Loyalty schemes are used by many retail companies all over the world, aiming to attract and most importantly retain customers. Market research firm The Grass Roots Company reported that 55% of consumers say rewards and incentives are a reason for staying with a provider, showing just how important loyalty schemes are to consumers.
The majority of supermarket chains operate a loyalty scheme; Tesco’s Clubcard and Sainsbury’s Nectar Card are the most popular, with 16 million and 19 million card holders respectively. According to market researchers TNS, 85% of UK households have at least one loyalty card.
Recently, there has been a big push on voucher use from retailers looking for a way to stand out in the competitive loyalty game. ‘The Lure of Loyalty’ survey of over 1,000 consumers reported that 60% of consumers join a loyalty programme to receive vouchers and coupons. This is the second most popular reason after the opportunity to earn redeemable points (74%).
Vouchers are a fantastic way to get consumers excited about, and engage with, a loyalty scheme. Z-Card® customer All Bar One chose to have a tear off voucher included as part of their PocketMedia® campaign, to reflect the increasing number of consumers using vouchers.
Morrisons Supermarket has recently launched a loyalty scheme called “Match & More”, which is heavily focused on vouchers. Customers can gain points if they could have paid less for their groceries at another supermarket. Points are also up for grabs on selected products in store, and at Morrisons Petrol Stations. As soon as a customer collects 5,000 points they will be sent a £5 voucher to use in store.
Receiving and redeeming vouchers is widely accepted among consumers now more than ever, and with brands becoming even more innovative with their offers, it is likely voucher use will continue to increase and encourage long- term brand loyalty.