Most Brits are banking on loyalty programmes to squeeze more on everyday spending during the cost-of-living crisis, says a new study, highlighting how loyalty programmes are playing an important part to help consumers during this challenging time.
According to behavioural science study by IAG Loyalty based on 1,000 people, 92 per cent of Britons are relying on loyalty programmes to give an extra boost to their everyday spending during the cost-of-living crisis. More than 50 per cent said they’re actively looking for new ways to collect points and maximise the return when they spend money, with 20 per cent saying they were inclined to spend more with brands with loyalty programmes.
Rob McDonald, chief commercial officer of IAG Loyalty, says: “As household budgets tighten, people are looking for help to stretch their income and save for the experiences that can feel out of reach, and brands are responding by moving loyalty programmes to the top of their business strategy.
“We’re seeing more and more brands using the loyalty lever – from coffee to trainers, from the high street to streaming services – all competing in the same space. In these challenging times when money is tighter than ever, brands are in a unique position to demonstrate the value they can offer by making customers’ money go further.
"Brands have a wealth of information on their loyal customers which gives them unique insight to create rewarding offers and experiences that ensure those customers get the most from their spend.”
When asked to select three things they would want to prioritise during this crisis, 65 per cent of respondents chose treats, followed by their annual summer/winter holiday (53 per cent), then birthdays (42 per cent), streaming services (40 per cent) and live entertainment (34 per cent).
When spending loyalty points, 80 per cent of people consider themselves rational decision makers and 20 per cent emotional decision makers.
