2026 EY Loyalty Study: the gap between performance and experience

Loyalty programs are delivering results, but customers may not be experiencing that value in the same way.

The 2026 EY Loyalty Market Study finds that loyalty programs are delivering results, at least by the usual measures. What’s less clear is whether customers are experiencing that value in the same way.

Now in its third edition, the study shows that this gap has become more visible since last year. Performance remains strong across metrics like enrollment and ROI, but consumer signals are starting to shift. People are engaging with fewer programs and checking rewards less often. They’re also showing more neutral sentiment even when programs are working as intended.

At the same time, programs themselves are becoming more complex and more technology driven. As features and partnerships expand, and as AI capabilities ramp up, value can feel harder to track and slower to show up in the moments that matter.

This year’s study looks at where performance and experience are starting to diverge, and how that plays out across different groups of customers who define value in very different ways.

When strong performance doesn’t always translate to strong loyalty

Loyalty programs continue to perform well by many traditional business measures. But underneath that, early signs of fragility are starting to show. Churn is increasing, and emotional connection is not as strong or consistent as it once was.

One of the clearest drivers is how value shows up day to day. As programs become more layered, consumers say rewards can feel slower and harder to understand. They’re checking their balances less frequently, and frustrations tied to delayed payoff are still showing up.

As customer loyalty evolves, the challenge is less about adding more and more about making value easier to see and use. That means understanding how different customers experience loyalty today, and where programs are meeting expectations or falling short.

Compared with last year, those differences between customers are becoming more pronounced. Expectations are not moving in a single direction, and the same program can feel intuitive to one group and frustrating to another.

This year’s study takes a closer look at how these patterns show up across distinct groups of customers. Some place more weight on access and experiences; others prioritize simplicity and time savings; and others focus on clear, immediate financial value. As programs become more advanced, the need to design for those differences is becoming harder to ignore.