Morrisons bringing back physical coupons might sound like a retro move, but it says something important about where UK retail finds itself, writes Heidi Temple-Stephens, strategy partner at RAPP UK.

In a cost-of-living crisis, simple, tangible value really matters, and a paper voucher at the till is visible proof that the brand is on your side.

At the same time, Tesco and Boots are supporting something far more radical – using loyalty data to help flag early signs of cancer and prompt people to seek medical advice sooner. That is a very different kind of loyalty benefit – still about using data to drive behaviour change, but the outcome is not just a bigger basket or an extra visit. It could be a longer life.

Put those two stories together and we find ourselves at a fascinating crossroads for retail loyalty in the UK. Turn left for a rollback to highly visible, old-school discount mechanics. Turn right for a glimpse of loyalty as AI-powered infrastructure for real societal impact.

From points to personalisation – and beyond

For years, UK loyalty was largely transactional. Clubcard, Nectar and Advantage Card taught shoppers to collect points and vouchers and enjoy being rewarded for their regular shop. Morrisons bringing back physical coupons plays directly into that tradition.

Then came the personalisation wave, as data science turned loyalty schemes into engines for targeted promotions. From Clubcard and Nectar member-only prices to app-only offers and gamified bonuses, personalised value has become a core battleground for relevance, margin and share of the weekly basket.

Now a third phase is emerging, where that same data is being used to play a deeper role in customers’ lives. An early example is the recent announcement that Imperial College London is launching a major study, exploring how Tesco Clubcard and Boots Advantage Card data could help to flag the early signs of disease. It’s built on the hypothesis that repeat purchases of certain medications or remedies over time could be a signal that something is not quite right.

Crucially, the proposed outcome is not diagnosis; it’s a nudge to speak to a pharmacist or GP. If handled sensitively and transparently in partnership with health professionals, this use of loyalty data has the potential to drive earlier medical interventions for a variety of cancers and reduce pressure on the NHS.

What responsible use really looks like

All of this only works if the use of loyalty data is responsible, proportionate and clearly in the shopper’s interests, because the line between helpful and creepily invasive is wafer thin. So, here are a few principles that should guide UK retailers as we move into this brave new world.

1. Transparency and consent

People need to know, in plain language, what is happening with their data and why. Health-related uses in particular should be explicitly opt-in and easy to opt out of.

2. Direct benefit to the individual

Societal impact is important, but for loyalty it has to be rooted in tangible personal benefit – better value, better health, less stress, more convenience. If data is being used to support public services, retailers need to explain how that ultimately helps the customer too.

3. Strong internal guardrails

Just because you can, doesn’t mean you should. Retailers need clear policies on what’s acceptable, who can access sensitive insights and how interventions are delivered. An internal ethics lens is as important as a legal one.

4. Partnerships with trusted institutions

Where loyalty data can contribute to health or social outcomes, retailers should not go it alone. Working closely with the NHS, charities and local authorities helps ensure that interventions are appropriate, proportionate and credible.

How else could this approach be deployed?

For retailers and agencies alike, this shift opens up a tantalising question: how else could deeper loyalty data analysis deliver societal impact, whilst also creating feelings of support and empowerment for customers? Two areas feel like immediate opportunities:

1. Supporting everyday value

The cost-of-living squeeze has forced millions of UK households into constant trade-offs. Loyalty data can reveal when shoppers are switching into cheaper brands, dropping out of categories or chasing promotions in a way that suggests real financial strain.

Used well, that insight can power more humane responses: tailored discounts on essentials or price freezes on core baskets, to help customers feel more in control of their budget and less anxious about the weekly shop.

2. Nudging healthier and more sustainable choices

Loyalty data is uniquely good at tracking behaviour over time. That makes it a powerful tool for nudging small and sustainable shifts in diet and lifestyle, and for encouraging lower-impact choices that feel achievable and meaningful.

Retailers could use it to reward healthier baskets in a non-judgy way, making better choices more prominent, or incentivising eco options with meaningful emotional value.

Of course, none of this replaces the basics – in a value-obsessed market, if your prices are missing the mark, no amount of life or planet-saving purpose will save you. That is why moves like Morrisons’ coupons still resonate: they hit a very real need.

But retailers who choose the more purposeful path – and do so carefully, transparently and with consent – will not just have more detailed customer profiles. They will have something far harder to copy: genuine, emotional loyalty that transforms data from a sales tool into a social asset.

In a world where anyone can launch an app, print a coupon or personalise an offer, the real competitive edge is no longer just smarter promotions. It is proving that when customers hand over their data, they get something meaningful in return – not just points, but a retailer that is actively on their side.

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