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.”

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