27th June 2022
British consumers call for greater value and transparency from retail loyalty schemes as points expire without sufficient warning
- Half of Londoners have had loyalty points expire on them after earning them over time
- 45% believe the cost-of-living crisis will drive them to use loyalty cards more frequently to cut costs
- 71% would trust loyalty schemes more if the T&Cs were more transparent
LONDON – June 2022 - Over two-thirds of British consumers think modern loyalty schemes should be more transparent about their terms and conditions, according to market research by loyalty e-Wallet & marketplace, Swapi, as people across the country have reported their loyalty points expiring on them.
This data comes after multiple cases over the last 12 months where loyalty schemes have been altered and left loyal customers with a minimal window, or in some cases no time at all to spend their accumulated points. With this in mind, it comes as little surprise that over two-thirds of consumers in London (71%) would trust loyalty schemes more if their terms and conditions (T&Cs) were more transparent.
The call for greater transparency within loyalty schemes demonstrates a strong appetite among British consumers to engage with loyalty on a more frequent basis. This could not have been more evident from the data, which highlighted half of those living in London (45%) are using loyalty schemes to combat the cost of living as they look to save with their favourite brands.
Furthermore, nearly a quarter (22%) of British consumers have at least 3 loyalty cards in their wallets (electronic or otherwise). This is yet another sign that there is a strong desire for engagement with loyalty, but current uncertainty on the T&Cs or a lack of ROI, is deterring customers from investing more in retail loyalty schemes.
For Pete Howroyd, Founder & CEO of Swapi, having spent the majority of his career working in the retail loyalty space, Pete knows the impact poor loyalty experiences can have on a brand and on a consumer. Responding to this latest market research, Pete said:
“Having worked within the retail loyalty space for a considerable amount of time, I know just how frustrating it can be for loyal customers to lose out on hard-earnt rewards, discounts and more through the currently offered schemes.
“Our latest data shows customers are crying out for a more transparent loyalty scheme, that provides real rewards and ROI. Retailers would do well to analyse this latest data and see how their own loyalty plans stack up against what consumers want and make the necessary changes to help evolve their loyalty schemes.”
For Swapi, the idea of expiring loyalty points was self-defeating, that’s why when Pete and the team launched the app in December, they included the ability to be able to redeem your expired loyalty points and get them paid back in Swapi’s in-app currency ‘Swapi Points’ which users can spend on exclusive rewards including giftcards, discounts, products, cryptocurrency and experiences.