Groceries still key to loyalty scheme success

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By: Wise Marketer Staff |

Posted on April 8, 2010

Groceries still key to loyalty scheme success

Most British shoppers say they belong to 2 reward schemes, while 76% favour brands that provide rewards, and 84% collect the majority of their loyalty rewards through grocery shopping, according to consumer research by The Mileage Company, operator of the UK's Air Miles programme.

The survey examined consumers' attitudes toward loyalty schemes and rewards-based credit cards, and found that loyalty schemes still influence consumer preferences.

The average consumer reward collection is 97 per year, with 85 of that being earned through supermarkets. But while the study shows that consumers prefer to collect on modest everyday spending, 64% of people prefer to redeem points for one large reward, rather than several smaller benefits.

While the research highlighted various brand benefits from loyalty schemes, there is still some way to go to ensure that such programmes are built upon the collection and analysis of consumer behaviour and lifestyle data, as 70% of consumers feel that they sometimes miss opportunities to collect rewards.

When it comes to rewards-based credit cards, 45% of cardholders said they have opted to carry one card that delivers rewards. For 54% of those consumers, the type of reward offered was the key decision-making factor when choosing the card.

According to Andrea Burchett of The Mileage Company, 

"In a competitive and recessionary market, it's important that loyalty schemes are built around the behaviour of consumers rather than being driven by brand requirements. This research shows that consumers are hoping to get significant rewards from everyday spending - effectively 'something for nothing' - and supermarket relationships are the main way to tap into this expectation. That doesn't necessarily mean monetary rewards, but something that consumers consider a true luxury perk."

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