74% of Loyalty Members Quiet Quit Within Two Months, Study Finds

Loyalty Programs Face a Quiet Quitting Crisis

A new study has exposed a stark disconnect between how travel and retail brands measure loyalty program success and what members actually value. According to the research, 74% of loyalty program members effectively 'quiet quit'—disengaging from the program or reducing activity—within two months of joining or after a single negative interaction. Meanwhile, 83% of brand executives believe their programs make members feel valued, yet only 56% of members agree.

The findings challenge the conventional metrics that loyalty programs rely on, such as enrollment numbers, points earned, and redemption rates. The report points to a phenomenon where members use points defensively—cashing them out for everyday necessities rather than aspirational rewards—which brands often misinterpret as loyalty.

The Starbucks Example: Popular Reward ≠ Best Value

A prime example cited is Starbucks' rewards program. The company's most popular reward is the free birthday treat, which also happens to be its least valuable. This pattern suggests that members are not necessarily engaging with the program out of brand affinity but rather taking advantage of low-effort, high-perceived-value perks. When programs focus on these 'defensive' redemptions, they may be celebrating the wrong metrics—measuring activity rather than true emotional engagement.

What This Means for Travelers

For travelers enrolled in airline and hotel loyalty programs, the study carries a clear warning: don't assume a program's stated engagement metrics benefit you. Programs may tout high redemption rates without distinguishing between meaningful rewards and 'cash-out' behavior. Travelers should evaluate programs based on whether their rewards align with personal travel goals—such as free flights or upgrades—rather than just how many points they accumulate.

The quiet quitting phenomenon also underscores the importance of flexibility. If a program makes it difficult to redeem for desirable awards, introduces devaluations, or creates blackout dates, members are likely to disengage quickly. Savvy travelers should focus on programs that offer clear, attainable value and avoid those that celebrate participation over satisfaction.

Industry Implications: Brands Must Rethink Metrics

Loyalty programs are a multi-billion-dollar industry for airlines, hotels, and credit cards. The study suggests that many brands are at risk of misallocating resources—investing in engagement tactics that don't foster genuine loyalty. For instance, offering bonus points for frequent small purchases may drive short-term activity but does little to prevent quiet quitting. Instead, brands should focus on surprising members with valuable, unexpected rewards and ensuring that the redemption process is seamless and transparent.

As the travel industry continues to recover, loyalty programs remain a key differentiator. But this research indicates that programs need a fundamental shift from encouraging transactional behavior to building emotional connections. For now, the burden falls on travelers to be discerning about where they invest their loyalty.