Adyen research: Retailers must improve rewards programmes

Rewards programmes are failing to drive customer loyalty for retailers, according to research from Adyen.

The PayTech venture polled more than 2,000 consumers in the UK.

55% said that rewards programmes do not offer things they actually want and that customer experience holds almost equal influence when it comes to loyalty (48%).

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62% feel that retailers need to improve how they reward their shoppers.

“Every customer counts – especially in the context of the pandemic. Anything retailers can do to keep customers coming back for more is worth exploring,” says Myles Dawson, UK Managing Director, Adyen.

“But it goes beyond a loyalty or rewards scheme. The customer experience, both online and in store really matters”

“Making it as easy as possible to shop is equally as important as other incentives. And, if you do go down the rewards route, a one-size-fits-all approach rarely delivers. You must make the effort to understand your customers and offer something they really want.”

60% of consumers would be more loyal to retailers that let them buy out of stock items in-store and have them shipped directly to their home. And 53% would veer towards those brands who let them buy online and return in-store.

Dawson adds: “The high street is under increasing competition from online retailers who put convenience and usability at the centre of their customer experience.”

“To succeed now, businesses must harness the best of their physical and digital worlds to create amazing experiences. This will increase conversions and also raise the prospects of customer loyalty.

He concludes: “For those consumers that want loyalty schemes, it must be as seamless and easy as possible.”

“61% of respondents were more likely to shop with a retailer that linked their loyalty scheme to the payment card. By doing this, businesses can track customer buying behaviour and shopper data which lets them offer a more personalised shopping experience.”