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New research by Ubamarket has revealed the true extent of the UK’s love-hate relationship with retail loyalty schemes. The white label supermarket app commissioned a survey of more than 2,000 UK adults, uncovering that the majority of consumers (59%) are signed up to at least three different loyalty schemes. Moreover, almost half (46%) of shoppers said they choose to buy items in certain shops over others based on the points they can earn through a store’s loyalty scheme.
However, despite the significant impact loyalty schemes evidently have on consumers’ spending habits, Ubamarket’s nationally-representative study uncovered mass frustration with the current system. Three-tenths (30%) of UK adults – the equivalent of 15.4 million people – say they have lost track of how many loyalty schemes they are a member of, while 25% said they have no idea how many points they have on their loyalty cards and would not know how to find out. The findings come as research shows that a massive £6 billion sits unclaimed in loyalty accounts with the UK’s leading retailers.
Furthermore, a huge number of people also stated that they are frustrated with card-based loyalty schemes. With a quarter of shoppers (25%, or 12.83 million people) saying they regularly forget their loyalty card, consumers have claimed that the current system is “inefficient” and needs changing – this figure jumps to 38% among millennials.
As a result of the inefficiencies of in-store loyalty schemes, 21% of UK adults said they are opting to shop online so they can easily track their spend and receive loyalty points automatically. Millennials are even more likely to turn away from in-store shopping, with 35% of those aged between 18 and 34 saying they prefer to go online for the loyalty benefits it provides.
Will Broome, Founder and CEO of Ubamarket, commented on the findings: “Loyalty schemes have a huge amount to offer consumers – that is why so many of us are signed up to vast numbers of them and are drawn to certain retailers over others. But the way people collect, track and reclaim points through these schemes is horribly out-dated. Shopping apps with inbuilt loyalty schemes are an easy way to overcome these issues. No more worrying about if you’ve remembered your loyalty card and no more being left in the dark about how many points you have; in-app loyalty means you will effortlessly amass and reclaim loyalty benefits, which is why retailers must move towards this solution.”
