Loyalty clubs ‘failing on insight’

The vast majority of brands which run loyalty schemes are failing to use the insight gleaned from their data, according to a new survey which claims most send out irrelevant and useless offers.
The “Loyalty Frequency: Who’s Tuning In” benchmarking report from GI Insight shows there is much room for improvement across the board, particularly in sectors where there is a high volume of purchases.
By far the most effective schemes are run by supermarkets – perhaps unsurprisingly given the fact that they have a rich history in data gathering – but the likes of fashion retailers, mobile phone firms, banks, airlines, health clubs and petrol outlets score badly.
The report states: “Supermarket are far ahead in terms of analysing customers data and sending them offers they want, with 71% of consumers who are members of a supermarket loyalty scheme saying their brand analyses their needs correctly and sends them offers that are relevant shoppers.”
None of the categories outside the supermarket sector has even half the proportion of members that players in that industry do, but multiple brand schemes, such as Nectar, and chemist/ beauty/ health retailer programmes come the closest, with just under 40% of consumers belonging to such schemes.
The study added: “Membership can and should be expanded in a number of categories with frequent and middle or low cost transactions, and brands need to do a considerably better job of leveraging the insight gleaned from all the data that feeds into a loyalty scheme – particularly in marketplaces where there is a high volume of purchases and other interactions.”
How did your sector fair? Check out the full report here >

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