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Loyalty Schemes: Research Reveals Growing Generational Divide

Published on Dec 18 2016 9:21 PM in Technology tagged: Retail / Loyalty / Schemes

Loyalty Schemes: Research Reveals Growing Generational Divide

Loyalty schemes are still hugely popular, but are at risk of alienating younger users, particularly those under the age of 25, according to new research commissioned by point of sale marketing specialist Ecrebo.

Despite high average satisfaction (95 per cent) and frequent use – 91 per cent of UK consumers are signed up to loyalty schemes and use them an average of three times a week – the polling reveals a growing generational divide in how users view loyalty programmes, and identifies several general areas for improvement.

The research revealed that while 91 per cent of UK consumers are members of loyalty schemes but this drops to 83 per cent of 16-24 year olds.

Over a third (36 per cent) of 16-24 year olds found loyalty schemes to be too complicated, compared to roughly a quarter (27 per cent) of those aged over 25.

Three in ten (31 per cent) 16-24 year olds felt that the sign-up process for loyalty schemes was too long and complex, almost double any other age group.

Consumers who used loyalty programmes also identified several areas for improvement: 74 per cent said they would be more likely to join schemes with personalised rewards, whilst 89 per cent said if loyalty programmes were quick and easy to use, it would influence where they shopped. Half (49 per cent) of consumers said they would be attracted to loyalty schemes that were cardless.

The polling also revealed a growing appetite for new types of rewards, with two-thirds saying that they would be tempted to use schemes that offered “exclusive access, services or products”. This rose significantly to 79 per cent for 16-24 year olds.

Personalisation was also an area younger consumers felt far more strongly about than other loyalty scheme users. Two out of five (40 per cent) of those aged 16-24 “strongly agreed” that personalisation of rewards would influence where they spent their money, more than double other age groups, with only 18 per cent of those over 25 feeling the same way.

Dr. Hassan Hajji, co-founder and CEO of Ecrebo, said: “Despite the ongoing popularity of loyalty schemes, there is still work to do for retailers and brands as consumers are looking for a blend of speed of rewards, simplicity and personalisation. Our research highlights a growing demand – especially among younger shoppers – for loyalty programmes which are personalised, convenient and genuinely rewarding.

"In a marketplace which remains more competitive than ever, it is crucial that retailers continually reassess their loyalty offer, consider new and different ways of engaging customers and stay ahead of changing expectations and needs.”

© 2016 European Supermarket Magazine – your source for the latest retail news. To subscribe to ESM: The European Supermarket Magazine, click here.

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