Marketers need to work on loyalty activation, research claims

Boots: improving the targeting of its loyalty scheme
Boots: improving the targeting of its loyalty scheme

Marketers are not doing enough to make customers activate loyalty programmes, with two in five (39%) people not using all the loyalty programmes they are enrolled in, according to findings from ICM Research.

Eighty six per cent of all respondents are signed up to at least one loyalty programme and 40% are signed up to three or more programmes.

Follow-up interviews by ICM revealed the biggest reasons for low take-up were offers never being relevant or ceasing to be relevant, and programmes being difficult to understand or not user-friendly.

The survey of 2,012 adults also found there was a huge opportunity being missed with the youth market, as a third of 18- to 24-year-olds were not signed up to any loyalty programme.

ICM's findings come as some major retailers are working on improving their loyalty programmes, with Boots and Ikea taking measures to improve the targeting of their schemes.

Jamie Belnikoff, project director at ICM, said: "In addition to effective loyalty schemes increasing business profitability, marketers must ensure that schemes also strengthen customers' emotional commitment, from which positive recommendation will follow."

Belnikoff said: "Relevance is fundamental. Unsurprisingly these days, near-cash rewards appear more compelling than ever.

"But it's fascinating to observe that what people find relevant depends on the sector the business is in."

Research showed that when people were offered rewards by a mobile phone company, the majority preferred not to receive something related to their mobile usage.

Some 48% said they would prefer a voucher to spend at a high-street store, against only 32% who would opt for any of free minutes, free texts or free mobile internet.

In contrast, when a supermarket offers rewards, 70% prefer offers or discounts to spend at the supermarket, with only 18% wanting a voucher for another high-street store.

Belnikoff said: "The success of schemes like Tesco Clubcard, Boots and Nectar is borne out by our finding that 77% of us would prefer small guaranteed rewards on an ongoing basis, rather than the chance to win something big."

Follow Matthew Chapman at @mattchapmanUK

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer