A new survey from IAG Loyalty shows consumers want more flexibility and simplicity in their loyalty programmes.....

New research from IAG Loyalty, the home of Avios, highlights a significant shift in consumer expectations around loyalty programmes. The findings, based on a survey of 2,000 UK consumers and over 400 business leaders in retail and adjacent industries, indicate that both consumers and businesses recognise the value of evolving loyalty ecosystems. 

According to the research, 67% of consumers prefer consolidated loyalty programmes, allowing them to pool points from multiple brands and services for easier redemption. Flexibility was another key demand, with 74% of consumers wanting more options for collecting points and 76% seeking greater freedom in how they spend them. Additionally, 40% of respondents said they would be more loyal to brands offering consolidated currencies, a figure that rises to 48% among Gen Z consumers. 

Despite the widespread use of loyalty programmes, with 65% of consumers being members of at least three programmes, many find the complexity off-putting. In fact, 36% of respondents said the complexity of current loyalty programmes discouraged them from engaging fully. On average, consumers report losing £28 annually in unused loyalty points, often due to expiration or the perceived hassle of redemption. 

Travel-related rewards remain the most popular, with 30% of consumers ranking discounts on holidays and travel as their preferred reward, ahead of other incentives such as experiences (21%), upgrades (14%) or car hire (3%). This preference aligns with consumer spending behaviour, as 76% of respondents said they are willing to spend more on their weekly shopping if it helps them accumulate points for travel-related rewards. 

Additional findings from the research showed that 71% of business leaders believe that loyalty programmes will undergo significant changes over the next two years. Of these, 65% predict an increase in 'loyalty webs', where multiple brands collaborate, compared

 to 34% who foresee a rise in more isolated 'loyalty loops.' Despite this anticipation, many business leaders may be underestimating the growing consumer preference for consolidated loyalty programmes. 

As these insights demonstrate, both consumers and businesses recognise the need for more streamlined and effective loyalty programmes. IAG Loyalty is committed to addressing these demands through innovative solutions that enhance consumer experience and maximise the benefits of Avios. 

“As more businesses recognise the importance of loyalty in driving customer engagement, we're seeing an influx of loyalty programs,” said Adam Daniels, IAG Loyalty’s CEO, “consolidating these into a unified currency makes sense, as it simplifies the process for consumers who can't realistically manage numerous different programs. At IAG Loyalty, we are proud to be doing this already with Avios, in partnership with IAG’s airlines British Airways, Iberia, Aer Lingus and Vueling, as well as oneworld airline partners Qatar Airways and Finnair, allowing our customers to earn and redeem points across a wide network of travel and retail partners, providing them with greater flexibility and value.”