Customer loyalty programmes in food retailing pay off
Consumer Barometer by KPMG and IFH COLOGNE examines the use of customer loyalty programmes in food retailing
Consumer Barometer by KPMG and IFH COLOGNE
Cologne, 26th September 2023
Whether discounter, supermarket or consumer market: loyalty programmes are standard in food retailing (LEH) and meet the taste of the clientele. This is shown by the results of the latest Consumer Barometer by IFH COLOGNE and KPMG, for which around 1,000 consumers were surveyed. According to the survey, every second consumer in Germany uses a company's own customer programmes - mostly in the form of apps. The most popular sector is food retailing: 82 percent of loyalty app users use programmes from food retailers. Of these, almost half (43%) are intensive users. Functions related to offers and discounts are used the most. Emotional aspects such as entertainment and community play a rather subordinate role.
In food retailing, company loyalty programmes - whether app or customer card - are an integral part of everyday shopping. This is reason enough to take a closer look, because loyalty programmes play an important role in the entire customer journey and have a relevant impact on customer loyalty, shopping basket size and recommendations. No wonder, consumers pay particular attention to attractive offers when buying groceries.
Positive experiences along the entire customer journey
Customer programmes have a lasting positive effect on the behaviour of customers along the entire customer journey. When choosing a place to shop, around every second respondent prefers a grocer with a loyalty programme (55%). Positive effects can also be seen in the further course of the customer journey: Higher purchase frequencies (53%) and larger shopping baskets (39%). Significant advantages of customer loyalty programmes can also be seen in the after-sales process: Customer loyalty to the retailer (48 %), willingness to recommend (40 %) and fault tolerance (26 %). For intensive users, these values are even ten percentage points higher on average.
Clear potential for personalisation
Users of loyalty programmes currently have one interest above all: To receive information about offers and thus save money. Almost all respondents prefer apps that offer them benefits in the form of discounts or bonus points (94 percent). However, there is still potential for development in the food retail sector - because customers, especially those who regularly use loyalty programmes, also want personalised offers. However, data sovereignty is very important to them. If retailers manage to respond more to individual customer preferences, the intensity of use and the number of users can be increased.
Loyalty programmes are indispensable for retailers today. Consumers expect them as part of the personal approach and the ever closer relationship between consumer and retailer. For them, the financial benefit is clearly the focus at the moment. However, I expect loyalty programmes to become more individualised, ultimately bringing customers not only financial benefits but increasingly helping them to make informed and responsible decisions.
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About the Consumer Barometer
The Consumer Barometer by IFH KÖLN and KPMG highlights current developments, trends and drivers in the retail and consumer goods market. The topic "Loyalty Apps" was chosen for this edition. Around 1,000 consumers from Germany were surveyed online for the study in spring 2023. This deep dive focuses on food retailing.
Press contact
Deputy Head Corporate Communications
KPMG AG Wirtschaftsprüfungsgesellschaft
T +49 89 9282 1722
creisbeck@kpmg.com