Shoppers want pricing, not personalisation in apps

Apadmi has published research on consumer attitudes to mobile loyalty apps, highlighting a gap between what shoppers say they want and what brands believe matters most.

The study surveyed more than 1,000 consumers in the UK, Poland, Germany and the Netherlands, alongside 50 global retailers. It found that 32% of shoppers said too many notifications were their biggest frustration when using loyalty apps.

Other complaints centred on value and usability. Some 26% said the rewards offered were not worthwhile, while 21% cited poor in-store connectivity as a key annoyance.

The findings suggest pricing and rewards remain stronger drivers of engagement than personalisation. Asked why they would download an app for the first time, 30% of respondents chose exclusive pricing, 28% pointed to first-purchase discounts and 16% selected loyalty schemes.

Easy checkout and improved security ranked lower. Only 12% said easy checkout was their main reason to download an app, while 7% chose security.

Mismatch over priorities

The report also identified a clear mismatch between brand expectations and consumer preferences. While 78% of brands believed customers wanted more personalisation, only 13% of shoppers said it was the most important factor in loyalty to a brand.

This gap comes as many retailers continue to invest in app-based loyalty offers and customer relationship management tools. Yet only 11% of brands said their mobile loyalty scheme and CRM programme were completely aligned, while 54% said more work was needed.

A further 39% of brands said their app was not working as effectively as they would like. The figures suggest many businesses are still trying to connect loyalty activity with broader customer data and app performance.

Download decisions were also shaped by practical concerns. The biggest deterrent to downloading a retail app was not shopping with that brand often enough, cited by 46% of respondents, followed by data privacy concerns at 29% and lack of storage space on devices at 13%.

How shoppers use apps

Consumers appear to use loyalty apps selectively rather than in constant response to brand prompts. Nearly half, or 47%, said they were most likely to check an app before shopping, while 26% said they actively checked points and rewards.

Only 9% said they looked whenever they received a message from the brand. That finding aligns with the result on notifications, suggesting frequent alerts may do little to drive regular engagement.

The survey also found loyalty participation remains limited for most consumers. Around 70% of shoppers said they were members of three or fewer loyalty schemes, rising to 84% among those aged 18 to 24.

By contrast, those aged 35 to 44 emerged as the heaviest users of loyalty apps. In that group, 41% said they belonged to four or more loyalty programmes.

Retail leads rankings

Retail and grocery brands dominated the ranking of favourite loyalty apps in Europe. Lidl came top overall, with 11% of respondents naming it as their preferred app.

It was followed by Payback on 8%, Tesco on 6%, Biedronka on 6% and Nectar on 4%. Travel, financial services, utilities and healthcare brands trailed retail in the broader top 10.

The results suggest frequent, routine shopping may give supermarkets and retailers an advantage in mobile loyalty. Regular visits create more opportunities for shoppers to use an app for prices, points and discounts rather than occasional transactions.

Marcus Hadfield, Chief Strategy Officer at Apadmi, commented on the broader picture for brands trying to strengthen retention through mobile channels.

He said: "In the face of a turbulent economic backdrop and the swift shift towards agentic AI, customer loyalty and retention is more important than ever. There are clearly some barriers to overcome, but there are also opportunities for brands to learn from the frontrunners and increase their market share.

"Our research shows that the brands pulling ahead aren't necessarily those with the biggest budgets or the most sophisticated technology. They are the ones that understand their customers well enough to build experiences that earn a permanent place on both their home screens and in their routines."