Loyalty Cards

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21 April 2010
Loyalty card schemes NOT creating wide-spread customer loyalty, according to new YouGov research

A major new report from YouGov SixthSense on loyalty schemes in the retail sector reveals that 93% of shoppers would not stop shopping somewhere if they scrapped their loyalty card scheme and only 17% of shoppers choose where to shop based on their participation in loyalty card schemes.

86% of shoppers use a loyalty card on a regular basis, but despite the wide-scale usage of loyalty schemes, half of shoppers do not think it is worthwhile collecting points. Just under a quarter of participants would prefer retailers to offer more promotional deals rather than points.
Over half of participants in loyalty card schemes (52%) prefer to convert points into a money-off discount at the till, reflecting the thrifty nature of shoppers in the current economic climate. 19% of respondents save up points to earn a treat and a significant 10% of loyalty card users collect points but rarely, if ever, redeem them.

Only three schemes achieve significant usage levels. Tesco Clubcard (66%), Nectar Card (55%) and Boots Advantage Card (48%) lead the way amongst the British public, indicating that many people participate in more than one scheme.

Commenting on the results, James McCoy, Research Director for YouGov SixthSense says "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"

Notes to editors
All figures, unless otherwise stated, are from YouGov Plc. The survey was carried out online. Total sample size was 1,469 British adults (including 1,322 participants in loyalty card schemes). Fieldwork was undertaken between 18th and 20th February 2010.
The full report on loyalty card usage in the UK is available to buy now from YouGov SixthSense. This report is part of a series of 60 reports on the food, drink and grocery retail sectors. Other reports include chilled and frozen foods, snacking and alcoholic and non-alcoholic