Younger shoppers are the most likely to abandon a retailer over its loyalty scheme, despite feeling more loyal to retailers than they did three years ago, according to new research from HyperFinity, the AI-powered actionable intelligence company.
Research in HyperFinity’s Retail Loyalty Index Pulse report, which was produced with Bloomreach and Eagle Eye, found that 61% of under-35s feel more loyal to retailers than they did three years ago, yet 28% have stopped shopping with a retailer because of its loyalty programme – this compares to just 10% of over-65s.
“Younger shoppers may feel more loyal to retailers, but that loyalty cannot be taken for granted,” Thomas Hill, Co-Founder of HyperFinity, commented. “A scheme that offers generic rewards or fails to deliver on its promises can quickly undermine that relationship.”
“There is no one-size-fits-all approach to loyalty – retailers need to understand what individual customers value and make sure the benefits they offer are relevant, worthwhile and deliverable.”
And, according to the report, that challenge extends to personalisation. While shoppers may expect offers to reflect their interests, they do not necessarily see the technology behind them as a benefit in itself.
Hyperfinity’s study showed that 69% are comfortable with AI being used to deliver more relevant deals, but just 4.4% identified AI-powered recommendations as a retail trend they most want to see.
“Personalisation is becoming an expectation rather than a reward in itself,” Thomas added. “Customers aren’t concerned about the technology behind an offer; they want offers that are relevant, useful and worth acting on. AI can help retailers deliver that, but only if it improves the customer experience.”
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