Supermarket loyalty schemes will be key for customer retention in the UK during the cost-of-living crisis, according to analysts at GlobalData.
This comes as soaring inflation rates are squeezing consumers’ budgets in the UK, as a result, many shoppers are choosing to shop at supermarkets that are perceived as the best value for money.
The leading data and analytics company noted that discounts are the most appealing reward to customers shopping at retailers, with 19.7% agreeing that such promotions are important to them as rewards when they consider collecting loyalty card points.
As the cost-of-living crisis worsens, loyalty schemes will become integral for customer retention and engagement.
Furthermore, GlobalData highlighted the importance of price match schemes, stating that grocers must raise awareness of it through offline marketing such as in-store signages, as well as promotions on their website.
“There is an opportunity for retailers to complement their traditional price-cut investments and use digital tools to enhance consumer’s in-store experience to achieve next-level personalisation,” GlobalData senior food and drink analyst Nidhi Chauhan said.
“Proactive strategies like this can reinforce long-term brand loyalty, particularly when times are hard, and people may be more conscious of where they choose to shop.”
Chauhan added: “To stand out in the sea of competitors, grocers must bring something new to the table that customers can’t find elsewhere. This could be the ability to exchange points for discounts or money off activities like the Lidl Plus card, that makes people want to return to cash in on their efforts.
“The benefits and offers provided need to be compelling and unique enough to ensure shoppers choose a particular retailer or promotion, as even with growing consumer choice, personalised marketing communications and diverse offerings, brand loyalty is as important for consumers as it is for brands.”