Supermarkets failing to inspire loyalty in families with young children
Tuesday July 14, 2015 at 6:08pm
Supermarkets are failing to inspire loyalty in families with young children, according to a new study from consumer behaviour experts TCC. TCC’s research has revealed that four in ten families with children under the age of 10 have switched their main supermarket of choice in the last year. The survey, of more than 1,000 UK shoppers reveals that despite the availability of loyalty cards at all of the main supermarkets, many young families have switched to the discounters in search of better prices. Overall, nearly a quarter (24%) of British shoppers switched supermarkets in the last year, a stark contrast to the shopper inertia that was evident in the UK before the recession. David Lawrence, TCC’s director of planning and insight (pictured), says: “Before the recession shoppers merely selected the supermarket that was closest to them and rarely deviated from that choice. This led to retailer complacency and supermarkets taking customer loyalty for granted.” The research reveals that while price will continue to be the main driver for switching supermarkets (42% cited this as the main reason), shoppers say that their choice of supermarket in future will be strongly influenced by those retailers who genuinely recognise and reward their loyalty. Over half of all shoppers (55%) said they want more loyalty rewards than they currently receive, illustrating a clear loyalty gap in the benefits and perceived value of loyalty cards. “The ubiquitous nature of loyalty cards and their questionable generosity means that they no longer offer any point of difference for retailers,” adds Lawrence. “But our research indicates that there is still very much an appetite for loyalty rewards to enhance the shopping experience and build a stronger emotional bond between shoppers and their supermarkets. It may be true that ‘Big Data’ has enabled greater customisation of loyalty offers but there’s no evidence that this has improved the way shoppers feel about their supermarkets. Now that supermarkets are all offering various kinds of price match promises, Lawrence points out that they have “levelled the playing field as far as price is concerned so they have to explore new ways of differentiating themselves to attract and retain shoppers.” TCC’s research suggests that the second most important factor for shoppers switching supermarkets in the future is being rewarded for their loyalty (cited by 36% of shoppers). TCC is a global marketing company that works in partnership with a broad range of retailers to create and implement in-store loyalty marketing campaigns that grow their sales and profitability. With a portfolio of licensed consumer and entertainment partner brands - including Disney and 20th Century Fox among many others - TCC enables retailers to engage with their shoppers and reward them for their loyalty with a wide range of exclusive branded products. Active in over 70 countries, TCC employs around 600 people in 34 offices across the world.