A fifth of people never use their loyalty cards and risk missing out on an average of £257 a year, according to new research. 80% of loyalty club members say the schemes offer worthwhile savings but one in five of us don't use any form of loyalty scheme and miss out on multiple reward options, with the average saving people make using loyalty programs standing at £257 every year.
New research by Virgin Red reveals the most common bug bears on what many dub ‘not-so-loyalty schemes’ include the lengthy processes to redeem points (20%) and the frustration of points expiring before they’ve been converted to a saving or treat (20%).
The time it takes to earn enough points to make a significant saving was cited as the number one reason 43% of shoppers avoid loyalty schemes, with survey respondents claiming it takes them up to two years to redeem a reward and leads many to search for programmes that don’t have unachievable and confusing earning processes.
The research also shows how people are planning on reducing expenditure in 2022, with 41% of us focused on searching for deals and vouchers, using loyalty points (38%) and opting for budget stores and supermarkets (28%). Grocery shopping is the main concern for more than half the nation (57%), with affording toiletries coming in second (27%). Loyalty rewards are also being used on everyday treats like free coffees (20%), and 57% of us are saving up points to guarantee a holiday this year.
With inflation increasing at an all time high, loyalty currencies become even more valuable with prices staying the same so consumers can protect their cash, whilst still enjoying life. For example, the cost of savoury treats and coffees have increased but the amount of points needed to redeem these items via Virgin Red has remained the same, with no plans to increase this at the moment.
Phil Peacock, Director of Business Development at Virgin Red said: “We know there’s nothing more frustrating than difficult redemption processes and points that quickly expire, which is why Virgin Red is always looking for ways to make it easy for members to save points to spend on rewards, unique experiences and treats that go the extra mile. Virgin Red members are rewarded for their everyday spending habits and behaviour, giving them the opportunity to still get that daily coffee or take the kids to the cinema, even when times are a little bit tougher.“
