Digital loyalty schemes promise to boost customer engagement

Some good news for retailers is that just 17% of UK consumers claim not to be registered with any retail loyalty schemes, leaving 83% who are members of at least one.

Of those surveyed, 46% said loyalty schemes had the desired effect of making them a more loyal customer, rising to 50% in the 18 to 34 age group. Just 13% of respondents within the same age bracket disagreed that loyalty schemes made them more loyal to a retailer.

Despite this, there’s clear evidence that more could be done on behalf of retailers to encourage full engagement with the schemes. While 74% of all respondents admitted to regularly collecting points, just 47% go on to claim the rewards that are owed to them.

There are a number of reasons behind customers not utilising rewards, including a lack of knowledge around how to claim and a dislike of the perks that are offered. For 33% of respondents however, the main problem is that they simply can’t be bothered to retrieve the rewards they earn.

For many of those surveyed, a move towards digital loyalty schemes signalled the potential for increased engagement. This was particularly the case among 18 to 34-year-olds, 41% of which stated that the ability to view points and rewards on an app would improve their loyalty scheme experience. A further 28% called for more push notifications from loyalty scheme providers, while 32% listed digital vouchers as a potential way that loyalty schemes could be made more engaging.

For small and mid-sized retailers, the cost associated with developing a personalised loyalty program is understandably daunting. However, the past few years have seen the launch of some cost-effective, highly customisable loyalty platforms that afford smaller brands the tools needed to boost customer retention levels.