Shoppers are not as loyal to loyalty card schemes as they are to low prices, exclusive research for The Grocer has revealed.
A survey of more than 2,000 adult shoppers showed that more than half (54%) of shoppers would prefer their supermarkets to invest in lower prices than loyalty card schemes, though 29% admitted they made good use of their cards and 27% that they enjoyed the perks of using them.
The findings, which come in the wake of Sainsbury denials that it is considering pulling out of the Nectar scheme, appear to reinforce Asda’s line that prices are more important than loyalty schemes to consumers.
Caroline North, senior research for HI Europe, which carried out the study, said the findings also suggested that some retailers were not adequately highlighting the benefits of such schemes. “Maybe the benefits are not being sold to them,” she said. “There is a marketing opportunity that is potentially not being exploited.”
However, despite apparent consumer qualms, the survey showed that penetration of loyalty schemes was high. Of the 84% of shoppers who had loyalty cards, 47% owned one to two, 24% owned three to four, while 6% claimed to own more than five.
The survey also showed that more shoppers had a Tesco Clubcard than any other loyalty card and that they used it more frequently. A whopping 74% of loyalty card holders said they owned a Clubcard and 33% used their card more than once a week.
The Co-op’s Dividend card was not far behind, with 31% of Co-op shoppers claiming to use their card more than once a week. Just 26% of those with a Nectar card used it this frequently - despite the combined pulling power of Sainsbury, Debenhams, BP and Barclaycard.
The popularity of Tesco Clubcard showed that its marketing strategy was the most successful, said North. “They’ve really caught the market,” she said. However, she added, more could be done generally to encourage more frequent and wider use of loyalty cards.
Though most cards promise a raft of benefits, shoppers said they still tended to redeem their points against food items (70%) rather than non-food items (37%), air miles (9%) or petrol (9%). Of those with at least one loyalty card, 62% said that such schemes did not influence where they chose to shop and a surprising 79% claimed they were not swayed by points offers to make particular purchases.
However, the attitude of younger shoppers contrasted sharply with the general level of ambivalence towards loyalty schemes. Almost half of the 16 to 24-year-olds (48%) surveyed said loyalty card schemes influenced where they shopped and a third said they influenced what they bought. This group regarded loyalty cards as the norm, said North, warning that retailers without such schemes risked alienating tomorrow’s shoppers.
>>p44 Card game calls for high stakes
Liz Hamson
A survey of more than 2,000 adult shoppers showed that more than half (54%) of shoppers would prefer their supermarkets to invest in lower prices than loyalty card schemes, though 29% admitted they made good use of their cards and 27% that they enjoyed the perks of using them.
The findings, which come in the wake of Sainsbury denials that it is considering pulling out of the Nectar scheme, appear to reinforce Asda’s line that prices are more important than loyalty schemes to consumers.
Caroline North, senior research for HI Europe, which carried out the study, said the findings also suggested that some retailers were not adequately highlighting the benefits of such schemes. “Maybe the benefits are not being sold to them,” she said. “There is a marketing opportunity that is potentially not being exploited.”
However, despite apparent consumer qualms, the survey showed that penetration of loyalty schemes was high. Of the 84% of shoppers who had loyalty cards, 47% owned one to two, 24% owned three to four, while 6% claimed to own more than five.
The survey also showed that more shoppers had a Tesco Clubcard than any other loyalty card and that they used it more frequently. A whopping 74% of loyalty card holders said they owned a Clubcard and 33% used their card more than once a week.
The Co-op’s Dividend card was not far behind, with 31% of Co-op shoppers claiming to use their card more than once a week. Just 26% of those with a Nectar card used it this frequently - despite the combined pulling power of Sainsbury, Debenhams, BP and Barclaycard.
The popularity of Tesco Clubcard showed that its marketing strategy was the most successful, said North. “They’ve really caught the market,” she said. However, she added, more could be done generally to encourage more frequent and wider use of loyalty cards.
Though most cards promise a raft of benefits, shoppers said they still tended to redeem their points against food items (70%) rather than non-food items (37%), air miles (9%) or petrol (9%). Of those with at least one loyalty card, 62% said that such schemes did not influence where they chose to shop and a surprising 79% claimed they were not swayed by points offers to make particular purchases.
However, the attitude of younger shoppers contrasted sharply with the general level of ambivalence towards loyalty schemes. Almost half of the 16 to 24-year-olds (48%) surveyed said loyalty card schemes influenced where they shopped and a third said they influenced what they bought. This group regarded loyalty cards as the norm, said North, warning that retailers without such schemes risked alienating tomorrow’s shoppers.
>>p44 Card game calls for high stakes
Liz Hamson
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