New research from the Gift Card and Voucher Association (GCVA) reveals that modest and regular incentives are key to winning consumer loyalty in today’s competitive market.
This study, conducted with a nationally representative sample of 1,000 UK adults and insights from 36 GCVA member organisations, underscores how small (but not too small) yet frequent rewards can significantly influence where consumers choose to spend their money.
The findings show that loyalty schemes are far more than just a perk for many consumers; they are a decisive factor. A notable 25 per cent of consumers acknowledge loyalty schemes as a crucial motivator, with 11 per cent viewing them as a significant influence on their shopping decisions.
Dr. Hannah Shimko, Director General of the GCVA, underscores the importance of these insights: “In the fiercely competitive world of retail, our research reveals that loyalty schemes can make or break consumer relationships. The key takeaway is that you don’t need to offer extravagant rewards to make a meaningful impact. Modest and frequent incentives are remarkably effective in fostering deep customer loyalty.”
The GCVA study uncovers that 26 per cent of consumers are significantly swayed by rewards with a perceived value of £10 or less. When the perceived reward value increases to £20, the influence on consumer decisions almost doubles with over half (51 per cent) of respondents affirming that these modest rewards boost their loyalty. This finding highlights that attainable rewards are instrumental in securing long-term customer commitment.
Frequency also plays a vital role in shaping consumer behaviour. Regular, moderate discounts wield a greater influence, impacting 38 per cent of consumers, compared to 12 per cent who are swayed by occasional, smaller rewards. This indicates that consistent engagement through loyalty programmes is essential for keeping consumers interested and loyal.
The research does show the carrying level of expectations however, with nearly a third of consumers (30 per cent) seeking substantial rewards before they would let it influence where they choose to buy.
Moreover, a niche 5 per cent of consumers are drawn to the exclusivity of limited-time offers or special events, showing how loyalty programmes can be tailored to meet diverse consumer preferences.
Dr. Shimko adds, “Gift cards are ideally suited for these ‘little and often’ reward strategies. They offer a versatile and effective way for retailers to provide regular, meaningful rewards that truly resonate with consumers and foster genuine loyalty.”
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