Following the surge in smartphone usage across the country, consumers now have access to more loyalty schemes on mobile devices than they do in their physical wallets, reveals a study by CloudZync.
The research, which polled 2000 consumers, highlights that while our wallets are still bulging with an average of four traditional loyalty cards, people now have access to six loyalty schemes on their phones.
Key findings from the report shows;
• Consumers access an average of 6 loyalty schemes through their mobile devices, compared to just 4 traditional loyalty cards in their wallets
• The average loyalty card user has access to £83 worth of redeemable points or vouchers across all of their loyalty cards
• Despite the number of loyalty schemes available to them, Brits are still missing out on a whopping £150 million in unclaimed points
Tech-savvy electrical retailers are leading the mobile revolution as almost two thirds (62 per cent) of consumers say that they access at least one loyalty scheme for electrical stores over their phones, followed by hairdressers (43 per cent) and clothes stores (38 per cent).
When looking at traditional loyalty card usage, it is no surprise that supermarkets lead the way, as 92 per cent of people claim that they regularly use at least one loyalty card for a grocery store, followed by coffee shops (51 per cent) and pharmacies (51 per cent) [See table below].
However, these leaders in traditional loyalty schemes are lagging behind when it comes to mobile, as just a third (36 per cent) of people access supermarket schemes through the device in their pocket, dropping to 33 per cent for coffee shops and 27 per cent for pharmacies.
The study was commissioned by CloudZync, creator of smart mobile wallet Zwallet, to provide retailers with insight into consumer attitudes towards loyalty schemes. The research also found that loyalty card users have on average £83 worth of redeemable points across their loyalty cards at any point in time, and UK shoppers cashed in on over £4billion1 worth of loyalty card points over the past year. But despite this, £150million2 points remained unclaimed as consumers simply didn’t know how to redeem them. The main reasons why shoppers aren’t claiming freebies or discounts is because they feel it takes too long to start earning benefits from loyalty schemes (27 per cent), followed by forgetting to add on points because they don’t carry their cards in their wallets (18 per cent), and 14 per cent of shoppers say that they don’t remember to add on their points even when paying in-store.
The main issue stopping people from signing up to loyalty schemes seems to be their already bulging wallets, with a third (33 per cent) of consumers saying that the main reason why they don’t register is because they already have too many cards in their wallets, and 14 per cent don’t like having to send off paperwork to join the loyalty scheme.
Andrew Smith, Co-Founder and CTO of CloudZync, said: “We are a nation of bargain hunters, and the research shows that Brits are cashing in on loyalty schemes across the board. But whereas we have previously been limited by the number of cards we can fit into our wallets, the boom in mobile devices means that we can now access even more loyalty programmes via our phones. While it’s clear that traditional cards are still doing well in many sectors, retailers that don’t embrace smartphones and tablets as part of their loyalty schemes risk being left behind by those businesses that see the opportunity these devices offer to engage consumers in new ways. Mobile gives retailers a platform through which they can build more personal relationships with customers while providing them with access to offers and promotions in a more convenient way, so they never miss out.”
Consumers that regularly use 1 or more physical loyalty cards or access loyalty schemes via a mobile device, by retail sector (Source: OnePoll research commissioned by CloudZync)
The research follows the launch of CloudZync’s mobile wallet, Zwallet, which allows people to integrate all of their existing loyalty cards straight into one app, redeem points, gain exclusive cashback offers, and pay for items straight from their phones. CloudZync’s Zwallet launched in Greater London in July 2013 and already has 280 merchants on board. Consumers can download the app for free from the Apple App Store and Windows Phone Store, and merchants can download the Zwallet Terminal app to start using the service from the Apple App Store and Windows Phone Store.