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Loyalty scheme research shows reward points are a big lure but not the only driving factor for consumers
GI Insight survey reveals cost savings excite people but convenience, special treats, exclusive perks and even mobile access are all part of the mix for many customers
New research by customer analysis and data marketing specialist GI Insight shows that cost savings trump convenience and special extras when it comes to driving membership and continued participation in UK loyalty schemes. But the research also shows that many consumers are not simply drawn to loyalty programmes by reward points but a range of factors attract them to join and remain active in schemes. Te survey of more than 1,000
UK consumers reveals that, while consumers are most excited about earning redeemable points when it comes to loyalty programmes – with 74 per cent saying this is what attracts them – 60 per cent point to vouchers or coupons providing a percentage or cash value discount as a primary driver for joining and staying active in schemes and 54 per cent cite access to special offers. In the report, Te Lure of Loyalty,
a significant proportion of consumers also indicate that convenience is an important motivating factor, with 24 per cent pointing to a simple sign-up process as an inducement, 21 per cent noting the appeal of an easy-to-get-to location, and 19 per cent citing the fact they buy from a brand frequently as a draw.
Te findings demonstrate that
few consumers, however, view accessibility to a loyalty scheme via a mobile app as real driver for enrolling and remaining active in a scheme, as just 6 per cent list this as an element
that excites them. Additional loyalty scheme benefits
such as free drinks and snacks, special deals linked to personal events and exclusive access to new products and select offers have less impact than cost savings but a noteworthy minority see these as compelling features of a scheme, with 17 per cent seeing the freebie treats as a real plus while 12 per cent list the other perks as an enticement. When comparing women and
men, the research reveals just a few notable differences: female respondents are more drawn than male consumers by redeemable loyalty points (78 per cent versus 70 per cent) and by the offer of free treats such as coffee or cake (19 per cent versus 15 per cent), while men are more enthused by the availability of a mobile app (8 per cent versus 4 per cent). Older consumers place a greater
emphasis on convenience than their younger counterparts, with more respondents in the higher age groups seeing store or business location and existing customer relationship as influential factors: • 34 per cent of over-65s and 23 per cent of 55-64-year-olds say they gravitate toward the loyalty schemes of stores and businesses that are easy to get to, while only 14 per cent of 24-34-year-olds and 15 per cent of 35-44s say this is a deciding factor;
• 29 per cent of the over-65s
and 21 per cent of the 55-64s say shopping regularly with a brand is good reason to join a scheme, versus 12 per cent of 25-34-year-olds and 15 per cent of 18-24s.
On the other hand, the research
shows younger consumers are noticeably more excited by mobile app access to a scheme, as 10 per cent of 18-24-year-olds and 14 per cent of 25-34-year-olds list this as compelling reason to participate in a loyalty programme, compared to just 1 per cent of over-65s and 2 per cent of 55-64-year-olds. Andy Wood, GI Insights
Managing Director, comments: “With consumers becoming more demanding about what they expect from the companies they deal with, the opportunity for organisations that run loyalty programmes to increase both membership volumes and participation are there. Tis can only be achieved, however, by understanding the key motivators for loyalty scheme participation and using the customer data captured to ensure that these elements are managed and executed in a way that suits the customer base. With all the right elements of a loyalty scheme in place, a business as the perfect platform for encouraging customers to remain loyal, spend more, buy frequently and generally expand their relationship with the business – which in turn will drive greater profitability.”
Beyond Christmas: Looking Ahead to 2015
DIRECT COMMERCE ASSOCIATION
Tuesday 18th November The Queen’s Club, Barons Court, West London
Direct Commerce |
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Timely topics range from data legislation & security, to funding a growing business; from expanding internationally to deploying DRTV, plus a baker’s dozen of swiftly delivered tips, insights & pointers spanning all channels to market & a lively Business Leader’s debate with special guest Nick Wheeler & there’s more; including the unveiling of the candidates for the DCA Council Co-Chair posts kickstarting the elections; and presentation of the coveted Supplier of the Year Awards. Call 01271 855545 now to secure your place for this action packed day.
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