More than two-thirds of UK consumers say loyalty schemes are still doing their job, despite growing competition and scrutiny over their value.
New research from fintech company SumUp found that 70% of shoppers say loyalty programmes successfully encourage them to return to stores. The study, based on a survey of 2,000 UK residents, found that confidence in points, perks and rewards remains strong, despite consumers becoming more selective.
Perceived to offer value
Nearly three-quarters (73%) of respondents believe loyalty schemes offer good value, while 41% say the savings influence how they manage their finances. The findings also highlight the emotional pull of such programmes, with 61% saying they feel more connected to a local business when their loyalty is recognised, and 28% admitting they feel reluctant to shop elsewhere if they hold a loyalty card.
They are also contributing to a shift in consumer behaviour. Around 64% of consumers say they are willing to delay a purchase to access a better deal through a loyalty scheme, while 68% admit they sometimes spend more when close to earning a reward.
Consumers want instant rewards
However, shoppers prefer immediate rewards over long-term benefits, with almost three in five (59%) prefer smaller, instant rewards rather than waiting for larger benefits. Schemes that fail to deliver risk losing engagement, with 35% of consumers saying they have stopped using a programme because rewards took too long to earn. More than half (52%) would switch retailers for better perks.
Supermarket loyalty schemes are the most widely used with 76% of consumers signed up to one or more, followed by coffee shops (34%). By contrast, multi-brand schemes see limited uptake.
Gabriel Destremaut, PR and corporate communications expert at SumUp, said: “When developed with the consumer in mind, rewards programmes are an effective way to build brand trust and loyalty. We wanted to show businesses how they can create worthwhile loyalty schemes that encourage shoppers to return and spend. The findings show how valuable these programmes are to shoppers, and how much potential there is for brands to make them more rewarding and easier to use.”
Stay informed
Our editor carefully curates two newsletters a week filled with up-to-date news, analysis and research. Click here to subscribe to the FREE newsletter sent straight to your inbox. Why not follow us on LinkedIn to receive the latest updates on our research and analysis?
