National survey investigates the state of loyalty in Britain’s retail sector today
A 2,000 consumer survey from loyalty specialist The Logic Group and global market research company Ipsos MORI, has revealed that second only to banks and building societies (71 per cent), consumers demonstrate the highest levels of loyalty to supermarkets, where 63 per cent of respondents felt that they are loyal to one supermarket.
The survey also demonstrated that loyalty programme adoption still remains relatively low in sectors outside of retail, although numbers appear to be on the increase. 56 per cent are members of loyalty programmes for shops, versus only 10 per cent in the entertainment and going out category, and nine per cent for travel and hotels.
Supermarkets – the greatest traditional exponents of the loyalty programme – would seem to be continuing to lead the way. However, the sector also experienced the only significant drop in loyalty across all the sectors surveyed year on year, from 72 per cent in 2009 to 63 per cent in 2010. What makes this all the more surprising is that supermarkets have generally been seen to have had a ‘good recession’. One possible cause is that the focus on price seen during the recession has undermined feelings of loyalty towards individual supermarkets. Consumers may be getting a better deal, but this has come at a cost as far as the customer relationship is concerned.
Anamaria Chiuzan, customer insight and loyalty senior marketing manager, at The Logic Group comments: “The results of the survey demonstrate that although supermarkets are still leading the way with customer loyalty programmes, during the recession loyalty in this sector suffered a pronounced drop.
“Although customer loyalty to supermarkets remains high, a nine per cent fall in one year should cause concern for supermarket bosses; notwithstanding the considerable amount of time and money invested in retail loyalty programmes.
“The retail sector is a highly competitive environment and businesses are under ever-increasing pressure to retain customers. One concern is that the foundations of retail success, service and brand value, have been weakened in the great play on price. Consumer loyalty can’t be won on value alone; good deals must go hand in hand with relevant offers.”
For further information and to download the full results of the survey please visit the following site: http://www.the-logic-group.com/Product/LoyaltyReport2010
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Research Methodology
*The Ipsos MORI / Logic Group survey interviewed a nationally representative sample of 2,154 adults across Great Britain. Interviews were conducted face-to-face, in home from 23rd – 29th April 2010
*The follows on from the 2009 Loyalty Survey, which comprised of 1,999 interviews between 16th – 22nd January 2009.
There are several demographic classification systems used in market research. A well established system, as well as the most widely known and used, is that of social grading, derived from the British National Readership Survey (NRS). Whilst everyone in the industry is familiar with the term social grade and its six groups A, B, C1, C2, D and E, what is less well known is how social grade is defined and how it can be used as a powerful discriminator: http://www.ipsos-mori.com/DownloadPublication/1285_MediaCT_thoughtpiece_Social_Grade_July09_V3_WEB.pdf
About The Logic Group (www.the-logic-group.com <http://www.the-logic-group.com> )
The Logic Group partners with leading organisations across Europe to enhance the effectiveness, security and profitability of their customer interactions.
The Company specialises in the secure management of information and transactions through the delivery of trusted payment and loyalty solutions that enable increased revenue, improved profit, and reduced operating costs and risk.
We combine our skills, experience and innovation into client solutions that drive improved customer experience, enhanced customer insight and stronger customer relationships.
We believe that we have an unmatched passion and track record for building effective customer interaction. That is why the Company is behind many of the best known names in Europe for whom maximising the value of their customer interaction matters most.
Contact
For more information please contact:
Tom Flisher/Sarah McArthur
Octopus Communications
[email protected]
0845 3700 655