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Shoppers think they wait too long for loyalty rewards

Monday December 22, 2014 at 1:36pm
More than half of UK shoppers think it takes too long to earn rewards in loyalty schemes, and more than a quarter have dropped out of a scheme as a result, according to new research. A survey of UK consumers carried out by motivation specialists Grass Roots Group found that 54% feel it takes to long to earn rewards, while 27% have stopped using a loyalty programme as a result. Adam Goran (pictured), divisional director of customer engagement at Grass Roots Group, says: “Brands have already done the hard work by earning customer loyalty. Why, then, do so many risk losing their customers by not keeping them engaged throughout the entire loyalty lifecycle?” The survey also revealed that 33% of respondents expect to receive significant rewards from a loyalty programme within just a month of signing up while a further 45% are prepared to wait between one and three months. The older generation is more impatient, with 12% of over 55s expecting to receive a reward within a week, compared to only 4% of 18-24 year olds. Goran adds: “Our research found that over half of customers (57%) are happy to be contacted by a loyalty provider once a month, with 18-24 year olds wanting more frequent contact (38% are happy to be contacted between once a day and every two weeks). Customers want, and expect, to be contacted by their loyalty scheme providers and if approached in the right way at the right time, they will become true advocates and not just occasional shoppers. If brands fail to capitalise on this and don’t engage effectively with their customers between the times where they spend and save their rewards, they will find it increasingly difficult to hold on to loyal customers.” The research was carried out by Grass Roots Group in September 2014 and surveyed 2,741 UK consumers about their views towards, and experience of, customer loyalty schemes.
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