Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Loyalty to Retailers - UK - November 2014

“Whilst the consumer has long sought to be treated as an individual and not simply as a collective, there remains an opportunity for retailers to further tailor their offerings to their customers’ individual needs. Further development of digital technology, such as smartphone apps, is likely to make this more possible, as it will allow retailers to engage more directly with their shopper and create a truly personalised service.”
– Jack Duckett, Consumer Lifestyles Analyst

This report discusses the following key topics:

  • Personalisation key to supermarket loyalty scheme development
  • Opportunity to further expand click-and-collect services
  • Targeting men with loyalty schemes

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Abbreviations
      • Executive Summary

          • Market drivers
            • Companies, brands and innovation
              • Convenience dominates choice of supermarket
                • Figure 1: Factors influencing loyalty in the supermarket category, August 2014
              • Consumers seek targeted offers
                • Figure 2: Consumer expectations in return for loyalty, August 2014
              • Regular sales a key draw in the clothing and department stores segment
                • Figure 3: Factors influencing loyalty in the department stores and clothing retailers category, August 2014
              • Product range influences three in five shoppers in beauty and personal care sector
                • Figure 4: Factors influencing loyalty in the beauty and personal care category, August 2014
              • Opportunity for DIY retailers to move onto the high street
                • Figure 5: Factors influencing loyalty in the DIY/homewares category, August 2014
              • 67% save up loyalty points for big-ticket purchases
                • Figure 6: Attitudes towards loyalty schemes, August 2014
              • What we think
              • Issues and Insights

                  • Personalisation key to supermarket loyalty scheme development
                    • The facts
                      • The implications
                        • Opportunity to further expand click-and-collect services
                          • The facts
                            • The implications
                              • Targeting men with loyalty schemes
                                • The facts
                                  • The implications
                                  • Trend Application

                                      • Trend: Life Hacking
                                        • Trend: Make it Mine
                                          • Trend: Let’s Make a Deal
                                          • Market Drivers

                                            • Key points
                                              • Opportunity to target older consumer with tailored loyalty offerings
                                                • Figure 7: Trends in the age structure of the UK population, 2009-19
                                              • Households set to get smaller
                                                • Figure 8: UK households, by size, 2009-19
                                              • Decline in food prices unsustainable
                                                • Figure 9: Consumer Price Inflation, percentage change over 12 months ending August 2014
                                              • Disposable income on the up
                                                • Figure 10: Trends in how respondents would describe their financial situation, June 2009-June 2014
                                              • Space race remains heated
                                                • Figure 11: Number of outlets, 2008 and 2014
                                              • Nearly three quarters of consumers own a smartphone
                                                • Figure 12: Technology products personally owned, June 2014
                                            • Who’s Innovating?

                                              • Key points
                                                • Morrisons pledges to match discounters
                                                  • Figure 13: Morrisons’ Match & More card, October 2014
                                                • Using social media to boost engagement
                                                  • Figure 14: Kipling Friends programme, October 2014
                                                • Gamification helps drive engagement
                                                  • Digital loyalty schemes begin to take off
                                                    • Click-and-collect: Rewarding supermarket loyalty with convenience
                                                      • Figure 15: Waitrose Click-and-collect tube station lockers, September 2014
                                                    • Competitive pricing
                                                      • Figure 16: Aldi ‘Like Brands, Only Cheaper’ campaign, 2014
                                                    • Supermarket retailers embrace healthy living
                                                    • Brand Perceptions and Social Media

                                                      • Brand perceptions
                                                        • Key brand metrics
                                                          • Figure 17: Key brand metrics, August 2014
                                                        • Brand map
                                                            • Figure 18: Attitudes towards and usage of brands in the retail sector, August 2014
                                                          • Correspondence analysis
                                                            • Brand attitudes
                                                              • Figure 19: Attitudes, by retailer, August 2014
                                                            • Brand personality
                                                              • Figure 20: Retailer personality – macro image, August 2014
                                                              • Figure 21: Retailer personality – micro image, August 2014
                                                            • Brand usage
                                                              • Figure 22: Retailer usage, August 2014
                                                            • Brand experience
                                                              • Figure 23: Retailer experience, August 2014
                                                            • Brand loyalty
                                                              • Figure 24: Retailer loyalty metrics, August 2014
                                                              • Figure 25: Retailer loyalty index, August 2014
                                                              • Figure 26: Retailer loyalty index versus regular usage, August 2014
                                                            • Social media and online buzz
                                                              • Social media metrics
                                                                • Figure 27: Social media metrics of selected retailers, October 2014
                                                              • Online mentions
                                                                • Figure 28: Share of conversation of top six retailers, by mentions, 29 September 2013-27 September 2014
                                                                • Figure 29: Share of conversation of next seven retailers, by mentions, 29 September 2013-27 September 2014
                                                              • Topics of discussion
                                                                • Figure 30: Topics of discussion around selected retailers, 29 September 2013-27 September 2014
                                                                • Figure 31: Twitter handle mentions around competitions versus Twitter handles not including competitions, 29 September 2013-27 September 2014
                                                                • Figure 32: Brand share of conversation around low prices, 29 September 2013-27 September 2014
                                                                • Figure 33: Brand share of conversation around loyalty schemes, 29 September 2013-27 September 2014
                                                            • The Consumer – Usage of Supermarkets

                                                              • Key points
                                                                • Four in five do their main shop at a Big Four grocer
                                                                  • Figure 34: Usage of grocery retailers for main/weekly shop and additional shopping, August 2014
                                                                • Shift towards grocery discounters
                                                                  • Figure 35: Length of usage of most popular main grocery stores/supermarkets, August 2014
                                                                • Consumers branch out when it comes to top-up shopping
                                                                • The Consumer – Loyalty in the Supermarket Sector

                                                                  • Key points
                                                                    • Convenience dominates choice of supermarket
                                                                      • Figure 36: Factors influencing loyalty in the supermarket category, August 2014
                                                                    • Discount grocers emerge as the cheapest option
                                                                      • Figure 37: Influence of “It is the cheapest option”, by retailer selected as main weekly/monthly shop, August 2014
                                                                    • Older consumers more likely to be swayed by loyalty cards
                                                                      • Figure 38: Proportion of consumers influenced by whether or not the supermarket has a good loyalty scheme/card, by gender and age, August 2014
                                                                    • Own-label lines influence 43%
                                                                      • Figure 39: Proportion of consumers influenced where to shop by a retailer’s own-label range, by retailer used for main weekly/monthly shop, August 2104
                                                                      • Figure 40: Example of Aldi packaging and major brand equivalent, 2014
                                                                  • The Consumer – Loyalty Expectations of Supermarkets

                                                                    • Key points
                                                                      • Consumers seek targeted offers
                                                                        • Figure 41: Consumer expectations in return for loyalty, August 2014
                                                                      • Consumers seek to feel more involved
                                                                        • Lower expectations amongst discount grocery store users
                                                                          • Figure 42: Consumer expectations in return for loyalty, by selected main grocery retailer, August 2014
                                                                      • The Consumer – Reasons for Changing Supermarket

                                                                        • Key points
                                                                          • Lower prices could drive consumers to alternative retailers
                                                                            • Figure 43: Reasons consumers would consider switching away from their preferred main supermarket/grocery store, August 2014
                                                                          • Some 36% would consider a more conveniently located alternative
                                                                            • Loyalty to discount grocers driven by low prices and quality
                                                                              • Figure 44: Reasons consumers would consider switching away from their preferred main supermarket/grocery store, by main supermarket, August 2014
                                                                          • The Consumer – Membership of Loyalty Schemes

                                                                            • Key points
                                                                              • Membership of loyalty schemes exceeds nine in 10
                                                                                • Figure 45: Membership of loyalty schemes, August 2014
                                                                              • Women significantly bigger users of loyalty cards than men
                                                                                • Figure 46: Membership of loyalty schemes, by gender, August 2014
                                                                              • Three quarters of all adults have Tesco Clubcard
                                                                                • Nectar cuts points in half
                                                                                  • Figure 47: Nectar Card, October 2014
                                                                                • Boots and Superdrug loyalty schemes register high penetration
                                                                                  • my John Lewis scheme, a victim of its own success?
                                                                                    • Figure 48: myWaitrose and my John Lewis loyalty cards, September 2014
                                                                                • The Consumer – Loyalty in the Department Stores and Clothing Retailers Market

                                                                                  • Key points
                                                                                    • Consumers look to bag a bargain
                                                                                      • Figure 49: Factors influencing loyalty in the department stores and clothing retailers category, August 2014
                                                                                    • Online delivery valued by over a quarter
                                                                                        • Figure 50: Proportion of consumers influenced to shop at their preferred department store/clothing retailer by its online shopping/home delivery service, August 2014
                                                                                      • Influence of marketing appears marginal
                                                                                        • Figure 51: John Lewis Christmas 2013/14 television advert
                                                                                    • The Consumer – Loyalty in the Beauty and Personal Care Market

                                                                                      • Key points
                                                                                        • Product range influences three in five shoppers
                                                                                          • Figure 52: Factors influencing loyalty in the beauty and personal care category, August 2014
                                                                                        • Loyalty cards prove popular in the beauty/personal care market
                                                                                          • Figure 53: Proportion of consumers influenced to shop at their preferred retailer by a good loyalty scheme/card, by retail sector, August 2014
                                                                                        • The Body Shop users loyal to brand’s ethical ethos
                                                                                        • The Consumer – Loyalty in the DIY/Homewares Segment

                                                                                          • Key points
                                                                                            • Opportunity for DIY retailers to move onto the high street
                                                                                              • Figure 54: Factors influencing loyalty in the DIY/homewares category, August 2014
                                                                                              • Figure 55: Argos Digital store prototype, April 2014
                                                                                            • Young adults seek online how-to guides
                                                                                              • Loyalty cards encourage three in 10 to be loyal
                                                                                                • Figure 56: Proportion of consumers influenced to shop at their preferred retailer by a good loyalty scheme/card, by retailer, August 2014
                                                                                            • The Consumer – General Attitudes towards Loyalty Initiatives

                                                                                              • Key points
                                                                                                • 67% save up loyalty points for big-ticket purchases
                                                                                                  • Figure 57: Attitudes towards loyalty schemes, August 2014
                                                                                                • The drive for instant results
                                                                                                  • Nearly half of all consumers prove less loyal since the recession
                                                                                                    • Figure 58: Agreement with the statement “Since the recession I have become less loyal to retailers”, August 2014
                                                                                                  • Patriotic Brits keen to endorse Britain
                                                                                                      • Figure 59: John Lewis ‘Never Standing Still’ campaign, May 2014
                                                                                                    • Attitudes towards customer service differ by age
                                                                                                      • Figure 60: Agreement with selected statements, by age, August 2014

                                                                                                  Companies Covered

                                                                                                  • A. S. Watson UK
                                                                                                  • Aldi Stores Ltd (UK & Ireland)
                                                                                                  • Amazon UK
                                                                                                  • Asda Group Ltd
                                                                                                  • B&Q (UK & Ireland)
                                                                                                  • Civil Aviation Authority
                                                                                                  • Google UK
                                                                                                  • Nectar
                                                                                                  • Ocado
                                                                                                  • Tesco (UK)
                                                                                                  • The Nutri Centre
                                                                                                  • Topman old
                                                                                                  • Waitrose

                                                                                                  Loyalty to Retailers - UK - November 2014

                                                                                                  US $2,478.79 (Excl.Tax)