A points-obsessed nation: 13 million are clueless on the value of their loyalty cards, with 30 million signed up to more than three schemes.
But £6 billion sits gathering dust in loyalty accounts and 12.8 million Brits regularly forget their loyalty cards and slam the system as "inefficient".
New research among more than 2,000 UK adults by supermarket app Ubamarket reveals shoppers' love-hate relationship with loyalty cards.
Over 30 million UK adults (59%) have signed up to more than three loyalty cards with different retailers and 46% of consumers – 23.62 million people – said they will choose a retailer based on the points they can earn through a store's loyalty scheme. 30% of shoppers say they have lost track of how many loyalty schemes they are a member of with 25% of UK adults saying they have no idea how many points they have on their loyalty cards or how they would find out.
£6 billion sits unclaimed in loyalty accounts with the UK's leading retailers and 12.83 million people regularly forget their loyalty cards, causing frustration at that the "inefficient" card-based system.
21% of shoppers across the UK – 10.78 million people – say they prefer to shop online so they can track their spend and automatically receive loyalty points, with this figure rising to 35% among those aged between 18 and 34.
The white label supermarket app commissioned a survey among more than 2,000 UK adults, uncovering that the majority of consumers (59%) are signed up to at least three different loyalty schemes. Moreover, almost half (46%) of shoppers said they choose to buy items in certain shops over others based on the points they can earn through a store's loyalty scheme.
Consumers committed yet clueless on points collected
However, despite the significant impact loyalty schemes evidently have on consumers' spending habits, Ubamarket's nationally-representative study uncovered mass frustration with the current system. Three tenths (30%) of UK adults – the equivalent of 15.4 million people – say they have lost track of how many loyalty schemes they are a member of, while 25% said they have no idea how many points they have on their loyalty cards and would not know how to find out. The findings come as research shows that a massive £6 billion sits unclaimed in loyalty accounts with the UK's leading retailers.
Clumsy loyalty systems push shoppers out of store and online
Furthermore, a huge number of people also stated that they are frustrated with card-based loyalty schemes. With a quarter of shoppers (25%, or 12.83 million people) saying they regularly forget their loyalty card, consumers have claimed that the current system is "inefficient" and needs changing – this figure jumps to 38% among millennials.
As a result of the inefficiencies of in-store loyalty schemes, 21% of UK adults said they are opting to shop online so they can easily track their spend and receive loyalty points automatically. Millennials are even more likely to turn away from in-store shopping, with 35% of those aged between 18 and 34 saying they prefer to go online for the loyalty benefits it provides.
Will Broome, Founder and CEO of Ubamarket, commented on the findings:
"Loyalty schemes have a huge amount to offer consumers – that is why so many of us are signed up to vast numbers of them and are drawn to certain retailers over others. But the way people collect, track and reclaim points through these schemes is horribly out-dated.
"Shopping apps with in-built loyalty schemes are an easy way to overcome these issues. No more worrying about if you've remembered your loyalty card and no more being left in the dark about how many points you have; in-app loyalty means you will effortlessly amass and reclaim loyalty benefits, which is why retailers must move towards this solution."