Supermarkets “key” to reward schemes
Supermarket shopping is the key to high street loyalty programmes with 84% of consumers collecting the majority of their rewards from their grocery purchases.
That is one of the major findings in new research from UK reward scheme Airmiles, which asked 2,000 people for their opinions about loyalty programmes.
The findings reveal that loyalty schemes still influence consumer preferences, with the average shopper belonging to two schemes and 76% favouring brands that provide rewards.
Average consumer reward collection is £97 a year with £85 being obtained on supermarkets. However, while consumers prefer to collect on modest everyday spending, 64% of people prefer to redeem against one large reward, rather than smaller incremental benefits.
The research illustrates true brand benefit in loyalty schemes but there is some way to go to ensuring that the schemes are built around consumer
behaviour and lifestyle, as 70% of consumers feel that they miss the opportunity to collect rewards.
In relation to credit cards, 45% of credit card holders have opted for one that delivers rewards. For those that have, the type of reward offered was the decision making factor when choosing the card for 54% of people.
Andrea Burchett of The Mileage Company, operator of the Airmiles programme, comments: “In a competitive and recessionary market, it’s important that loyalty schemes are built around the behaviour of consumers rather than being driven by brand requirements.”
She added that the research shows that consumers are looking to get significant rewards from everyday spending – effectively something for nothing.
“Supermarket relationships are the key way to tap into this expectation as is providing significant value – that doesn’t necessarily mean monetary rewards but something that consumers consider a true luxury perk,” said Burchett.