The battle for loyalty

Clubcard. Nectar. Prime. With 94% of the UK using at least one supermarket Loyalty scheme* to grab discounts and a host of other benefits, we are all now chasing that buzz that Loyalty cards are increasingly offer. Over 20 million households use a Tesco Clubcard and more than 80% of sales are made using it**.

Loyalty Cards are not just for Supermarkets

Although Loyalty may feel like the domain of larger supermarkets, 1 in 8 shopping trips in the Convenience channel involve a loyalty card - a number that’s growing***. This increases to 1 in 5 in Managed Convenience Top Up shops***, so it is no longer something that can be ignored by smaller stores.

In a Cost of Living context, shoppers are prioritising Loyalty cards as a way of saving money and we expect this to continue for the foreseeable future.

While a full on loyalty scheme might be something that feels daunting to take on, launch and manage ongoing, there are a number of simple ways in which you can foster loyalty to retain your existing shoppers, while also picking up some new ones into the bargain.

Top 5 tips for loyalty in Convenience

Here are our top tips for driving loyalty in Convenience stores: 

1. Deliver exceptional customer service - Train staff to be friendly, helpful, and attentive. A positive interaction can leave a lasting impression and encourage customers to return.
2. Launch a loyalty programme - Implement a rewards program where customers earn points for every purchase and can redeem them for discounts or free items. This not only incentivises repeat business but also fosters a sense of appreciation.
3. Engage with the local community - Host local events or sponsor community activities. This creates a sense of belonging and positions the store as a valuable part of the neighbourhood.
4. Offer a variety of services - Additional services like home delivery, being able to receive or return goods bought online, or receiving charitable donations can help make busy shoppers’ lives easier. A store that offers convenience beyond just in-store shopping can encourage customers to return to the store.
5. Seek feedback to improve - Encourage customers to provide feedback and make improvements based on their suggestions. Showing that you value their opinions can build trust and loyalty.

Loyalty is currently trending and if you’re not looking to capitalise on it, your local competition will.

Sources:

* The Grocer Loyalty Survey May 2024

** Nielsen IQ Homescan November 2024

*** Lumina Intelligence CTP September 2024