Over £5bn worth of unclaimed rewards on loyalty cards
Average person has at least one card they have never used
There are £5.2bn worth of unused loyalty card points on UK cards, according to a new report by the Subway fast food chain.
The survey of 3,000 people found that the average UK consumer has three loyalty cards but no idea what the points mean or what they are entitled to.
Despite this, shoppers have been adding to each of their cards for at least five years.
“It’s a missed opportunity if consumers don’t redeem their points or look out for special offers and promotions that can provide incremental opportunities to boost their rewards,” said Alex Cacouris, head of marketing for Subway.
The average person has at least one loyalty card which they have never used, while 18% have old loyalty cards in their wallet which they started using but stopped because they did not know what they were doing.
But despite being relatively ignorant about the cards they are using, the average UK customer has been collecting points for up to five years.
He added: “Many just don’t understand what their points entitle them to. Loyalty cards can provide savvy consumers with extra value in the medium to long term.”
Most of the 3,000 people questioned estimated their average card entitles them to around £36.57 of goods – which means a total of £109.71 to spend. Subway published the survey as it launched its own loyalty card.
Three quarters of people thought loyalty cards were a good way of saving money – and 61% said this was the main reason they got their cards.
The survey’s other findings included:
– 52% of women are tempted by the lure of loyalty card rewards (33% of men).
– 36% of people do not know what their loyalty cards entitled them to, or how to convert their points.
– 33% of people do not use their loyalty card because they forget to carry them around.
– 25% of people cannot be bothered to work out what the points mean.
– 20% of people signed up for a loyalty card without knowing how to use them.
– 17% of men would never redeem their points even though they know they are accumulating them.
“Loyalty Schemes Lacking a Clear Marketing Plan” – See Comment by Anamaria Chiuzan of The Logic Group