Half of 18 to 34-year-olds in Britain say retail loyalty schemes make them a more loyal customer, but while 70% regularly collect points only 47% are engaged enough to claim the rewards owing to them, according to a new YouGov survey conducted on behalf of Yoyo.
Yoyo, Europe’s fastest growing payments and loyalty marketing platform, wanted to find out what the current perception of retail loyalty schemes was amongst UK consumers, as well as how they accumulated and earned rewards and what they thought would improve the loyalty scheme experience.
When asked what British consumers thought about retail loyalty schemes, 46% of all respondents said loyalty schemes had made them a more loyal customer, which increased to 50% for those aged 18 to 34.
49% of women said loyalty schemes made them more loyal, and 42% of men agreed. People in London (48%) were most likely to agree that loyalty schemes made them more loyal, while those in Scotland were least likely to agree (40%).
According to the YouGov survey, 13% of all respondents said they were not a member of any retail loyalty scheme, suggesting 83% of British people are part of at least one loyalty scheme (78% when it came to 18 to 34-year-olds).
The survey then compared consumer behaviour around collecting loyalty points and redeeming rewards.
When asked how often they collected points through their loyalty schemes, 74% said they always or often collected loyalty points (70% for 18-to 34 year-olds), 17% sometimes collected loyalty points and only 8% rarely or never collected loyalty points.
79% of women always or often collected loyalty points - 10% higher than men; people living in the east of England collected points most often (80%), and Londoners were most likely to rarely or never collect loyalty points (11%).
The survey then asked how often respondents claimed rewards owing to them through their loyalty schemes.
Only half (50%) of all respondents always or often claimed rewards owing to them, which went down to 47% for 18 to 34-year-olds.
30% of all respondents sometimes claimed rewards, and 19% rarely or never claimed rewards.
Men were less likely to claim rewards than women (47% v 53%), people living in the east of England claimed rewards most often (58%), while those in Scotland were most likely to rarely or never claim rewards (22%).
The survey then asked those who rarely or never claimed rewards why this was the case.
Nearly a quarter (24%) of all respondents said “I don’t like the rewards that are offered”; 20% said “I think the process to claim rewards is too time consuming”; 12% said “I don’t know how to find out what loyalty rewards are offered”; and a third (33%) simply said “I can’t be bothered”.
When it came to 18 to 34-year-olds, 20% said “I don’t like the rewards that are offered”; 22% said “I think the process to claim rewards is too time consuming”; 15% said “I don’t know how to find out what loyalty rewards are offered”; and 37% simply said “I can’t be bothered”.
Finally, the survey asked what new features would improve the retail loyalty experience for consumers
26% wanted to be able to view their points and rewards on offer through an app, which jumped to 41% for 18 to 34-year-olds, 26% wanted rewards to be personalised to past purchases (35% for 18 to 34 year-olds); 26% wanted to receive instant notifications when they reached enough points to start claiming rewards: (28% for 18 to 34-year-olds).
18% wanted to be able to receive digital vouchers and use them through their smartphones, which jumped to 32% for 18 to 34-year-olds; and 17% wanted to collect retail loyalty points without the need to sign up for a scheme or have a loyalty card (19% of 18 to 34-year-olds).
Michael Rolph, CEO of Yoyo and one of Loyalty Magazine’s 30 under 40, said: “This data clearly shows that British consumers are positive about the value of retail loyalty schemes, and it’s become a regular habit for them to collect points when out shopping.
“The problem lies in what happens afterwards, with the survey showing either confusion or dissatisfaction on what consumers should do with their loyalty points, with only 47% regularly claiming rewards.
“From the survey’s findings, it’s clear that consumers, especially 18 to 34-year-olds, believe a mobile-led strategy would vastly improve the delivery of loyalty schemes, whether it’s an end-to-end app-based loyalty scheme experience, personalised rewards based on past purchase behaviour or digital vouchers that consumers could instantly use through their smartphones.”
About Yoyo
Founded in 2013 by Alain Falys and Michael Rolph, Yoyo is the fastest growing mobile payment and loyalty marketing platform in Europe. Through its unique omni-channel point-of-sale acceptance rails, Yoyo delivers a seamless mobile payment and loyalty experience for consumers, whilst providing retailers with the tools to better engage, reward and retain their customers.
To find out more, please contact georgia@yoyowallet.com or visit the Yoyo website
