Points and Plastic Remain Popular, Loyalty Scheme Survey Finds

June 18, 20194min

New research shows that the public appetite for points and plastic is as popular as ever, with the majority of UK customers subscribed to at least one loyalty scheme.

According to Hawk Incentives’ The Loyalty Evolution Report which surveyed 2,500 people across the UK – a massive 82 percent of Brits are signed up to one or more programmes. Sixty-four percent are signed up to between one to five loyalty schemes, followed by six to ten (14 percent), and 11 to 20 (two percent).

The founding grocery godfathers’ of loyalty schemes still take the lion’s share of the market, with eight-out-of-ten (81 percent) consumers admitting to subscribing to a supermarket loyalty card scheme.

The UK’s burgeoning coffee shop culture is also driving consumer loyalty, enjoying 42 percent of the share of the market, with restaurants in third place with 33 percent. Least popular currently are fuel schemes (with only six percent of the population subscribing); technology schemes (eight percent); and sports retail loyalty and rewards schemes (19 percent).

The study also revealed that 62 percent consider themselves to be brand loyal. Contrary to previous studies which have painted younger shoppers as more fickle, the Hawk report reveals that Gen Z, Xennials, and Millennials say they stay faithful to the brands they like or love. Indeed 77 percent of 25-34 year olds claim to be brand loyal, along with 70 percent of 18-24 year-olds and 34-44 year-olds.

Meanwhile, 85 per cent of females are signed up to loyalty and reward schemes, compared to 76 percent of men.

Lack of interest was cited by a fifth (20 percent) of respondents as the main reason for not signing up. Seventeen percent cited a perceived lack of value. This is also a greater reason for men (21 percent versus 11 percent for females), as well as the older age group (24 percent). Older consumers aged 55-plus are failing to sign up over concerns about the use of their data, the report found.

Despite the rise of digital technologies, consumers would still prefer a physical loyalty card rather than a digital format. This is the case for both subscribers and non-subscribers.

Over half (58 percent) of subscribers and 30 percent of non-subscribers said something in their purse or wallet was preferable to a smart phone app or another digital platform. Perhaps not surprisingly, non-subscribers don’t really have a preference, but 46 percent said they would still prefer a physical card if they could choose.

Chris Ford of Hawk Incentives said: “The fact that only 15 percent of consumers don’t currently subscribe to rewards programmes shows loyalty schemes are still very much alive and kicking. However, it appears consumers’ perception of them may have shifted as people become more concerned about data in the Facebook era.

“What we do know is that brands that offer loyalty schemes which are relevant, offer choice, and are easy to access, create the best opportunity to engage an already receptive audience of active customers. Mining your data intelligently and sensitively to create targeted rewards and incentives will only make consumers more brand loyal and better brand advocates. Reassurance that their data is in safe hands is, of course, also key in the age of transparency.”


Paul Ainsworth

Paul Ainsworth

Experienced Irish journalist and former newspaper editor now helming executive editorial duties with Customer Experience Magazine, the UK's premier online source for Customer Experience news, features, and opinion, along with its sister site, CXM World.




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