The GCVA has released findings revealing the impressive engagement levels of UK consumers with loyalty schemes.
The survey, conducted over 1,000 UK consumers and insights from 36 GCVA member organisations, highlights that loyalty scheme participation remains robust across all age groups. 94 percent of those aged 66 and over are engaged in at least one scheme, alongside 81 percent of young adults between 18 and 25. Schemes also appeal to those on both high and low incomes, with 96 percent of those with a household income of over £75,000 actively involved in such schemes.
"This high engagement rate underscores the effectiveness and widespread appeal of loyalty programmes," said Dr Hannah Shimko, Director General at GCVA. "Our findings indicate that consumers across all demographics are recognising and valuing the benefits provided by these schemes."
The report also identifies sector-specific opportunities where loyalty programmes are particularly effective. Supermarkets lead the way, with 88 percent of consumers using loyalty schemes for their essential shopping needs. Coffee shops and cafes also see substantial engagement, with 35 percent of loyalty scheme users enjoying rewards alongside their regular coffee purchases.
Other sectors showing significant engagement include travel and airlines (25 percent), health and beauty (22 percent), and restaurants and food delivery services (20 percent).
"The high engagement in supermarkets and coffee shops illustrates where consumers are most actively participating in loyalty schemes," added Hannah "Businesses in these sectors, as well as those in travel, health, and dining, can leverage these insights to refine and expand their loyalty programmes, driving greater customer retention and satisfaction."
However, the research also indicates some frustrations with how some loyalty schemes are managed, which businesses should bear in mind. Consumers often find these programmes complex and difficult to use, which can diminish their effectiveness. Additionally, concerns about data privacy and the perceived value of rewards can hinder consumer trust and engagement.
"Gift cards present a powerful solution to these common issues," continued Hannah, "They offer a straightforward, easy-to-understand reward mechanism that simplifies the process for consumers. The flexibility and reliability of gift cards ensure that rewards are both valuable and convenient, addressing the complexity and scepticism that some loyalty schemes face. By integrating gift cards into their loyalty strategies, businesses can enhance user experience, build trust, and ultimately drive higher engagement and satisfaction."
