Get in Touch

Black Friday: UK shoppers set to miss out on 3-billion-points earning opportunity

by on November 25, 2015 in Digital Marketing, Ecommerce, Latest News, Lead Article, Mobile/Tablet, News you can use, Social Media

Consumers look at more than price this Black Friday as loyalty and rewards rank highly among motivations for online shoppers

According to a new UK study of more than 1,000 online shoppers, ‘brand loyalty’ (49%) and ‘reward points on offer’ (33%) are high on the list of motivations for shoppers to press the buy button on Black Friday, behind the best deals on offer (68%).

The research suggests companies need to be thinking beyond price in order to differentiate themselves from competitors and get the most out of the biggest online shopping event of 2015.­­­

The study, from loyalty commerce expert Collinson Latitude, estimates that shoppers could earn a potential three billion points[1] as online spending is due to hit £1 billion in this Black Friday.

When asked which type of loyalty programmes they will use to earn points, the overwhelming majority of consumers (84%) named retail programmes, with finance (28%) and travel (8%) falling a long way behind. And, on average, consumers are planning to earn points with only one-in-four of the loyalty programmes they are a member of this Black Friday.

Respondents cited a number of reasons why they aren’t planning to use programmes to earn points this Black Friday, including: ‘a lack of special deals’ (37%); ’I didn’t know I could use my programme’ (19%); and ‘the offers aren’t relevant to me’ (17%).

“This year’s Black Friday is set to be the UK’s biggest online shopping event ever, but consumers are set to miss out on a key points-earning opportunity as loyalty programmes – particularly in the travel and finance sector – are failing to create awareness and offer incentives like double points, special deals, or promoting featured retailers”, said James Berry, E-commerce Director at Collinson Latitude.

The survey’s other key findings include:

  • Gen Z vs Gen X: Interestingly, Gen Z emerged as the most motivated by loyalty when deciding where to shop on Black Friday (62%). They are less focused on finding the best value deals, at 56%, versus 80% of Gen X. Being digital natives, this younger generation also ranked highest (31%) for asking for more personalisation in their rewards programmes.
  • Regional behaviours: When choosing where to shop online, customers from Leeds (44%) are the most influenced by rewards points, closely followed by Newcastle (40%) and Manchester (39%). The most loyal were in Brighton (64%), closely followed by Edinburgh (60%). Belfast consumers ranked lowest for being influenced by rewards (15%) and loyalty (35%), but are most swayed by the best deals on offer (75%).

Room for improvement

Nine out of ten consumers (92%) say their loyalty programme experience could be improved. ‘More relevant’ (31%) and ‘personalised offers’ (18%) made the list of suggested improvements, while more than half (54%) asked for the ability to earn points online. Nearly a fifth (17%) asked for Black Friday loyalty offers to be easier to use.

Berry concluded: “It seems UK companies are failing to inform their customers of the benefits and features of their loyalty programmes. There’s an opportunity to transform Black Friday – by its nature a one-off short-term sales success ­– into a long-term customer loyalty success. If done correctly, this holds the key to greater satisfaction and value for consumers and brands alike.”

Print article