A new report on loyalty schemes in the retail sector has revealed that some 93 per cent of shoppers would not stop shopping somewhere if they scrapped their loyalty card scheme.
The YouGov SixthSense study reveals 86 per cent of shoppers use a loyalty card on a regular basis, despite the wide-scale usage of loyalty schemes and only 17 per cent of shoppers choose where to shop based on their participation in loyalty card schemes.
More than half of shoppers do not think it is worthwhile collecting points and just under a quarter of participants would prefer retailers to offer more promotional deals rather than points.
Some 52 per cent of participants in loyalty card schemes prefer to convert points into a money-off discount at the till, reflecting the thrifty nature of shoppers in the current economic climate.
Only three schemes achieve significant usage levels. Tesco’s Clubcard (66 per cent), Sainsbury’s Nectar card (55 per cent) and Boots Advantage Card (48 per cent) lead the way, indicating that many people participate in more than one scheme.
James McCoy, research director for YouGov SixthSense, said: “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.
“Participation is highest amongst the better off, indicating that because they spend more, they accumulate points faster and get more rewards, making participation worthwhile. Retailers need to do more to ensure loyalty schemes engage with all types of customer.”
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