Survey casts doubt on reward scheme effectiveness
Loyalty cards “unlikely” to affect where a customer shops
A new poll by YouGov SixthSense poll has found that 93% of shoppers would not stop using a retailer if it no longer offered a loyalty card.
The news comes despite Tesco this week celebrating record profits boosted by its double-points Clubcard promotion.
The YouGov survey did find, however, that almost a fifth (17%) said the use of a loyalty cards was a major factor in where they chose to shop.
Despite the wide-spread use of loyalty cards in the UK, half of shoppers do not think it is worthwhile to collect points and would prefer to convert points into a money-off discount at the till.
86% of shoppers use a loyalty card on a regular basis, but despite the wide-scale usage of loyalty schemes, half of shoppers do not think it is worthwhile collecting points. Just under a quarter of participants would prefer retailers to offer more promotional deals rather than points.
Over half of participants in loyalty card schemes (52%) prefer to convert points into a money-off discount at the till, reflecting the thrifty nature of shoppers in the current economic climate. 19% of respondents save up points to earn a treat and a significant 10% of loyalty card users collect points but rarely, if ever, redeem them.
Two-thirds of respondents in the poll (66%) were holders of a Clubcard, while Nectar (55%) and the Boots Advantage card (48%) were the next most popular schemes.
Asda’s lack of a loyalty scheme has been cited by critics as a factor in its lacklustre Christmas performance.
“Loyalty schemes need to do more to create customer loyalty,” said James McCoy of YouGov SixthSense. “Participation is highest amongst the better off, indicating that because they spend more, accumulate points faster and get more rewards. Retailers need to do more to ensure loyalty schemes engage with all types of customer.”