8m shoppers don't get any value from their loyalty cards

21 August 2013

Eight million UK shoppers have reported using their loyalty cards less often than they did a year ago, according to a survey by WorldPay.

In a major blow to retailers operating loyalty schemes – such as Tesco with its Clubcard or the Sainsbury's Nectar card – almost a third of consumers said they weren't getting any value from their loyalty card.

The same proportion had completely forgotten to take their loyalty card with them when they went shopping.

WorldPay found that 75% of shoppers would like loyalty schemes to be linked to their payment card so that they can be automatically rewarded for purchases, while 21% would like to see the functionality of their loyalty card stored on a smartphone app.

The survey also identified an appetite for seeing the end of printed reward vouchers among younger shoppers. Just over a quarter of 16 to 24-year-old shoppers said they would prefer to receive them by text and 21% through a mobile app instead.

However, more than half of consumers aged 25-64 said they'd rather stick with printed vouchers.

Ron Kalifa, deputy chairman at WorldPay, said: "Our research shows that shoppers are starting to lose patience with loyalty schemes as expectations of the ease and speed of payments increase."

Despite usage declining, nine out of 10 shoppers still use a loyalty card, with the Tesco Clubcard being most popular (68%), followed by the Nectar card (59%) and Boots Advantage Card (48%).

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