Loyalty schemes need to do more, claims YouGov poll

LONDON - Despite 86% of the population using retail loyalty cards on a regular basis, 50% of shoppers do not think it is worthwhile collecting points, according to a new survey.

Loyalty schemes: need to create greater customer loyalty
Loyalty schemes: need to create greater customer loyalty

The report, from YouGov SixthSense, also found that 93% of consumers would continue to shop somewhere, even if the retailer scrapped its loyalty scheme. Only 17% of respondents choose where to shop based on their participation in loyalty card schemes.

Just over half (52%) of participants in schemes preferred to convert points into a money-off discount at the till, with 19% of respondents saving up points to earn a reward. Only 10% of card users collected points but rarely, if ever, redeemed them, according to SixthSense.

The top loyalty schemes, in terms of usage, show that consumers participated in more that one scheme, with Tesco Clubcard being used by 66% of those surveyed, Nectar by 55%, and the Boots Advantage Card by 48%.

Commenting on the results, James McCoy, research director for YouGov SixthSense said: "Loyalty schemes need to do more to create customer loyalty. The schemes are best suited to retailers that are used frequently or where loyalty cards can be used in multiple stores, so that points and rewards accumulate at a fast enough rate to keep people interested."

He added: "Participation is highest among the better off, indicating that because they spend more, they accumulate points faster and get more rewards, making participation worthwhile. Retailers need to do more to ensure loyalty schemes engage with all types of customer."

The online survey was carried out between 18 and 20 February, and 1,469 British adults took part. 

Earlier this year Sainsbury's claimed that it had the biggest loyalty card scheme through Nectar with more people than either of its two main rivals, Tesco Clubcard and Boots Advantage card. It now has around 16.8 million people using the scheme, which spans 14 major partners and more than 400 online retailers.

 

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