Skint under-35s shun loyalty clubs but still crave deals

The younger the consumer is the less likely they are to sign up to a loyalty scheme, despite the fact that many struggle financially, but they are still willing to hand over their data in exchange for personalised deals.

So says a new report by new research by The Whole Sale Company (TWC) which reveals that while a third (33%) of consumers aged over 55 said they were members of at least one loyalty programme, just 7% of those aged 18 to 34 confirmed they had signed up.

Despite this, 66% of those aged 18 to 34 are happy for businesses to collect data on their spending and purchasing habits if they personalise offers better in return. The data also revealed 40% of younger consumers are struggling to meet financial ends.

As a result, younger customers are more likely to go deal hunting as 40% of look for the best deals on everyday food items compared to 29% of Baby Boomers.

TWC communications director Sarah Coleman said: “Given that younger shoppers are more likely to be struggling financially and are also more likely to be hunting for deals, surely there is an opportunity to create a loyalty proposition that resonates with these consumers?

“Of course, one of the main benefits of loyalty schemes is the data that can be collected in exchange for exclusive offers or benefits.

“Interestingly, our research showed that over half of UK adults are happy for businesses to collect data about their spending and purchasing habits in exchange for better personalisation of offers.

“This is particularly true of younger consumers, with two-thirds of 18- to 34-year-olds agreeing with this statement. Understanding the purchasing behaviour of these shoppers is critical but their loyalty is not likely to be easily won, so there must be clear benefits for participating.”

TOPICS:customer loyalty data-driven marketing loyalty scheme