Why Customers Quietly Quit Rewards Programs, and What 2026 Research Says Keeps Them

Most small-business owners who have tried a punch card or points program know the pattern. Sign-ups are strong for a few weeks, then the cards stay in wallets and the points go untouched. Two major 2026 studies help explain why, and the fixes are simpler than you might expect.

The good news: customers still want rewards

Interest in loyalty programs is growing. In Antavo's Global Customer Loyalty Report 2026, based on a survey of 10,000 loyalty program members worldwide, 43.2% said they are more likely to join a program now than they were a year ago, and 65.9% said using a loyalty program is now part of their lives. Savings are still the top reason to join, cited by 70.8% of consumers, according to Antavo's launch announcement (Feb. 3, 2026).

The 2026 Bond Loyalty Report, produced with Visa and based on 20,591 U.S. loyalty members surveyed between January and March 2026, is even more direct: 85% of consumers are more likely to keep doing business with a brand that has a loyalty program, and 73% spend more because of it.

So the problem usually isn't getting people to join. It's keeping them interested after they do.

The bad news: here's why they drift away

Antavo asked consumers what disappoints them about loyalty programs. The top answers (full report):

• 49.1%: it takes too long to earn rewards
• 41.1%: rewards expire before they can use them
• 38.9%: the rewards aren't attractive
• 33.2%: not enough discounts
• 17.6%: the program rules are unclear
• 16.0%: sign-up is long or complicated

Antavo's own platform data shows the cost of that frustration. In 2025, 27% of the points customers earned were left unspent. The report also found that, while people join for clear money-saving reasons, a significant share of members slip into inactivity within two months.

There's also a perception gap. According to the same report, 82.6% of marketers believe their members feel valued, but only 56.2% of consumers agree.

What this means for your business

Each of those complaints points to a fix you control.

1. Put the first reward within reach. If nearly half of customers say rewards take too long, look at how many visits your first reward needs. If a typical customer can't earn something by their second or third visit, the goal may feel out of reach before the habit forms. A small early reward followed by bigger ones later keeps people moving.

2. Don't let active customers lose what they earned. Expiring rewards are the second-biggest complaint. If you need an expiration policy to manage costs, consider one that only applies to people who have stopped visiting, so a regular who comes in every week never loses progress.

3. Offer rewards people actually want. "Unattractive rewards" made the top three. The best rewards usually cost you little and feel generous to the customer: a free add-on, an upgrade, or first access to something new. Bond found that "Access," such as first looks and front-of-the-line perks, was the top loyalty driver in both 2025 and 2026.

4. Explain the whole program in one sentence. If the rules need a paragraph, some customers will give up. "Every visit earns points, and points become rewards" is easy for your staff to say at the counter and easy for customers to remember.

5. Make joining take seconds. One in six consumers named a lengthy sign-up as a frustration. Ask for the minimum at the register, such as a phone number, and collect anything else later.

6. Recognize people, don't just reward them. The Bond report found that customers increasingly value how brands recognize them, not only what they give away. A thank-you message or a "welcome back" when someone hits a milestone closes the gap between "we value you" and "I feel valued."

The bottom line

Customers want loyalty programs more than ever. They leave the ones that feel slow, confusing or forgettable. Fixing those three problems will do more for your repeat business than any one-time promotion.

If you're building or rethinking a program, Touch Won is a customer loyalty rewards program designed for many kinds of businesses, with simplicity in mind for owners and customers alike.