NEWS31 October 2014

UK loyalty schemes ‘lack relevance’

News UK

UK — 56% of UK consumers are regularly offered irrelevant rewards or discounts, leading to many leaving loyalty programmes as a result, according to new research.

A survey of consumers in the UK has revealed that over half say they are regularly offered irrelevant rewards or discounts, despite the fact that 50% cite loyalty programmes as a factor when choosing who to buy from.

The research, conducted by Grass Roots Group among 2,741 consumers, also found that 27% of people leave loyalty programmes as a result of this disconnect between consumers and brands. The research uncovered the importance of taloring engagement according to age: while 49% of 18-24 year olds cite offers and rewards as most important when buying from a brand, 86% of over 65s value low prices over offers.

“To achieve the consumer Holy Grail – loyal advocates who like to shout about how good you are – brands must understand that their consumers are individuals, and they must be treated as such,” said Adam Goran, divisional director of customer engagement at Grass Roots Group. “With 41% of 18-24 year olds preferring to interact with loyalty programmes via their smartphones, compared to just 25% of the over 65s, demographic differences can have a huge impact upon a successful engagement strategy.”