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Yougov — Growing loyalty: Strategies to attract and retain loyalty scheme members (UK webinar) (2024)
24 slides from Yougov's conference presentation, Sep 27, 2024
Slide 1: Growing loyalty: Strategies to attract and retain loyalty scheme members
UK WEBINA R Growing loyalty: Strategies to attract and retain loyalty scheme members Living consumer intelligence |https://business.yougov.com/ yougov.com/business
Slide 2: Today's speakers
2 Strategies to attract and retain loyalty schemes members Today’s speakers Sarika Rana Charlie Hills Head of Consumer Insights, UK Chief Strategy Officer YouGov Mando Connect
Slide 3: Foreword
3 Strategies to attract and retain loyalty schemes members Foreword In an increasingly competitive This new report, drawing on a survey of 1,000 market, consumer loyalty has British consumers, explores the key drivers and barriers in loyalty programmes, including become a crucial metric for the uniq
Slide 4: Spontaneous Recall
4 Strategies to attract and retain loyalty schemes members Spontaneous Recall Supermarket loyalty programs, particularly Tesco and Nectar, dominate loyalty programme recall, especially among the 55+ age group. Which loyalty programmes are you aware of? Subgroup findings Mentions of supermarkets in t
Slide 5: 9 in 10 Brits are signed up for one or more loyalty schemes
5 Strategies to attract and retain loyalty schemes members 9 in 10 Brits are signed up for one or more loyalty schemes, with grocery & food dominating. Supermarkets have the highest enrolment, followed distantly by food & delivery loyalty programs . Trial and usage of loyalty programs Subgroup findi
Slide 6: Awareness of loyalty programme benefits remains limited
6 Strategies to attract and retain loyalty schemes members Despite the high enrolment rates, awareness of loyalty programme benefits remains limited. Clear need for educating the consumers to enhance engagement and perceived value. Benefit awareness How aware would you say you are of the benefits of
Slide 7: Discounts and monetary rewards top the appeal
7 Strategies to attract and retain loyalty schemes members Discounts and monetary rewards top the appeal, particularly among women and older age. Freebies also appeal especially to women, while prize draws only appealing to some, mainly 18-24 and Londoners. Customising reward types wherever possible
Slide 8: Ease of redeeming rewards and monetary benefits are top priorities
8 Strategies to attract and retain loyalty schemes members Ease of redeeming rewards and monetary benefits are top priorities, with significant privacy concerns among the 55+ demographic, indicating the need for enhanced trust measures. Importance of features on 1-5 rating scale Subgroup findings Wh
Slide 9: Most rewards show positive impact on brand consideration
9 Strategies to attract and retain loyalty schemes members Most rewards show positive impact on brand consideration. Discounts and monetary rewards, with high appeal most likely to boost brand consideration, particularly among younger demographics. Importance on brand consideration Subgroup findings
Slide 10: Brands need to capitalize on positive sentiment among the 18-34 age group
10 Strategies to attract and retain loyalty schemes members 64% Impact on repeat purchase To what extent do you agree with the following statement? Being a part of a loyalty scheme encourages me to make repeat purchases and stick to the brand of consumers agree that being part of a loyalty programme
Slide 11: Only 4 in 10 are convinced discounts are genuine
11 Strategies to attract and retain loyalty schemes members Only 4 in 10 are convinced that the discounts, special pricing offered by loyalty schemes are genuine vs. non loyalty prices. Level of confidence is higher among 18-24 age group and Londoners. Building trust by clearly communicating true pr
Slide 12: Sign-up fees, irrelevant rewards and high point thresholds are major barriers
12 Strategies to attract and retain loyalty schemes members Sign-up fees, irrelevant rewards, and high point thresholds are major barriers to loyalty programme enrollment. 18-34 age group are more open to joining, while 45+ cite value and privacy concerns. Therefore, simplified enrollment and more a
Slide 13: Email dominates as the preferred communication channel
13 Strategies to attract and retain loyalty schemes members Email dominates as the preferred communication channel for loyalty programs, with postal mail preferred by 55+ and younger demographics favoring digital channels. Tailoring multi-channel communication strategies to specific audiences could
Slide 14: Paid loyalty schemes have low penetration and limited future consideration
14 Strategies to attract and retain loyalty schemes members Paid loyalty schemes have low penetration and limited future consideration. With significant rejection, especially among women, there seems to be a need for more compelling value propositions. Paid Loyalty schemes – Participation Subgroup f
Slide 15: Paid loyalty schemes face perception challenges and are seen as poor value
15 Strategies to attract and retain loyalty schemes members Paid loyalty schemes face perception challenges and are largely seen as poor value To improve perception and uptake, brands / retailers will need to have a strong value for money proposition and powerful comms to drive the point home with t
Slide 16: Key takeaways
16 Strategies to attract and retain loyalty schemes members Key takeaways Data collected among 1000 Nat Rep UK Sample in May 2024 1 2 3 Widespread Educating consumers Appealing rewards participation and to enhance perceived and trust issues growth potential value Most Brits have signed up for at lea
Slide 17: Key takeaways
17 Strategies to attract and retain loyalty schemes members Key takeaways Data collected among 1000 Nat Rep UK Sample in May 2024 4 5 6 Impact on brand Addressing barriers Challenges with paid consideration and and enhancing value loyalty schemes repeat purchases propositions Loyalty programmes seem
Slide 18: Bringing loyalty to life
18 Strategies to attract and retain loyalty schemes members Bringing loyalty to life
Slide 19: Special pricing was the most appealing type of reward at 85% Net Appeal
19 Strategies to attract and retain loyalty schemes members Special pricing was the most appealing type of reward at 85% Net Appeal Member Pricing • Member pricing first launched in the grocery industry in the UK but has since spread across other sectors including pharmaceuticals, fuel and fashion.
Slide 20: Tesco Clubcard had the highest Spontaneous Recall
20 Strategies to attract and retain loyalty schemes members Tesco Clubcard had the highest Spontaneous Recall • While member pricing is becoming more commonplace in the grocery sector. Tesco Clubcard are looking to innovate and differentiate through new mechanics such as customer challenges. • The c
Slide 21: Monetary rewards like Coupons / Vouchers had 82% Net Appeal
21 Strategies to attract and retain loyalty schemes members Monetary rewards like Coupons / Vouchers had 82% Net Appeal • Three+ rewards • Providing a clear value exchange has been key in recent years and Three + Rewards has catered for this need for tangible value through their discounts and reward
Slide 22: Instant freebies had 67% Net Appeal
22 Strategies to attract and retain loyalty schemes members Instant freebies had 67% Net Appeal. • 41% found ‘Instant freebies’ extremely appealing. While still lower than monetary rewards, the market is seeing a distinct shift toward more instantaneous forms of loyalty recognition as consumers are
Slide 23: Paid loyalty schemes face perception challenges but are more positively received by 18-34
23 Strategies to attract and retain loyalty schemes members Paid loyalty schemes face perception challenges but are more positively received by 18-34 age group. • Deliveroo have doubled down on their paid for loyalty approach with a revamped and renewed loyalty proposition. • They offer Silver, Gold
Slide 24: Thank you
Thank you https://business.yougov.com/ Living Consumer Intelligence | yougov.com/business You Gov, 202 4, all rights r ese rve d. All materials containe d h erein are pro tected by copyright laws. Any storage, repro duction or distribution of such materials, in whole or in part, in any fo rm without