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BizReport : Loyalty Marketing : December 12, 2016

British shoppers have the most loyalty cards, but least likely to use them

Research from Nielsen and Veoo reveals that, while British shoppers have more loyalty cards than most, they use them less, even via mobile.

by Helen Leggatt

Nielsen's 'Global Loyalty-Sentiment' survey was conducted among 30,000 individuals from across 63 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America. It found that, while British shoppers are second most-likely in the world to have a loyalty card (two-thirds of Brits, only surpassed by Finland (94%)), and have on average 3.6 cards, they are also the least likely to use those cards or benefit from associated rewards.

Loyalty card-holders in Britain are also less likely to be influenced by loyalty cards when choosing where to make a purchase. Just 51% said they would buy from a retailers with a loyalty scheme over one without, the second lowest figure globally with the exception of Denmark. Furthermore, only 55% of British loyalty scheme members say they shop more at retailers with schemes - far lower than the global average (67%).

According to the report, British loyalty card holders were found to show less positivity towards loyalty schemes than the global average which, says Mike Watkins, Nielsen's UK head of retailer and business insight, "is a paradox, considering how popular they are here. This suggests Britons simply like the idea of signing up rather than actually using them - a 'tick-box' exercise - but the schemes aren't personalized enough to keep them engaged. The result being UK retail is drowning in a sea of loyalty cards".

British loyalty scheme members are also lax using schemes that are integrated with their smartphone. According to a recent survey from Veoo, 95% of loyalty card holders in the US and UK have between 1 and 10 physical loyalty cards in their wallet and 90% of them use those cards on a monthly basis. However, in the UK, just over a quarter (28%) of loyalty card holders currently use a loyalty scheme that is integrated with their smartphone, behind the US in which 52% do so. Furthermore, 52% of US respondents are now saving offers/coupons to their mobile wallet solution whereas only 28% of respondents are doing this in the UK.

According to Veoo, it is retailers in the UK that are holding back mobile loyalty schemes and that, with more than 4 in 10 consumers becoming bogged down with physical cards, it won't be long before convenience and market conditions mean the UK will catch up with the US.

Tags: global, loyalty marketing, mobile, research

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