More than three-quarters of British adults are members of at least one loyalty programme and rewards from partner brands (rather than from the brand operating the programme) are the most popular variety of benefit, according to new research.
YouGov, an international market research and data analytics firm, and Mando-Connect, a partnerships and rewards agency, have commissioned the largest ever study into what the British think of brand loyalty. The study asks the 275,000 poll respondents what they want from loyalty programmes, who engages the most, and the impact that offering a programme has on brands.
According to the study’s findings the British are far bigger fans of loyalty than most brands think. 77% of British adults are members of at least one loyalty programme. 72% think loyalty programmes are a great way for brands and businesses to reward their customers and 59% think all brands should offer a loyalty programme.
Interestingly the study highlights huge disparities between demographics and sectors. Demonstrating, there is no single solution to getting loyalty right. It reveals:
- Women (84%) are far more likely to be members of loyalty programmes than men (70%);
- Membership levels also decrease with age. People aged over 55 (83%) are far more likely to be members of programmes than those aged 18-24 (61%).
Charlie Hills, managing director and head of strategy at Mando-Connect, said: “This study shows that the loyalty industry in Britain has a huge opportunity to attract, delight, engage and retain customers. The British have very high engagement levels with programmes and strongly desire great programmes from the brands and businesses they admire and shop with.”
‘Industry sector’ also proves an interesting differential, with supermarkets hugely dominate in terms of scale. 65% of GB Adults are members of supermarkets’ loyalty programmes. Tescos is the biggest (65%), followed by: Nectar (58%), The Co-Operative (26%), Morrisons (23%), M&S (19%), Waitrose (18%) and Iceland (16%).
The study also looked at insights into how programmes can get loyalty right. For example, 55% of loyalty programme members want rewards from partner brands, not from the brand offering the programme. In store discounts and offers were the most popular type of reward (87%), and the benefit of being a member of a loyalty programme community was the least motivating (only 6%). Service-based rewards were also surprisingly unwanted; only 18% of people wanted better services from brands as rewards, almost five times less than those who wanted discounts or offers.