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Retail

Customer Loyalty Schemes 'Key To Success' For Retailers, GlobalData Says

By Dayeeta Das
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Customer Loyalty Schemes 'Key To Success' For Retailers, GlobalData Says

Loyalty schemes offered by retailers could be the 'key to success' for FMCG retailers, according to data and analytics firm GlobalData.

Consumers are increasingly taking advantage of loyalty schemes, particularly in food and grocery, and health and beauty categories.

More than half of consumers (55.3%) said that loyalty scheme incentives always or often influence their product choices in food and grocery, while 52.1% reported the same for health and beauty, according to GlobalData’s How People Shop Survey 2023.

The survey included 6,000 respondents across Germany, France, Spain, Italy, China, and the US.

The additional perks from loyalty schemes give retailers the opportunity to differentiate themselves from their competitors, the analytics firm noted.

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Low Customer Loyalty

FMCG firms, in particular, witness low customer loyalty due to their highly interchangeable offerings, increasing the need to offer perks through loyalty schemes to retain and gain market share, according to GlobalData’s latest report, Thematic Intelligence: Customer Loyalty in Retail and Apparel.

Oliver Maddison, retail analyst at GlobalData, commented, “In addition to the competitive benefits that loyalty schemes offer to retailers, data collection gives substantial opportunities to better serve customers. 

“The data that retailers collect on their consumers’ shopping habits can help them target campaigns to specific consumer groups, personalise promotions, and ensure their proposition remains relevant.”

Loyalty Schemes

The study cited Carrefour's free Netflix standard subscription trial for customers in Rouen and Bordeaux in France as an example of how retailers can make their recently established loyalty schemes more enticing to old and new customers alike.

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Maddison added, “Carrefour’s increased focus on its customer loyalty offering shows its lack of complacency despite its already strong position within both the French and global grocery markets and is evidence of its shrewd attitude to remaining competitive.”

Read More: More Than Half Of Retailers Seeing An Increase In Adoption Of Loyalty Schemes

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