Consumers happy to trade personal data for loyalty rewardsby
Over three quarters of consumers admit they are unlikely to give out personal details to companies unless it is through an established loyalty scheme, new research has shown.
GI Insight surveyed more than 1,000 consumers across the UK and found that 68% claim a loyalty scheme is responsible for keeping them purchasing from at least one company over the last few years.
Additionally, the survey showed brands have continued their focus on improving loyalty with 58% of respondents saying they have received a greater number of relevant and personalised communications and offers over the last year. Over half of those surveyed believe brands are using their knowledge of consumer’s preferences, tendencies and needs to improve customer service, said the study.
Loyalty schemes and relevant marketing are paying off. Over half of consumers feel they have received value in return for their loyalty and, consequently, are staying faithful to certain brands, according to the findings.
Andy Wood, MD of GI Insight, comments: “These findings underline the fact that loyalty programmes are the best way to capture and utilise the sort of information that enables brands to build the stronger customer relationships many of the most successful companies have seen take shape over the last few years.
“During recessionary times, economic hardship encourages ‘promiscuous’ shopping behaviour among consumers as they seek out the cheapest deals. When budgets are tight and customers more willing to shop around for bargains, companies must decide how best to secure their interests. Is precious budget to be spent protecting existing customers or poaching those of competitors?”