UK: Lack of personalization hurts loyalty programmes

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By: RickFerguson |

Posted on March 1, 2016

Another week, another loyalty survey�our latest survey comes courtesy of iVend Retail, which reveals that a third of UK shoppers are not only disappointed in the lack of personalisation found in most loyalty programmes, but are also disappointed by the lack of personalisation in retail store environments. The report also calls on UK retailers to put the customer first in their omni-channel efforts, understanding that today�s consumers demand interaction through the channel of their choice.

The study, �Omni-Illusion: why are customer connections disappearing when shoppers reach the store?�, is based on a survey of 1,000 European consumers from the United Kingdom, Germany, France, Italy and Spain, and conducted by Red Shift on behalf of iVend Retail. Among the study�s other key findings:

  • 33% of UK shoppers surveyed are disappointed by lack of personalisation in traditional loyalty programmes.
  • 33% are disappointed by the lack of targeted offers in brick-and-mortar stores, compared to the personalised offers they receive online.
  • Nearly half (48%) of UK shoppers have missed out on redeeming reward points or paper vouchers before the expiry date.
  • 15% often forget to use loyalty cards in their wallets.
  • 26% of would like to receive personalised offers on their mobile devices when they enter the store.
  • 25% would prefer to get regular offers sent directly to their mobile devices to earn points and rewards both in-store and online.

The Bullet Point: Calls for personalisation are nothing new for the loyalty industry; consumers have long understood that marketers collect transaction and personal data through loyalty programmes, and they expect to see that data used to deliver personalised recognition and reward. What�s new is that shoppers now expect that personalisation to occur through every channel, including the physical store.

The challenge for marketers is to understand what �personalisation� means to their best customers. Does it mean relevant offers based on transaction history? Does it mean personalised greetings and a customized experience within the physical retail environment? Or does it mean rewards tailored to the individual? Chances are, it�s all of the above. To build enduring loyalty, retailers must present personalised, relevant, and value-added interactions across every interaction.

Doing so requires customer data to travel seamlessly through the enterprise. Properly positioned within an omni-channel environment, the loyalty programme can become the centrepiece of these efforts, allowing data to flow voluntarily into the enterprise with value delivered back in the form of reward and recognition. That�s today�s loyalty challenge. We�re confident that UK retailers are up to the task.

Download the full report here.

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