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Britain's Savvy shoppers demand more from loyalty programmes
New research reveals that the downturn has led to a significant shift in consumer attitudes and the emergence of a new 'Savvy Shopper' whose number one priority is to get better value for their money.
The majority have focused their priorities on the high street, looking for rewards that give money off products and services (61%). However many of these Savvy Shoppers remain sceptical about the motives of businesses, with 60% considering programmes to benefit companies more than customers.
The Logic Group/Ipsos MORI survey, interviewed a nationally representative sample of 2,154 adults across Great Britain exploring the ‘State of Loyalty’ in Britain today with a focus on consumer confidence, attitudes and behaviour towards the products and services they buy. This is the second survey, following on from baseline research carried out in January 2009.
The Savvy Shopper is demanding more than just money off, they are also looking for an enhanced experience to match their diverse lifestyles. The Savvy Shopper also expects companies to understand what is important to them; 48% (second only to money off) said that rewards that are relevant to them would encourage them to spend more with an organisation. And while the majority are members of just one loyalty scheme (42%), the number that are members of two currently stands at 14%, an increase of 8% from last year.
There has also been an increase within retail loyalty programme membership compared to a year ago, with the survey identifying a 9% rise compared to 47% in 2009. Furthermore the majority are actively engaged in loyalty programmes, with 70% stating that they always remember to use their cards. However businesses still seem to have a job to do in fully connecting with the Savvy Shopper, with only 27% agreeing that loyalty programmes have made them more loyal to a specific brand.
“It’s no surprise that Britain’s consumers have become more frugal over the last eighteen months and are increasingly looking to not only get more from their loyalty programmes, but are also seeking the peace of mind that comes with knowing they are getting the best possible deals,” comments Antony Jones, CEO of customer insight and loyalty specialist The Logic Group
“However as programmes become more sophisticated businesses need to address consumer cynicism about the value they add and who benefits from them most, building on loyalty as a key part of the customer journey. Businesses are operating in a highly competitive environment and are under ever-increasing pressure to retain customers. This has led many to focus on the quick wins delivered by money off offers and deals, which are undoubtedly popular amongst consumers. But the next challenge is for businesses to better communicate the benefits of their programmes and in turn use their loyalty programmes as a means of demonstrating an understanding of the customer mindset, building an emotional connection with the people that buy their products and services or visit their stores.”
Tagged as: loyalty | customers | retail |
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