Three-quarters of consumers won’t give personal details to companies if they don’t have a proper loyalty scheme


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New research from GI Insight also shows firms are making greater efforts to retain customers and build stronger relationships as the economic slowdown drags on

Just over three-quarters (77%) of British consumers say they don’t like giving personal details to a company unless it is through an established loyalty scheme, new research from loyalty and database marketing specialist GI Insight reveals.

The survey of more than 1,000 consumers from across Britain also shows that 68% of consumers say a loyalty scheme was a factor in keeping them purchasing from at least one company during the last few years. The survey was representative of Britain by age group, gender, region and social class.
The study, conducted during the first quarter of 2012, shows that firms have maintained their focus on building loyalty even as the UK has moved out of recession. The research reveals that firms have been making a greater effort to retain their customers, with 58% of respondents saying many of the companies they purchase from have been sending a greater number of relevant and personalised communications and offers over the last year. Additionally, 54% believe companies they deal with have used their knowledge of consumer’s preferences, tendencies and needs to improve the service they received over the last year.

The research makes clear that, as the economic slowdown has dragged on, companies have made greater efforts to develop stronger relationships between their brands and consumers using data gathered through loyalty schemes and other sources: 74% have seen companies “wake up to the need to give their customers better, more individual service, attention and offers”.
Similarly, 58% of consumers feel they have received value in return for their loyalty and, as a result, have stayed faithful to certain brands, retailers and suppliers – despite the fact only 40% noticed the schemes they belong to are increasing points, improving rewards or providing more bonus points opportunities.

Andy Wood, Managing Director of GI insight, comments: “These findings underline the fact that loyalty programmes are the best way to capture and utilise the sort of information that enables brands to build the stronger customer relationships many of the most successful companies have seen take shape over the last few years.

“During recessionary times, economic hardship encourages ‘promiscuous’ shopping behaviour among consumers as they seek out the cheapest deals. When budgets are tight and customers more willing to shop around for bargains, companies must decide how best to secure their interests. Is precious budget to be spent protecting existing customers or poaching those of competitors?

“With studies exposing that it costs up to ten times more to generate new custom than to uphold existing relationships, maintaining a pool of current customers and reducing churn is imperative – particularly in a turbulent economic environment. It is telling that our survey reflects the fact that customer retention has clearly been top of the agenda for many businesses over the last few years, with many having realised the importance of loyalty schemes in helping them achieve this.

“Greater efforts have been made to use data – gathered from loyalty programmes and other sources – to strengthen relationships between brands and consumers. In fact, the study shows that even when the outlook appears more positive, firms have not made a marked move from retention to acquisition, with many continuing their focus on building and preserving loyalty.”
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For further information please contact: Hugh Filman at [email protected]; or call 020 7402 0510

About GI Insight

GI Insight specialises in database marketing and loyalty schemes, having created and managed more retail loyalty programmes than anyone else in the UK. The Leicester-based company offers a full range of database marketing services including consultancy, database design/build/host, data capture, analysis, segmentation, profiling, campaign execution and measurement, available as a whole or on a ‘pick and mix’ basis. The analysis and interpretation of your sales and customer data enables you to influence customer behaviour. This knowledge helps you to reliably increase profitability by:

• Getting more new customers (acquisition)
• Getting existing customers to:
o Spend more often
o Spend more per transaction
• Reducing Customer Attrition (retention)

For more information, please visit

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