Brand loyalty programmes are playing an important part in helping consumers get through the cost of living crisis, according to a behavioural science study by IAG Loyalty.
Of the 1,000 people surveyed for the study, 92% admitted to relying on loyalty programmes to give an extra boost to their everyday spending.
Half of the participants also said that they are actively looking for new ways to collect points and maximise the return when they spend money, with a further 20% saying they were inclined to spend more with brands with loyalty programmes.
According to the research commissioned by IAG Loyalty – owners of the global loyalty currency Avios – 80% of people also consider themselves rational decision makers and 20% emotional decision makers, with the latter likely to buy into luxury rewards.
Subscribe to Marketing Beat for free
Sign up here to get the latest marketing news sent straight to your inbox each morning
“As household budgets tighten, people are looking for help to stretch their income and save for the experiences that can feel out of reach, and brands are responding by moving loyalty programmes to the top of their business strategy,” IAG Loyalty chief commercial officer Rob McDonald said.
“We’re seeing more and more brands using the loyalty lever – from coffee to trainers, from the high street to streaming services – all competing in the same space. In these challenging times when money is tighter than ever, brands are in a unique position to demonstrate the value they can offer by making customers’ money go further.
“Brands have a wealth of information on their loyal customers which gives them unique insight to create rewarding offers and experiences that ensure those customers get the most from their spend.”
