73% of UK fashion retailers fail to reward customer loyalty
Major fashion retailers don’t offer loyalty schemes or subscriptions even though 86% of consumers state that certain benefits would encourage them to sign-up.
Brand new report from Cybertill reveals the current loyalty landscape in UK fashion retail, highlighting that only 27% of fashion retailers offer a loyalty scheme. 67% of consumers state that a loyalty scheme offering points that equal money to spend in-store would encourage them to sign up to a loyalty scheme. Top UK retailers are missing out on repeat custom by not offering rewards to customers who choose to shop with them time and again.
The research comprises three sources including; an online survey conducted in collaboration with YouGov, an analysis of top UK fashion retailers, and interviews with 38 participants spanning generations, from Gen Z to Baby Boomers. Key findings include:
- Only 10% of participants surveyed stated that nothing in particular would encourage them to sign-up to a loyalty scheme, leaving a massive 90% of participants stating that if the retailer got the incentive/reward right, they would be encouraged to sign-up to a loyalty scheme.
- Although many may argue that the loyalty scheme has been replaced by the subscription, Cybertill research has unearthed that only 15% of UK fashion retailers currently offer a VIP subscription scheme.
- None of the retailers that did offer loyalty schemes offered VIP subscriptions as well.
Cybertill CEO Ian Tomlinson explains “retailers need to offer, real, instant and obvious value to the modern-day customer, who has limited time and limited patience for complicated loyalty schemes. If the scheme is too complicated, customers will remember their experience and customers will remember their experience with a brand long after they’ve forgotten a discount.”
The full report can be downloaded from here and the raw data can be sent upon request.
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