Do loyalty schemes need to target lower income shoppers?
Findings from our Continuous Shopper Insights research revealed that despite lower income shoppers being more price conscious, they are not as likely to experiment with loyalty schemes as those who are on a higher income. This raises an opportunity to target those on a lower income in-store by highlighting the financial benefits of loyalty schemes.
Low income shoppers are the most likely to expect prices to rise and their household income finances to get worse in the next 12 months. Not only are they more concerned about finances, they are also much more likely to choose where they shop based on the store that offers the lowest prices. Shoppers earning £50K + are the least likely to be seeking value for money, yet they are the most likely to seek a store that provides them with a loyalty scheme.
It could be considered that those on a higher income are not just seeking the loyalty points in order to save money, but are attracted to the additional benefits from the loyalty schemes such as money off holidays and experiences. Whereas lower income shoppers who are price and value for money focused, are more likely to want immediate savings.
This may suggest loyalty schemes do not help lower income shoppers as the perks are not immediate enough (“need to wait till I have saved enough…”). Loyalty schemes may need to alter their approach in order to target those on lower income too.