Loyalty card usage falls in 2013 as shoppers question value: new study
A new study has found that 8 million UK shoppers use their loyalty cards less than they did a year ago while as many as one in three fail to derive any benefit from them.
The Optimising your Omni-Payments report by global payments provider Worldpay has revealed that 30% of UK consumers surveyed said they found it difficult to remember to take their loyalty card with them when shopping. In addition, 75% of respondents said they would like loyalty schemes linked to their payment card to ensure that they were automatically rewarded for purchases, while 21% wanted loyalty cards to be stored on a smartphone payment app.
In a further sign of consumers’ desire for greater digital integration in their shopping experiences, the findings also suggest that traditional paper till receipts may soon be on their way out. Younger shoppers were especially keen to see their demise, with 26% of 16-24 year-olds wanting to receive vouchers through text and 21% through a mobile app. However, more than half of older consumers aged 25-64 would still prefer a paper voucher issued at the till.
Ron Kalifa, deputy chairman at WorldPay said: “Our research shows that shoppers are starting to lose patience with loyalty schemes as expectations of the ease and speed of payments increase. With new legislation on interchange fees reducing the income card issuers have traditionally received, there’s a clear commercial incentive for them to maximise the success of their promotions and engage retailers directly, rather than rely on cashback discounts.
“As well as developing the technology to better incorporate loyalty card payments, there is a role for payment service providers to play in brokering the relationship between retailers, publishers and card issuers. Loyalty cards provide vital business intelligence for retailers, and valuable savings for shoppers, so it’s critical that they’re incorporated into the way consumers pay today.”
The survey found that despite usage declining, nine in 10 consumers still use a loyalty card, with the most popular being the Tesco Clubcard (68%) followed by the Nectar card at 59% and Boots Advantage Card at 48%.
