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Consumers question value of loyalty schemes

Retailer programmes failing to convince, says Cims study January 1 2003 Store cards and reward schemes are failing to convince consumers that retailers value their loyalty,… View Article

GENERAL MERCHANDISE NEWS

Consumers question value of loyalty schemes

Retailer programmes failing to convince, says Cims study
January 1 2003
Store cards and reward schemes are failing to convince consumers that retailers value their loyalty, according to a study carried out for strategy consultants Cims.

Recent high profile moves by UK retailers to revitalise loyalty programmes have included the launch of the Nectar scheme, which includes Sainsbury’s and Debenhams, and Tesco’s expansion of its Clubcard scheme to include retailers such as Allders and H Samuel.
Nevertheless, the survey of 2,000 people carried out for Cims by research group RSGB found that more than a third of people believe such schemes do nothing to reward their custom. Only 35 per cent of those questioned believed that the major supermarket schemes do enough to reward their loyalty.
However, supermarkets performed far better than other sectors, with just 4 per cent of consumers claiming their bank recognised their loyalty.
Credit card companies fared equally badly, with only 4 per cent of customers satisfied with rewards, despite cash-back offers and other initiatives designed to encourage use of cards in the run up to Christmas.
Petrol stations, corner shops and mobile phone operators performed even worse, with only 2 per cent of those questioned saying they were satisfied with any rewards offered.
Jonathan Grisdale, head of corporate development at Cims, said: “Our latest findings suggest that in the rush to follow the pack and launch reward schemes, many companies are making a lot of noise about rewards but their messages are falling on deaf ears.”
Supermarkets can also take comfort from the fact that in an area where some of the fiercest loyalty of all is to be found, only 2 per cent of fans felt their devotion to their football team was rewarded.

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