British retailers and brands may be missing out on potential revenue, as new research reveals that over half (54 per cent) of loyalty club members are not receiving offers and rewards based on their past purchase history or personalised shopping habits.
The findings come from XCCommerce’s Promotions at the speed of demand report, which focuses on consumers attitudes to promotions. Of the 2,000 UK consumers they surveyed, only 29 per cent of shoppers had been served rewards and offers as part of a loyalty programme during lockdown, while less than half (43 per cent) had offers targeted towards their personal shopping habits.
This can be compared to earlier research by YouGov and Mando-Connect for their ‘What the British want from loyalty programmes’ report. They found that 69 per cent of surveyed consumers prized benefits and rewards as being ‘most’ important when choosing to become, or stay, a member of a brand’s loyalty programme. While 61 per cent also said they wanted discounts on products and services.
Robin Coles, EMEA MD at XCCommerce, said: “When consumers sign up to a loyalty scheme they expect retailers to close the loyalty loop and provide personalised rewards and offers in return. At a time when shoppers are increasingly fickle and dispersed across a multitude of channels, to ignore this act of good faith on behalf of the consumer damages loyalty and will only lead to lost sales.
“By automating these processes and implementing a rules-based approach that includes the use of past sales history and shopping habits, retailers can generate a higher return on their investment in promotions and loyalty programmes.”
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