Loyalty schemes have been around in UK supermarkets for decades, with shoppers accruing points on their purchases and then using these for discounts later. However, the way companies offer their loyalty schemes is evolving, with promotions going beyond the simple collection of points.
Recently, there has been a rise in loyalty prices, where some of the best deals are only available to those on the scheme. This encourages more people to sign up, and also gives them access to greater savings than ever before.
The age of abundant offers
Even though loyalty schemes and ongoing in-store promotions have always been a thing in UK supermarkets, the internet age has forced companies to up their game. In online business, special offers are everywhere, and often give people exceptional ways to save. Take the online casino market, for instance, where the Betfair latest casino bonuses include free spins on slot games for newcomers and a shot at a daily jackpot for returning players.
The same can be seen in other sectors too, where there’s usually a lot of free content to be found before people have to pay. A lot of language learning apps have free versions, as do many web design tools and trading software platforms. Users can get an idea of the product and then pay more if they want access to premium features.
Supermarkets can’t give out too many freebies, but they can try to provide similar levels of value. With loyalty prices, companies encourage customers to enter an ecosystem where they can be alerted about various promotions. They also have the chance to highlight certain products to people as well, which can be helpful when they need to sell items before they expire.
Loyalty prices are changing shopper behaviour
Shoppers have often been guided by promotions, and these loyalty prices are leading to significant changes in consumer behaviour. A study from the National Centre for Social Research found that 69 per cent of shoppers think loyalty pricing offers good savings, and that the schemes can lead to increased purchase frequency and larger basket sizes.
Instead of simply looking around the shop for promotional labels, customers are now comparing prices of products based on loyalty scheme discounts and the potential for future rewards. Most people now know that they need to join the various loyalty schemes at different supermarkets too, to ensure they get all the savings available.
Supermarkets are competing on value
The best thing about the rise of these loyalty schemes for customers is the fact that the competition between supermarkets is getting fiercer. With more people turning to budget supermarkets like Aldi and Lidl, traditional supermarkets need ways to keep shoppers coming back too.
Loyalty prices are one of the best ways to do this, because it means they can cut prices on specific products rather than across the whole shop. According to a piece in the Guardian, loyalty prices vary across supermarkets, meaning that savvy shoppers can make great savings by diversifying between them.
Loyalty prices appear to be the new normal, and they are likely to become more influential in the years ahead. Supermarkets can use them cleverly to steer people towards certain products and make them feel like they are getting excellent value.
