Customer loyalty in retail: the importance of loyalty programmes

Customer loyalty programmes are the norm in retail today - whether as a physical loyalty card, an app or a combination of both. They are designed to offer customers added value in the form of loyalty points, discounts, vouchers or exclusive benefits, thus promoting customer loyalty and ultimately increasing sales.

However, loyalty programmes can be cost-intensive for retailers. Therefore, it is important to understand the target group and their needs in order to fulfil the expectations and preferences of the clientele with the programme and to offer them an attractive added value.

How do customers rate the existing loyalty programmes? Which functions are particularly important to them, what do they expect from the design of loyalty apps and what reservations do they have about using them? We answer these questions in the new edition of the Consumer Barometer.

We look at both in-house and cross-company programmes such as PAYBACK and DeutschlandCard. A representative sample of 1,032 consumers were surveyed for the study.

• 80 per cent of respondents use customer programmes. 
• 97 percent of users name benefits as the most important function of customer programmes.
• 45% consider a loyalty programme to be standard in food retailing.
• 54% of non-users can imagine using a loyalty programme if their personal pain points (e.g. concern about misuse of user data or traceability of purchasing behaviour) are eliminated.

It also shows that cross-company customer programmes are currently more widespread than in-house programmes. However, customers are very open to proprietary programmes, especially from retailers for everyday goods. 

Own programmes offer retailers several advantages: a higher intensity of use and, above all, sovereignty over user data. The latter helps them to make customised offers, build stronger customer loyalty and differentiate themselves from the competition.

The Consumer Barometer by IFH KÖLN and KPMG highlights current developments, trends and drivers in the retail and consumer goods market three times a year. Don't want to miss an issue? Then subscribe to the Consumer Barometer here.