UK Loyalty Movement Report: QSR

Introduction‍

In our previous report, Redefining Customer Loyalty, Cardlytics defined loyalty as a consumer’s preference for a merchant over its competitors. We analyzed billions in spending across six industries to measure customer loyalty and spending patterns with both loyal and non-loyal customers.

But customer behavior isn’t fixed—customers shift between loyalty segments over time. Understanding these shifts helps identify churn and informs strategies to nurture relationships and move customers to higher loyalty segments. In this Report, we dive into customer behavior in the QSR category to better understand engagement over time by analyzing more than £5.8bn in consumer spend behavior.*

Findings: loyalty is fluid, not fixed 

We looked into purchase data at all QSRs in the UK over the last 8 quarters (Q1-23 through Q4-24) on a quarter by quarter basis to see whether even the “most loyal” customers showed changes in their purchase behavior. 

‍QSR Loyalty Movement

‍Overall, quarter over quarter, 36% of customers tend to remain in their existing segments and 26% increase or decrease their loyalty to a merchant, showing that QSR customers tend to be more promiscuous than other industries. Also, there is much more extensive customer loyalty movement within the “not loyal” segments. 

‍Findings: segment movement 

Diving deeper into the individual segments tells us:

• Loyal customers are the most stable, with 58% staying Loyal.
• Prefer customers also show strong retention — 52% remain in that segment.
• Tied customers are the most fluid — only 10% stay Tied, while 58% shift into Loyal or Prefer.
• Churn risk is highest for Prefer customers, with 35% lapsing — nearly 2x higher than Loyal customers (20%).

‍Segment movement
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Customer movement is happening across all segments, but the Tied group shows the highest churn – only 10% remain Tied, while a combined 58% shift into either Loyal (32%) or Prefer (26%). This volatility signals an opportunity to convert mid-loyalty shoppers with targeted interventions.

QSR Leaky Bucket 

QSR brands are losing customers faster than they are acquiring them – with Lapsed customers (22.3%) outpacing New customers (15.9%). This signals a need to strengthen retention strategies to prevent long-term erosion of customer loyalty.

Takeaways: It’s more costly to acquire or re-acquire customers than to keep existing ones engaged. 

Our analysis shows that 22% of QSR customers have lapsed, outpacing the 15.9% of new customers being acquired. Brands are at risk of net customer loss unless they prioritise loyalty-building efforts.

Our segment movement data also reveals that “Tied” customers are the most fluid, with 90% shifting into other behaviours — with both gains and losses. In contrast, Loyal customers remain relatively stable, and Prefer customers show moderate retention.

To protect and grow market share, marketers must go beyond acquisition. Nurturing relationships and strengthening loyalty can have a direct impact on retention and revenue. 

To foster loyalty, consider these recommendations:

• Deploy an “always-on” strategy to stay connected with customers, regardless of purchase frequency.
• Continuously refine customer segments and tailor reward structures to reflect shifting behaviours.
• Launch targeted campaigns focused on converting fluid segments (like Tied and Prefer) into Loyal customers.