- Posted by Sarah Todd
- On 14th December 2016
Loyalty schemes are still hugely popular in the UK but are at risk of alienating younger users, particularly those under the age of 25, according to new research commissioned by point of sale marketing specialist Ecrebo.
Despite high average satisfaction (95%) and frequent use – 91% of UK consumers are signed up to loyalty schemes and use them an average of three times a week – the polling reveals a growing generational divide in how users view loyalty programmes, and identifies several general areas for improvement.
The research revealed:
- 91% of UK consumers are members of loyalty schemes but this drops to 83% of 16-24 year olds
- Over a third (36%) of 16-24 year olds found loyalty schemes to be too complicated, compared to roughly a quarter (27%) of those aged over 25
- Three in ten (31%) 16-24 year olds felt that the sign-up process for loyalty schemes was too long and complex, almost double any other age group (with an average of 17% for those aged 25 or older)
Consumers who used loyalty programmes also identified several areas for improvement: Three quarters (74%) said they would be more likely to join schemes with personalised rewards, whilst 89% said if loyalty programmes were quick and easy to use, it would influence where they shopped. Half (49%) of consumers said they would be attracted to loyalty schemes that were cardless.
The polling also revealed a growing appetite for new types of rewards, with two-thirds (66%) saying that they would be tempted to use schemes that offered “exclusive access, services or products”. This rose significantly to 79% for 16-24 year olds. Personalisation was also an area younger consumers felt far more strongly about than other loyalty scheme users. Two out of five (40%) of those aged 16-24 “strongly agreed” that personalisation of rewards would influence where they spent their money, more than double other age groups, with only 18% of those over 25 feeling the same way.
Dr. Hassan Hajji, Co-Founder and CEO, Ecrebo said: “Despite the ongoing popularity of loyalty schemes, there is still work to do for retailers and brands as consumers are looking for a blend of speed of rewards, simplicity and personalisation. Our research highlights a growing demand – especially among younger shoppers – for loyalty programmes which are personalised, convenient and genuinely rewarding. In a marketplace which remains more competitive than ever, it is crucial that retailers continually reassess their loyalty offer, consider new and different ways of engaging customers and stay ahead of changing expectations and needs.”
To find out more or download the full UK Loyalty Landscape report, please visit www.ecrebo.com/loyalty2016
Notes to editors
The study, of 1,200 nationally representative UK consumers was completed by Censuswide for Ecrebo.