Loyalty schemes not effective, says research

Loyalty card schemes are not creating customer loyalty for retailers, according to new YouGov research.

The report from YouGov SixthSense revealed that more than 90% of shoppers would not stop shopping at a retailer if they scrapped their loyalty card scheme and only 17% of shoppers choose where to shop based on loyalty card schemes.

Despite the wide-spread use of loyalty card programmes, half of shoppers don’t think it’s worthwhile to collect points and would prefer to convert points into a money-off discount at the till.

A quarter would prefer retailers to offer more promotional deals and one in ten rarely redeem points even if they have colleted them.

YouGov says that uptake of loyalty schemes is higher among better off consumers, which indicates that because they spend more, they accumulate more rewards.

James McCoy, research director for YouGov SixthSense, says: “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. Retailers need to do more to ensure loyalty schemes engage with all types of customer.”

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here