Despite a lot of media attention to the contrary, loyalty schemes continue to play a key role today, benefiting both the retailer and the consumer. In fact, for retailers trying to remain competitive in an omni-channel market, loyalty forms a large part of their arsenal. For customers, loyalty schemes and rewards heavily influence buying decisions, especially when they receive targeted and relevant offers based on their interests and past purchases.
This attitude is reinforced by recent research that we undertook with independent survey specialist, Censuswide, into the consumer mindset regarding retail loyalty. The company successfully polled a sample of 1,092 respondents across the UK, which yielded some interesting results.
Loyalty Still Matters
The first is that loyalty definitely still matters to consumers. We found that 85% of shoppers are more likely to shop with a brand if it offers a loyalty scheme. While this might not be surprising, what was surprising is that a further 27% of shoppers said they would actually avoid a retailer that didn’t have one.
Personalisation Plays an Increasing Role
The second key finding was that personalisation is playing an increasing role in the life of the consumer. So much so that three-quarters of shoppers (74%) said they remained brand loyal as a result of receiving targeted, relevant offers.
In the age of Amazon, taking this appetite for personalisation and targeted offers to the next level is critical for retailers wanting to ensure long-term customer satisfaction and business success. Of course it’s not necessarily that easy.
One of the major requirements for retailers in this quest to deliver personalisation is access to the right information. When we asked consumers how willing they were to divulge this information, almost two-thirds (64%) said they would share their data in order to get those personalised offers.
Is getting quality data a challenge for retailers? Are they making the proper use of it? Are they effectively delivering the right levels of personalisation to their customers? Are customers enjoying the rewards of their loyalty?
We asked consumers these questions, as well as customer attitudes to coupons and other aspects of loyalty in our Consumer Insight Index.
And, of course, there are always two sides to every story, which is why we commissioned similar research on retailers. Watch this space for what we discovered and the accompanying report.