Shoppers changing 'cynical' attitude towards loyalty schemes, report finds

How we're using high street loyalty schemes is changing, a report has found.

The annual Points Index report by Virgin Red has found we are more likely to use points or rewards from loyalty programmes to cut household costs, with 66% of us using such schemes to reduce the weekly grocery shop or make train fares cheaper.

Consumer expert from Wiltshire, Alice Beer, says many people have changed their attitude towards loyalty schemes.

"There was quite a cynical approach to them or reaction to them in the past whereby we felt that this is companies just wanting to gather information on us."

But with supermarkets now offering lower prices to people who are part of their loyalty scheme, the public have seen the easy benefits of signing up.

"People are much more accepting of it," Alice told Greatest Hits Radio, adding that people are getting more creative with how they shop on the high street.

Tiered pricing schemes 'changing the landscape'

The report shows 74% of people are using loyalty points to supplement their income in an effort to combat the impacts of the cost-of-living crisis

Since 2022, the number of people belonging to a loyalty scheme is up 17%, according to the Points Index report, with 9 in 10 of us now part of one.

Alice told us that the tiered pricing in stores is "changing the landscape" as we're now getting money off at the till, rather than just simply building up points to spend on a luxury item.

She said its a 'no-brainer' to use a loyalty card when the difference in price can be 'significant'.

Technology is allowing loyalty schemes to be more in our pockets than ever before, with many programmes now coming with a smartphone app.

"The mechanics of spending and earning loyalty points have become much, much easier with a smartphone, much more second nature," she said.

But she's wary of important demographics being left behind in this period of rapid growth.

"If you can't access a smart card for your supermarket, then it's wrong that you should be the people that are paying more."

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