Study shows strength of loyalty cards
New research has found that half of UK adults are more likely to make a purchase from a store or brand if it offers a loyalty card scheme.
The study revealed that two thirds of UK shoppers said the schemes made them feel more loyal and over 80% would replace a loyalty card if they lost it.
Commissioned to mark 30 years of UK high street loyalty card schemes, the survey by plastic card manufacturer Plastic Card Services, found that consumers aged over 55 were five times more likely to use loyalty cards than those under 25. However, the younger generation felt the greatest sense of loyalty, with eight out of ten under-25s stating that they felt greater allegiance to a brand if they held its loyalty card.
Tesco Clubcard was found to be the most popular loyalty card, closely followed by Boots Advantage and Sainsbury’s Nectar. However the majority of women voted Boots Advantage card their favourite, as did shoppers under 25. Overall, the supermarket loyalty card was by far the most popular, being used six times more often than any other card.
Shopping savings was a further area highlighted by the research which found that UK adults save more than £4 billion a year by using the cards. In addition, the study revealed that 86% of the UK adult population owned at least one loyalty card with each individual consumer saving an average of £100.32 annually, equating to £4.39 billion every year across the UK. However, the research also discovered that shoppers are sitting on £351 million worth of unused points annually.
Rob Nicholls, managing director of Plastic Card Services, explained: "In this recent research, we found that almost one in ten card owners admit they have never cashed in their points, with shoppers in London and those aged under 25 the guiltiest of this. Meanwhile, Yorkshire folk and those aged over 55, are most likely to cash in their points regularly.
"It has been an extraordinary journey over the past three decades for loyalty card, but this research indicates that they are well and truly here to say. In fact, despite a step towards digital mediums across almost every aspect of our lives, the loyalty market is one where consumers still prefer a physical product, with less than a fifth (18.9%) of respondents saying they would swap their cards for a mobile app.
"Key to the future of the loyalty card, especially in the retail sector, is reaching those consumers who have cards but don’t use them properly and getting more people to sign up to schemes."
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