024 found these offers did provide ‘genuine’ deals. However, 48 percent of shopper still felt by offering such large discounts to loyalty members, normal shoppers were being ‘ripped off’, highlighting the need for transparency and trust between the retailer and shopper to ensure customer loyalty isn’t eroded.

Speaking at RTS 2025 on Day 1, James Rutter, Cook’s Chief Creative Officer, explores how retailers can drive engagement through responsible retail, while River Island CIO, Simon Pakenham-Walsh, joins Georgie White, CCO at Holland & Barrett, and Jo Graham, CDIO at pharmacy2u, for a keynote panel session discussing customer strategies for driving profit and market share.  Nuno Miller, Chief Digital Officer at N Brown Group will also take to stage, joining a fireside chat with Angus Hayman, WH Smith’s former Ecommerce Director and consultant at Akeneo, to discuss the role of product experience in shaping loyalty.

Retail Technology Show takes place on 2^nd and 3^rd April 2025 at ExCeL London. Register to attend for free here: https://www.retailtechnologyshow.com.

Image courtesy of Pexels. Photo credit: Jack Sparrow.