From in-store points to beauty brand reward apps, the market for loyalty programmes in the UK is a fight for brands to retain customer trust.
However, with so many to choose from, their true value has been up for debate. But confidence in these programmes is far from fading, as over two-thirds (70%) of British consumers say that loyalty schemes successfully entice them back to shops.
That’s according to new research from payment provider SumUp, who surveyed 2,000 UK residents to uncover how consumers really feel about shopper loyalty schemes and whether they’re reaping the benefits or missing out on valuable rewards.
An overwhelming majority of consumers feel the significance of loyalty programmes across the UK, with almost three-quarters (73%) saying they offer good value for money, and almost half (41%) say the savings they make through loyalty schemes play a role in how they manage their finances.
The emotional and behavioural impact of loyalty cards is also apparent. Almost two-thirds (61%) of consumers say they feel more connected to a local business when they recognise their loyalty via an app or card, and over a quarter (28%) feel a sense of guilt shopping at a competitor if they have a loyalty card with their usual shop.
Interestingly, almost two-thirds (64%) would happily wait to buy something if it means they can get it cheaper through their loyalty programme, demonstrating just how much value shoppers place on rewards.
The data also shows how loyalty schemes encourage shoppers to spend more than usual when they’re close to earning a reward, as over two-thirds (68%) say they sometimes - or always - find themselves doing so.
“Consumers want their rewards to offer genuine value and wouldn’t hesitate to leave a programme if their needs aren’t met.”
Despite having some sense of loyalty, consumers want their rewards to offer genuine value and wouldn’t hesitate to leave a programme if their needs aren’t met. Consumers are most likely to avoid a loyalty scheme if the benefits are not clear or appealing (27%), and over a third (35%) have stopped using a loyalty programme they were already part of because it took too long to earn rewards.
Just over half (52%) would also change their local shop if another place offered better loyalty perks, so brands need to ensure their offers meet the expectations of customers.
The research makes it clear that loyalty programmes are influencing the way consumers shop and are a valuable tool for brands when used the right way. The first step is getting the rewards system right. Almost three in five shoppers (59%) prefer small, immediate rewards over larger, long-term rewards, such as 10% on the first shop rather than a free item after 10 visits.
Gabriel Destremaut, PR and corporate communications expert at SumUp, said: “When developed with the consumer in mind, rewards programmes are an effective way to build brand trust and loyalty.
“We wanted to show businesses how they can create worthwhile loyalty schemes that encourage shoppers to return and spend. The findings show how valuable these programmes are to shoppers, and how much potential there is for brands to make them more rewarding and easier to use.”
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