Recession-weary consumers are saving £4bn a year by using loyalty cards, with customers more likely to shop at stores which offer a loyalty scheme and people living in Yorkshire top of the pile when it comes to cashing in rewards.
A study by Plastic Card Services – to mark the 30th anniversary of the long-defunct Sainsbury’s Spend & Save card – has revealed that shoppers save just over £100 a year each by using store loyalty cards. And enthusiasm is growing, with one in ten consumers saying they use them every day.
The choice has widened this month with the launch of the Asda Money credit card cashback scheme and a new loyalty current account from Marks & Spencer.
The study found that two thirds of consumers believed that the use of a loyalty scheme made them more likely to continue shopping in a particular location, and four fifths of those surveyed said that they would replace a loyalty card if they were to lose it.
Over-55s are the most likely to use loyalty cards, whereas under 25s are said to have more of an identification with a store if they hold their loyalty card. The most popular loyalty card was the Tesco Clubcard.
Rob Nicholls, managing director of Plastic Card Services, explained: “In this recent research, we found that almost one in ten card owners admit they have never cashed in their points, with shoppers in London and those aged under 25 the guiltiest of this. Meanwhile, Yorkshire folk and those aged over 55, are most likely to cash in their points regularly.
“It has been an extraordinary journey over the past three decades for the loyalty card, but this research indicates that they are well and truly here to say. In fact, despite a step towards digital media across almost every aspect of our lives, the loyalty market is one where consumers still prefer a physical product, with less than a fifth (18.9%) of respondents saying they would swap their cards for a mobile app.”
