Why Customers Abandon Loyalty Programs

Loyalty programs are everywhere. Almost every brand has one. But here’s the catch: most customers join, only to lose interest and stop engaging after a while.

A Bond report shows that customers enroll in an average of 15 loyalty programs, yet Accenture found that 78% of them become inactive within three years. That’s a big gap between sign-ups and actual engagement.

So, why do customers abandon loyalty programs and what can brands do differently to win them back?

Why Customers Join Loyalty Program in the First Place

Before we talk about why they leave, let’s look at why customers join in the first place:

• • • Simplicity – It’s quick to sign up and easy to understand.
    • Instant value – They can earn points or getting instant reward without jumping through hoops.
    • Easy redemption – Rewards can actually be redeemed without hassle.
    • Relevant perks – Rewards feel personal and relevant, not generic.
    • Connection – They feel like the brand “sees” them, whether through a birthday gift or special treatment.

In short: people join loyalty programs that respect their time and give them real value.

Reasons Why Customers Abandon Loyalty Program

If customers don’t stick around, it usually comes down to one (or more) of these reasons:

1. Clunky experiences

A buggy app, endless forms, or confusing menus will frustrate customers. They expect smooth, mobile-first experiences that don’t waste their time.

2. Rewards that don’t excite

Generic discounts or “rewards” that take forever to earn don’t feel worth it. Customers want perks that are relevant to their lifestyle and easy to access.

3. Too much effort, too little gain

If it takes 20 purchases just to get a free drink, customers will drop out. Reward should feel achievable, not exhausting.

4. Poor value exchange

Spending big but earning tiny points? That math doesn’t add up for customers. They’ll feel cheated and abandon the program.

5. No emotional hook

When programs are purely transactional, customers won’t stick around. Loyalty needs an emotional layer that makes people feel valued, not just “rewarded.”

How to Prevent Customers from Leaving Your Loyalty Program?

The good news? Customer loyalty program isn’t dead. It just requires a smarter approach. Here’s how to reset your program:

• • • Audit your current setup
      Look at your earning rules, reward catalog, and redemption flow. Are they simple enough? Are the rewards aligned with what customers actually want from your brand?
    • Keep it effortless
      From registration to earning to redeeming, every step should feel frictionless. Don’t burden customers with complicated forms or confusing processes.
    • Offer Rewards People Actually Want
      Mix everyday value (e-wallet top-ups, discounts, vouchers) with aspirational perks (exclusive events, VIP access). This balance keeps different customer segments engaged.
    • Stay connected
      Don’t just reward transactions; reward engagement too. Interactions on social media, referrals, or participation in challenges can all be part of your loyalty strategy.

• • • Upgrade your loyalty platform
      If your current loyalty app feels clunky, has low downloads, or struggles to keep users active, it might be time to rethink the channel. One option many brands are exploring is migrating to WhatsApp.

Why WhatsApp? Because it’s already on everyone’s phone. Customers don’t need to download a new app or remember another password. With a WhatsApp-based loyalty program, they can:

• • • Check points, rewards, and progress instantly through chat
    • Redeem perks in just a few taps
    • Receive timely reminders, personalized offers, and updates in the same place they already spend hours daily

For brands, WhatsApp loyalty is not only more convenient but also more engaging. It removes adoption barriers, boosts traction, and keeps your program visible in customers’ everyday lives.

Wrap up!

Loyalty programs are a powerful way to turn your customers into long-term supporters. But they only work if people stay engaged. Because if your program doesn’t feel right, members can quickly lose interest and drop off.

Many brands face this struggle; keeping a program simple, rewarding, and relevant isn’t always easy. If you’re looking for ways to refresh or upgrade your loyalty approach, Tada can be a partner to explore with. We’ve helped businesses across industries design programs that are easier to manage and more valuable for their members.

Curious how it might look for your brand? Request a demo and our team will walk you through it.