Fashion retailers are “playing catch-up on loyalty” with UK consumers significantly more likely to remain loyal to supermarkets than any other type of brand, new data from digital gifting platform Prezzee shows.
It said 56% of consumers say they’re loyal to their favourite supermarket and will remain so. But while fashion retailers beat restaurants, telecoms providers and pubs, they lag supermarkets on 32%.
Reward points are highlighted as a key reason why consumers are loyal to supermarkets, with over a third (37%) of respondents citing them as the incentive they value most. By comparison, just 15% value discount vouchers the most, and only 4% appreciate partner rewards most highly.
Attitudes to loyalty vary significantly between the youngest and oldest demographics but poor customer service and quality of products are the two main issues that will test a consumer’s loyalty whatever their age, with 56% and 54% of respondents citing those factors, respectively.
Looking in more detail at loyalty in relation to fashion brands, Prezzee said that while 32% of UK consumers say they’re loyal to fashion retailers, only 25% state that they’re likely to remain loyal to such brands.
And when asked what would increase their loyalty to fashion labels, 39% said cheaper standard pricing while the same percentage said higher-quality goods. A points-based loyalty system would be appealing to 34% while 25% said sales or deals that take prices below other brands for a signposted timeline is the way to go. And 11% like the idea of a ‘punch card’ offer such as buy nine, get the 10th item free.
James Malia, European president and head of growth at Prezzee, said: “Loyalty is hard to find, but for those that get it right, the rewards are significant. Our data clearly highlights that, in the UK at least, it’s supermarkets that are leading the way. Thankfully there are plenty of options for brands to build loyalty and learn from the approaches supermarkets are taking and apply them to their own prospective customer base.
“Consumers appreciate deals, but they’re less responsive to traditional discounts in loyalty programmes. Instead, they favour points-based systems that translate into tangible rewards, providing a sense of immediate gratification, as well as a reason to return.
“This subtle psychological difference suggests that offering a genuine ‘thank you’ in the form of something to spend resonates more deeply than a standard discount and those looking to build loyalty should consider the different options available.”
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