Retailers' loyalty schemes could be the "key to success" for FMCG retailers, according to the data and analytics company GlobalData.

Benefits for Consumers

Consumers are increasingly benefiting from loyalty schemes, especially in the food and beverage categories, as well as health and beauty.

More than half of consumers (55.3%) stated that loyalty scheme incentives always or often influence their choice of food and beverage products, while 52.1% reported the same for health and beauty, according to the GlobalData How People Shop Survey 2023. The survey included 6,000 respondents.

Additional benefits from loyalty schemes provide retailers with the opportunity to differentiate themselves from competitors, the analysis firm noted.

Low Customer Loyalty

FMCG companies, in particular, face low customer loyalty due to their highly interchangeable offerings, increasing the need to provide benefits through loyalty schemes to retain and gain market share, according to GlobalData's latest report, Thematic Intelligence: Customer Loyalty in Retail and Apparel.

Oliver Maddison, a retail analyst at GlobalData, commented: "In addition to the competitive benefits that loyalty schemes offer retailers, data collection provides substantial opportunities to better serve customers.

"The data that retailers collect about consumer shopping habits can help them target campaigns to specific consumer groups, personalize promotions, and ensure that their offering remains relevant."

Loyalty Schemes

The study cited Carrefour's free trial version of the standard Netflix subscription for customers in Rouen and Bordeaux, France, as an example of how retailers can make their recently established loyalty schemes more attractive to both existing and new customers.