
New research shows spin-wheel loyalty programs drive engagement during active rewards. They trigger sharp customer drop-offs when incentives pause. The cost may outweigh the benefit.
A 2025 study in the Italian Journal of Marketing documented a dependency problem at the heart of gamified retail. Researchers found that 75% of UK fast-food restaurants run loyalty programs. Of those, 93% include gamified elements like spin wheels and progress bars, the study said.
The study tracked user behavior while rewards were active and after they paused. Engagement surged during the reward period. It dropped sharply once the incentives stopped, the researchers said. The pattern creates a tension for retailers. Short-term participation rises. The customer base risks exhaustion.
The cost of maintaining these programs is significant. Fast-food chains invest in app development, prize inventory, and data infrastructure. If the engagement is not sustainable, the return on that investment may be negative. The study did not offer a specific design fix. The data shows a clear challenge: the current model may produce a costly cycle of acquisition and churn.
Investors in publicly traded restaurant chains should watch for changes in customer retention metrics and loyalty program participation rates. The findings come as retailers increasingly invest in digital loyalty features. The study was published in the Italian Journal of Marketing in 2025.
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