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Shoppers are switching to mobile phone loyalty schemes

Published:  31 October, 2013

Shoppers are now using more loyalty schemes through their mobile phones than they are using traditional card schemes kept in their wallets and purses.

The research, released today by  CloudZync, looked at the spending behaviour of 2,000 consumers and found that whilst the average consumer may have four traditional loyalty cards they are able to access six further loyalty schemes on their phones.

Electrical retailers are currently making the most of this new sales opportunity with almost two thirds (62%) of consumers saying they access at least one loyalty scheme for an electrical store over their phone, followed by hairdressers (43%) and clothes stores (38%).

Supermarkets still dominate the use of traditional loyalty cards with 92% per cent of people polled say they regularly use at least one loyalty card for a grocery store, followed by coffee shops (51%) and pharmacies (51%)

But supermarkets are being slow in developing mobile versions of their card schemes with only a third (36%) of people accessing supermarket schemes through phones, dropping to 33% for coffee shops and 27%.

CloudZync is the company behind the smart mobile wallet Zwallet, that can 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 £4billion worth of loyalty card points over the past year.

But £150million points remained unclaimed as consumers simply didn't know how to redeem them.

The main issue stopping people from signing up to loyalty schemes is that they already have too many cards in their pocket or purse.

Andrew Smith, co-founder 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."