Loyalty programmes are no longer standing still. They’re evolving rapidly in response to changing consumer expectations, increasing commercial pressure, and the growing sophistication of data-driven marketing. 

What used to be simple, static rewards are being replaced by more targeted, conditional, and sometimes friction‑filled experiences. Over just the last week, our team has spotted several revealing changes that illustrate where loyalty is heading. 

Boots: From Blanket Discounts to Active Engagement 

Boots has long offered a straightforward incentive: 10% off Boots own-brand products for Advantage Card holders. Recently, that’s changed. 

The flat discount is being replaced with additional, targeted offers that must be activated through the Boots app. 

What This Means for Consumers 

You no longer receive rewards simply for “doing business” with the brand. Instead: 

• You must engage with the loyalty ecosystem 
• You must actively unlock value 
• Rewards are conditional on behaviour, not presence 

This shift clearly signals that loyalty is now as much about data capture and engagement as it is about giving something back. 

Airtime Rewards: Passive Loyalty Is Disappearing 

Airtime Rewards has also quietly introduced a new requirement: 

• Users must log in at least once every 30 days 
• Failure to do so results in cashback being lost 

This is another example of what can be called controlled friction, small barriers deliberately introduced to: 

• Encourage regular engagement 
• Reduce unused rewards (“breakage”) 
• Improve app usage metrics 

Loyalty is no longer something that simply runs in the background. 

Sports Direct/Frasers Group: A Full Reset 

The most dramatic shift is coming from Frasers Group. 

What’s Changing 

• The entire existing loyalty scheme will be scrapped in 2026 
• Customers will migrate into the Frasers Plus ecosystem 

The Promise 

• Better rewards 
• More personalised offers 
• A more unified group-wide experience 

This represents a clean break from traditional points-based loyalty in favour of an ecosystem approach that prioritises personalisation and cross-brand value. 

Morrisons More Card: Digital Data, Physical Rewards 

Morrisons has taken a notably different path. 

What Changed 

• Paper coupons have been reintroduced at tills and via post 

• Behind the scenes, offers are still powered by real-time transaction data 

• Rewards remain personalised based on basket behaviour 

Why This Matters 

• Morrisons is proving that personalisation doesn’t have to be digital-only. 

This strategy recognises that a meaningful segment of shoppers – often older or lower‑tech – respond better to visible, physical value than app-only rewards. 

A Team Observation: “This Actually Really Annoys Me” 

One comment from the team captures a broader tension many consumers feel: 

“This really annoys me - Tesco did something similar years ago. 
I’ve heard it’s used to clear stock or push alternatives rather than discount must‑have best sellers. 
It feels like a shift from ‘free’ to ‘guided’ spending.” 

This frustration isn’t accidental. Many programmes are now designed to: 

• Encourage trial of slower‑moving or alternative products 
• Avoid discounting best sellers 
• Guide customer behaviour rather than reward it indiscriminately 

The emotional response is real and brands are betting that perceived value will outweigh perceived restriction. 

Is This the End of Blanket Discounts? 

Then 

• “10% off everything” 

Now 

• “Relevant value at the right time” 

Why the Shift? 

Blanket discounts: 

• Erode margin 
• Reward low-value or inevitable behaviour 

Personalised rewards: 

• Drive incremental spend 
• Feel more meaningful to the customer 
• Are easier to fund through suppliers 

Boots’ evolution makes this clear: loyalty programmes are now data engines first, reward mechanisms second. 

This enables: 

• Better targeting 
• Supplier-funded promotions 
• Retail media monetisation 

The Rise of Controlled Friction 

We’re seeing more deliberate hurdles built into loyalty mechanics, including: 

• Same-day voucher expiry 
• App activation requirements 
• Time-limited access 

These are not mistakes. They are designed to: 

• Encourage immediate purchase 
• Reduce unused rewards 
• Increase digital adoption 

Segmentation Over Simplicity 

Modern loyalty programmes are becoming: 

• Less simple 
• More complex 
• Potentially more valuable – when executed well 

Boots, for example, is clearly prioritising: 

• Parents 
• Older shoppers 
• High-frequency customers 

The trade-off is simplicity for relevance. 

Here are Stream's Four Practical Takeaways for Strategy Teams 

If you’re building or repositioning a loyalty programme, consider the following: 

1. Audit Your Existing Perks 

• Which blanket benefits truly drive incremental behaviour? 
• Which simply reward customers who would buy anyway? 

2. Introduce Smarter Mechanics 

• Behaviour-triggered rewards 
• Lifecycle-based segmentation 

3. Think Beyond App-Only Engagement 

• Digital + physical hybrids 
• Visible value alongside data-driven logic 

4. Explore Broader Ecosystems 

• Partner rewards 
• Group-wide value propositions 

The rules of loyalty are changing. The brands that win will be those that balance commercial discipline, customer perception, and genuine value creation, without forgetting how their customers actually feel.