A study has revealed that loyalty reward schemes increased the retailer’s average basket value by over 120%. Extolling not only the benefits of the increase in spending, the retailers polled also revealed that they saw an increase in store visits by over 185%.
Trusted Loyalty Partners, polled 528 representatives from retailers around the UK as part of the research. All respondents were polled on their use of loyalty schemes, the results they saw following the implementation and their overall thoughts on the schemes.
Initially, all respondents were asked to indicate whether they have ever had loyalty scheme in place. The majority of retailers (78%) revealed that they have implemented a loyalty scheme, with only 22% stating that they have never had a loyalty scheme in place.
63% of respondents indicated that they did think loyalty schemes were a successful method of driving footfall to their stores.
The same participants were then asked to disclose any change in basket spend that they experienced by using loyalty reward schemes. Researchers compiled the results to reveal that the average basket spend increased by 120%. Only 4% of respondents revealed that they either did not see an increase or experienced a decrease in the average basket value as a result of a loyalty schemes.
A number of retailers (71%) revealed that they had seen an increase in footfall since launching loyalty schemes. When asked to detail how much of an increase they had experience, the average percentage provided was revealed to be 185%.
Chris Heather, director at Trusted Loyalty Partners said: “It’s great to see that so many retailers are living proof of the benefits which we are always speaking about when discussing the rewards of putting a loyalty scheme in place. We believe that this is still a largely untapped area, with potential to be really beneficial to both retailers and to those taking part in the reward scheme.”
He continued: “We hope that more retailers open up to the possibilities created by loyalty schemes. It’s a safe and effective strategy to not only encourage shoppers into your store but also to increase their average basket spend value.”