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Digital loyalty schemes promise to boost customer engagement

Of Britain's loyalty scheme users, 18 to 34-year-olds are the most committed. Even so, more needs to be done in order to offer members a more personalised, engaging experience. That's according to research by London-based mobile wallet provider, Yoyo.

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.

Digital loyalty schemes promise to boost customer engagement

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.

Digital loyalty schemes promise to boost customer engagement

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.


Natalie Stubbs

Natalie joined Epos Now in May 2018, taking on the role of SEO & Content Marketing Executive. As well as a passion for content, she enjoys fashion and good food.

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