Supermarket giant boosts loyalty-linked sales from 47% to 65% in just 18 months

In 2023, leading UK supermarket chain Morrisons set out to revolutionise its loyalty strategy to deliver greater value to customers. To achieve this, the retailer needed to overcome significant technological challenges, modernise its loyalty infrastructure and future-proof its offering. Fast forward to 2026 and the program, powered by Eagle Eye AIR, is an award winning success story.

We take a look at behind the scenes of the rollout, plus the implications and lessons for other supermarkets across other global markets like APAC.

The Challenge

Morrisons had relied on a custom-built, in-house loyalty and promotions solution for many years. However, to keep pace with competitors and meet evolving customer expectations for real-time loyalty, discounts and personalisation, the business recognised the need for change.

Key challenges included:

• Limited customer engagement with loyalty and promotions due to technology constraints restricting the number and types of promotions available.

• Low perceived value and competitive disadvantage, with new offers only released every two weeks.

• Operational inefficiencies, with employees undertaking repetitive manual tasks to set up offers, increasing the risk of errors.

• Customer complaints and disengagement due to clunky experiences and inconsistencies across channels.

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The Solution

In 2023, Morrisons transitioned to Eagle Eye AIR, going live just 12 weeks after contract signature. This enabled the relaunch of its modernised, data-driven loyalty programme, Morrisons More Card, introducing a wide range of real-time loyalty experiences through Eagle Eye’s direct integration with point-of-sale (POS) systems.

Key loyalty features included:

• More Card Points: Earn five points per product.

• More Card Fivers: Redeem 5,000 points for a £5 reward, digitally or in print.

• My Points Boosters: AI-driven, gamified multi-step offers designed to encourage incremental spending.

• More Card Prices: Exclusive prices for loyalty members.

• Personalised Coupons and Offers: Tailored rewards based on shopping behaviour.

• Basket Bonus: Surprise rewards for customers.

• More Ways to Earn: Earn points through Amazon, Deliveroo and other partners.

• More Card Stamps: Collect stamps for every £10 spent and exchange them for prizes.

• Charity Donations: Donate loyalty points to charity.

The Results

Switching to Eagle Eye AIR enabled Morrisons to overcome legacy platform limitations, simplify internal operations and deliver more efficient, cost-effective marketing. Most importantly, customers responded positively to the revamped programme.

Key results included:

• Loyalty-linked sales increased from 47% to 65% within 18 months, demonstrating a significant increase in customer engagement with the programme.

• Nine new personalised and gamified loyalty features were introduced.

• Growth in loyalty transactions, active customers and new sign-ups, reflecting stronger programme participation.

Key Drivers of Success

• Omnichannel POS integration: Loyalty is now central to Morrisons’ strategy, with real-time execution across customer touchpoints.

• Personalisation: AI-driven offers such as My Points Boosters delivered strong ROI and increased customer engagement.

• Seamless, tangible rewards: Simple earning and redemption experiences improved perceived value and redemption rates.

• Gamification: Features such as Basket Bonus and My Points Boosters introduced excitement and encouraged greater programme participation.

• Ongoing innovation: New features, including More Card Stamps, helped keep the programme fresh and relevant.

• Expanded earning channels: Integrations with Amazon, Deliveroo and other partners extended the programme’s reach beyond Morrisons-owned channels.

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Industry Recognition

The strength of Morrisons’ loyalty transformation was recognised at the Retail Systems Awards 2026, where the retailer won Customer Loyalty Programme of the Year. The award highlights Morrisons’ continued commitment to rewarding and retaining customers through innovative loyalty experiences.

Implications for retailers across the APAC region

For the wider APAC region, Aaron Crowe, Head of Revenue, APAC at  Eagle Eye says one of the most relevant lessons from Morrisons is that successful loyalty programs need to give customers multiple reasons to identify themselves and engage – not simply points for purchases. Member pricing, personalised challenges, partner rewards, gamification and surprise-and-delight mechanics all create different opportunities to demonstrate value while generating richer first-party data.”

“That is particularly relevant in Asia’s highly digital and competitive retail markets, where customer expectations are evolving quickly. The Morrisons example shows that modern loyalty is really an ongoing value exchange: the more useful and engaging the experience becomes for the customer, the more retailers can learn about them and use those insights to make future interactions even more relevant,” he explains.

According to Jonathan Reeve, ANZ Director at Eagle Eye, The Morrisons transformation offers an important lesson for retailers across Australia and New Zealand: a loyalty program can only move as fast as the technology underpinning it. Consumers increasingly expect value that is immediate, relevant and easy to access, but legacy systems can make it difficult for retailers to deliver that experience at scale.

“Morrisons shows what becomes possible when loyalty is connected to the point of sale in real time – from member pricing and personalised offers to gamified challenges and surprise rewards. The increase in loyalty-linked sales from 47% to 65% demonstrates that when you make loyalty more relevant and rewarding, customers respond. For ANZ retailers, the opportunity is to build the right loyalty architecture now, so they can keep evolving the proposition rather than being constrained by technology,” he said.

Eagle Eye is an AI-powered loyalty and promotions platform, enabling the world’s leading retailers, grocers, hospitality and travel brands to earn lasting customer loyalty through real-time personalised engagement. Our platform embeds AI natively, combining enterprise-grade loyalty and promotions capabilities with purpose-built intelligence to deliver 1:1 personalisation to millions of customers globally.

Our growing international customer base includes Loblaw, Giant Eagle, Wakefern, Kwik Trip, Petco, Tesco, Morrisons, JD Sports, Carrefour and the Woolworths Group. Each week, more than 1.8 billion personalised offers are seamlessly executed via our platform, and over 813 million loyalty member wallets are managed worldwide.

API-based and cloud-native, Eagle Eye’s enterprise-grade technology is fully certified by the MACH Alliance and has received recognition from leading industry bodies, including Gartner, Forrester, IDC and QKS. Visit www.eagleeye.com to learn more.