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.
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“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.”
