Loyalty Cards Not Gaining Loyal Customers

Published on 1 January 1970 by Raffick Marday

Loyalty card schemes have been shown to fail as consumers admit they bear no effect over where they shop.

A report has shown 93 percent of shoppers would not stop shopping somewhere if they scrapped the loyalty scheme, while only 17 percent said they choose where to shop based on their participation in them.

The research by YouGov SixthSense also revealed 86 percent of consumers use a loyalty card on a regular basis but despite this, half of these shoppers do not think it is worthwhile doing so.

“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,” advised James McCoy, YouGov SixthSense research director.

“Retailers need to do more to ensure loyalty schemes engage with all types of customer.”

Over half of participants in a loyalty card scheme admitted to preferring to convert their points into money-off discounts.

A further 19 percent said they save up points to earn a treat while 10 percent who collect points rarely ever redeem them.

The most popular schemes used by shoppers were the Tesco Clubcard, Nectar Card, and Boots Advantage card, accounting for 66 percent, 55 percent and 48 percent of usage respectively.

Pre Pay Cards

A pre pay card UK enables a card user to manage their monthly income more efficiently as it prevents over spending, aids budgeting and also avoids the user from becoming overdrawn or getting into debt.

The cards come with a means to check where you have used the card to monitor the exact location and amount used there, which could help aid shoppers identify relevant loyalty card schemes for their specific needs.

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