An interesting report on the BBC yesterday, ‘Shoppers ‘drowning in a sea of loyalty cards.’ 

To quickly summarise:

89% of Brits belong to a scheme
Only Finland have a higher membership rate
Brits belong to an average of 3.6 schemes each
More than half would choose a retailer with a loyalty scheme

There’s obviously some disconnect if you compare the numbers of registered users versus how many would use choose a vendor over another based on loyalty. 

This suggests Britons simply like the idea of signing up rather than actually using them – a ‘tick-box’ exercise – but the schemes are not personalised enough to keep them engaged. Mike Watkins, Nielsen’s UK head of retailer and business insight.

So how do you create a loyalty scheme that connects with an audience?

1. Keep it Simple.

Make it clear. Gain a point for a service received or a product bought. One haircut = one point. One meal = one point. Don’t just make the collection clear – make the reward clear too. 10 points = free haircut. 30 points = free meal.

2. Use a tier system.

Frequent fliers will be au fait with a tier point system. The higher your tier, the better the rewards. Think lounge access and priority security when flying in economy providing you’re high enough in their tier scheme. The same can apply to everyday businesses. The more frequent patrons receive a higher discount as they progress through your scheme.

3. Charge for the VIP club.

If people are willing to part with their money to join your scheme – they will return. Think ASOS Premier, Amazon Prime and the like.

How do you easily manage these schemes?

It’s very difficult keeping tracks on an individual’s consumer spend, but it becomes a lot easier when you have an app for your business.

Your employees can enter pin codes to unlock loyalty on a user’s phone or scan QR codes dependent on spend. The more the customer spends the more they go progress on the leaderboard. You can then unlock certain features if they become a paid VIP member or if they’re one of your biggest spenders.

If you’re considering an app for your business and would like to see a free workable demo, go here and tell us a little bit about your business.

I was quite surprised by the number one loyalty scheme in the UK. It was a toss up between Tesco & Nectar and I would have placed my money with Tesco. It’s personal preference but I find their redemptions more rewarding and easier to convert into other schemes. Alas, I would have lost mentioned pounds.

  1. Nectar – 19 million
  2. Boots – 17.9 million
  3. Tesco – 16 million
  4. BA – 7 million
  5. Morrisons – 6 million
  6. Virgin Atlantic – 2 million
  7. Lufthansa – 1.8 million
  8. Marriott – 1.2 million
  9. InterContinental – 1.2 million
  10. Starwood – 1 million

Mike

ADDRESSS

78 York Street, Marylebone,
London, W1H 1DP

PHONE

+44 (0)20 7859 4420

WEB

Email : [email protected]
Web : theappdesigner.co.uk

Privacy Preference Center

Google Analytics

__utma Cookie
A persistent cookie - remains on a computer, unless it expires or the cookie cache is cleared. It tracks visitors. Metrics associated with the Google __utma cookie include: first visit (unique visit), last visit (returning visit). This also includes Days and Visits to purchase calculations which afford ecommerce websites with data intelligence around purchasing sales funnels.

__utmb Cookie & __utmc Cookie
These cookies work in tandem to calculate visit length. Google __utmb cookie demarks the exact arrival time, then Google __utmc registers the precise exit time of the user.

Because __utmb counts entrance visits, it is a session cookie, and expires at the end of the session, e.g. when the user leaves the page. A timestamp of 30 minutes must pass before Google cookie __utmc expires. Given__utmc cannot tell if a browser or website session ends. Therefore, if no new page view is recorded in 30 minutes the cookie is expired.

This is a standard 'grace period' in web analytics. Ominture and WebTrends among many others follow the same procedure.

__utmz Cookie
Cookie __utmz monitors the HTTP Referrer and notes where a visitor arrived from, with the referrer siloed into type (Search engine (organic or cpc), direct, social and unaccounted). From the HTTP Referrer the __utmz Cookie also registers, what keyword generated the visit plus geolocation data.

This cookie lasts six months. In tracking terms this Cookie is perhaps the most important as it will tell you about your traffic and help with conversion information such as what source / medium / keyword to attribute for a Goal Conversion.

__utmv Cookie
Google __utmv Cookie lasts "forever". It is a persistant cookie. It is used for segmentation, data experimentation and the __utmv works hand in hand with the __utmz cookie to improve cookie targeting capabilities.

__utma Cookie, __utmb Cookie, __utmc Cookie, __utmv Cookie, __utmz Cookie

ADDRESSS

78 York Street, Marylebone,
London, W1H 1DP

PHONE

+44 (0)20 7859 4420

WEB

Email : [email protected]
Web : theappdesigner.co.uk

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

ADDRESSS

78 York Street, Marylebone,
London, W1H 1DP

PHONE

+44 (0)20 7859 4420

WEB

Email : [email protected]
Web : theappdesigner.co.uk

Are you sure?

By disagreeing you will no longer have access to our site and will be logged out.

ADDRESSS

78 York Street, Marylebone,
London, W1H 1DP

PHONE

+44 (0)20 7859 4420

WEB

Email : [email protected]
Web : theappdesigner.co.uk