Half of UK adults are more likely to make a purchase from a store or brand if it offers a loyalty card scheme, according to new research from Plastic Card Services, a UK based plastic card manufacturer. The latest study of more than 2,000 consumers across the UK revealed that two thirds of respondents said such schemes make them feel more loyal and over 80 percent would replace a card if they lost it.
Consumers aged over 55 are five times more likely to use loyalty cards than those under 25, according to the survey. However, the younger generation feels the greatest sense of loyalty, with eight out of ten under 25s stating that they feel greater allegiance to a brand for which they hold a card.
“It is astonishing to think of the impact loyalty cards have had on consumer purchasing behavior over the past 30 years, and as our survey shows, the demand for them and their associated rewards is continuing to grow,” said Rob Nicholls, managing director of Plastic Card Service, following the release of the survey findings. “In fact, we found that around 80 percent of the UK population use a loyalty card at least once a week – they’ve really become ingrained in our day to day culture.
“And despite a step towards digital mediums across almost every aspect of our lives, the loyalty market is one where consumers still prefer a physical product. Our survey revealed that while new technology has seen the development of mobile loyalty apps, less than a fifth (18.9 percent) said they would swap their cards for an app. As this latest poll shows, the past three decades have been significant for the loyalty card, and with this in mind, we look forward to what the next 30 years will bring in this field of marketing.”
More than two thirds (67.6 percent) of survey respondents said they used supermarket loyalty cards most frequently. High Street loyalty card (10.85 percent) was the next most frequently used. A High Street loyalty card is one used on the “High Street,” a term for UK shopping districts.
The biggest reasons cited for choosing loyalty cards were savings (66.6 percent); points (55.50 percent); and cash back (54 percent); respondents could give multiple answers on this question.
UK consumers tend to use their rewards quickly, according to the survey. More than 28 percent of the respondents said they redeem points as soon as they have 500 or less. Another 20 percent redeem between 501 and 1000, and another 10.93 percent before passing 1250 points. At the other end of the spectrum, 11.64 percent of respondents said they wait until they have in excess of 5,000 points.
Nicholls pointed out that this year marks 30 years since UK consumers were introduced to the first High Street-backed store card, with Sainsbury’s Homebase Spend and Save Card in 1982. However, it wasn’t until the launch of the Tesco Clubcard in 1995 and Boots Advantage in 1997, that they became popular en masse.