Cost saving remains biggest draw for loyalty scheme users

By Melodie Michel contact

- Last updated on GMT

Money saving is still the biggest motivation for people to join loyalty schemes
Money saving is still the biggest motivation for people to join loyalty schemes

Related tags: Cent, Loyalty program

The majority of consumers that sign up to loyalty schemes are drawn to cost savings, as opposed to location or mobile accessibility of offers, according to data marketing firm GI Insight.

The firm’s ‘Lure of Loyalty’ survey of over 1,000 UK consumers showed that 74 per cent are enticed by redeemable points, while 60 per cent sign up to get vouchers and 54 per cent want access to special offers.

However, the firm explained that other factors also come into play in customers’ decision to join a loyalty scheme: a simple sign-up process was attractive for 24 per cent of respondents, while 21 per cent said they would sign up to the loyalty scheme of an easy-to-get-to venue, and 19 per cent explained they would be keen to register for brands they frequently bought from.

Mobile apps

Mobile accessibility was only a motivating factor for 6 per cent of users, though there were differences depending on age groups. For example, 10 per cent of 18-24-year-olds and 14 per cent of 25-34-year-olds were excited by it, compared to just 1 per cent of over-65s and 2 per cent if 55-64-year-olds.

Older consumers saw convenience as more appealing than younger generations, with 34 per cent of over-65s and 23 per cent of 55-64-year-olds saying they usually sign up for loyalty schemes of stores and businesses that are easy to get to, compared to only 14 per cent of 24-34-year-olds and 15 per cent of 35-44s.

Among the other benefits seen as a plus were free drinks and snacks, special deals linked to personal events and exclusive access to new products and select offers.

Gender differences

According to the report, women are more drawn by redeemable loyalty points (78 per cent against 70 per cent for men) and free treats such as coffee or cake (19 per cent versus 15 per cent), while men are more excited by the availability of a mobile app (8 per cent versus 4 per cent).

Andy Wood, GI Insights managing director, said: “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.

“This 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.”

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