A new report into consumer expectations of brand loyalty programmes has found that almost half of consumers (49%) were influenced to switch supermarket due to prices in the past year.
The study into consumer attitudes, published by customer engagement, loyalty and lifetime optimisation specialist ELLO Media, also found that amongst the biggest supermarkets, a fifth of consumers identified Tesco as the supermarket they feel the most loyal towards, with Asda (14%) and Aldi (11%) coming second and third respectively.
Meanwhile, the report revealed 47% of UK consumers believe it no longer pays to be loyal. However, more than a third of consumers across all market sectors said they would be loyal to brands if they got true value for their loyalty.
When asked about how they like their loyalty to be rewarded by brands in general, respondents identified supermarket vouchers (53%) as the option they felt offered them the best value for staying loyal, followed by restaurant discounts (24%) and cinema discounts or tickets (19%).
Commenting on the report, Michael Kalli, Managing Director for ELLO Media, said: “The findings of the report reflect that consumers will be loyal when they feel they are receiving real value from supermarket retailers for doing so.
“Rapid developments in data capture have presented supermarket retailers with an incredible opportunity to learn more about their customers than ever before. Yet many brands still aren’t making full use of the technology on offer, leading to their loyalty schemes failing to meet customer expectations. With it costing five times as much to acquire a new customer as it does to retain an existing one, it is in supermarket retail brands’ best interests to start improving their loyalty programmes in earnest.”
The full ‘Understanding Customer Expectations of Brand Loyalty Programmes’ report, is available to download here.
NAM Implications:
- What is so difficult about accepting realities in the market?
- i.e. demand to buy isn’t there. In fact consumer demand is being held back by taxes, falling real incomes, and understated inflation…
- What demand is there can be optimised via supermarket vouchers…
- A no-brainer…
