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News in-depth: A third of young Britons not signed up to a loyalty scheme
7 Feb 2012

A third of young Britons are not signed up to any loyalty scheme, according to a new study.

ICM Research has published the results of a new survey which shows that 86 per cent of UK consumers have signed up for at least one loyalty programme, while 40 per cent are members of more than three. 

However, it appears that young shoppers aged between 18 and 24 years-old are not as keen on loyalty schemes, with just two thirds of this age group signing up for the programmes.

Jamie Belnikoff, project director at ICM, suggested that retailers will need to tailor their schemes to specific audience members in order to attract younger consumers.

He said: "Relevance is fundamental. Unsurprisingly these days, near-cash rewards appear more compelling than ever. But it's fascinating to observe that what people find relevant depends on the sector the business is in.

"Loyalty scheme operators would be well-advised to research both the category and mix of rewards and then refresh or even re-launch their programmes where necessary."

Mr Belnikoff added that schemes such as the Tesco ClubCard, Boots Advantage Card and Nectar Card are all successful as they offer small guaranteed rewards rather than a chance to win a 'big ticket' prize.

This was confirmed in the survey, with over three-quarters (77 per cent) of respondents revealing they preferred programmes which give piecemeal rewards instead of the potential to claim larger prizes.

Companies should also look to customise their rewards based on which sector they operate in, with the study showing that the majority of mobile phone customers would prefer a prize which is not related to their device.

Overall, 48 per cent of Britons claimed they would prefer to receive a store vouchers from their mobile phone operator, while just a third (32 per cent) would opt for free minutes, texts or mobile internet.

In contrast, 70 per cent of supermarket shoppers would prefer offers or discounts to spend in-store, while just 18 per cent wanted a voucher for another High Street store.

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