Younger customers more likely to shun loyalty schemes

Younger customers are more likely to shun loyalty schemes, despite struggling financially, but willing to hand over their data in exchange for personalised deals, according to new research by the TWC.

The report revealed loyalty schemes having a higher uptake amongst older shoppers with 33% of those aged 55+ claiming to be a member of such a scheme, versus 7% of those aged 18-34.

Despite this, 66% of those aged 18-34 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 millennials (aged 25+) look for the best deals on everyday food items whilst only 29% of Boomers (aged 55+) agreed that they do this.

READ MORE: Tesco launches Clubcard Pay+ to 20m customers

“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,” TWC communications director Sarah Coleman said.

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

Coleman added: “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 18–34-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.”

Click here to sign up to Grocery Gazette’s free daily email newsletter

FinanceMarketing

RELATED POSTS

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.

Menu

SUBSCRIBE TO OUR NEWSLETTER

Sign up to our daily newsletter to get all the latest retail tech news and insights direct to your inbox.

  • This field is for validation purposes and should be left unchanged.