Loyalty gamification sparks concern

? Have you noticed loyalty pricing when you go shopping – with retailers offering discounts on a range of goods if you sign up to their loyalty card? The Guardian spoke to Mintel retail expert Nick Carroll to find out what’s driving this trend. ?? He notes: “Rather than building up points to redeem at some stage in the future, it has become about the deals or promotions you’re getting at the checkout. Within our data, we can see that the majority think that is a change for the better. They want that instant gratification.” ?? There’s a real differentiation with fashion loyalty schemes. Nick says: “In fashion, you see more of the advantage to being in a loyalty scheme – you have early access to sales, things like preferential delivery and returns, so it is more of an overall membership scheme rather than simply being a loyalty discount.” ?? Read the full article here: https://bit.ly/3X7Swzi

???????? ???? ???????????? ?????? ???????? ???? ?????????? ????????? Consumer group Which? and StepChange Debt Charity are cautioning about the risks associated with loyalty schemes from Asda, Morrisons, Sainsbury's, and Tesco that incentivise customers with bonus points for reaching spending targets. The concept of 'gamification' in these programs may drive consumers to spend beyond their means, raising concerns about social responsibility. What are your thoughts on this issue? https://lnkd.in/eEgX5Qbw #retail #consumer #ConsumerProtection #FinancialWellness #consumerbehaviour #shopping

Have supermarket loyalty cards encouraged consumers too much? I try not to be influenced when shopping. Budgetting is so important especially when some shoppers have to watch their spend. Should it be a bonus points scheme when you purchase more healthy products?

If genuine customer loyalty (repeat, endorsing, etc.) is the goal then the strategy must honor that spirit. In essence “we are here for you” from the brand perspective, or even better “I am with you” from the customer perspective, this means be it for real - talk is cheap. The high highs are nothing compared to the low lows of loyalty marketing if you mislead people. Angry, betrayed loyalty customers could be become your most toxic social media saboteurs. This article about loyalty marketing in U.K. supermarkets (among the most advanced schemes in the world) addresses violating trust via artful/shady pricing… a critical warning. Anyone offering its customers a loyalty program and/or loyalty promotions must be sincere in the offering. The very worst thing you can do is hoodwink people who believe that you’re on their side. It’s more exaggerated in crisis times, e.g. the cost of living crisis in the U.K. It is shocking that this chicanery still goes on. Clearly a lot of people in business do what they “can get away with” vs. “doing the right thing”. Luckily more and more get exposed. Take heed if you are involved in loyalty marketing with a dishonest heart. #loyalty?#loyaltymarketinghttps://lnkd.in/ggUw8_2Z

The gamification of food shopping. What happened to good honest prices? Is this move with loyalty cards the best the big supermarkets can do against the likes of Aldi and Lidl? Sometimes it’s best to go back to basics. Sell what the customer wants, not just what maximises your profit. Speaking of which, lots of AI-related earnings results coming this week! https://lnkd.in/emawYxvM

Consumer group Which? and StepChange Debt Charity are warning the dangers of the loyalty schemes that offer bonus points if customers hit spending targets (from Asda, Morrisons, Sainsbury's and Tesco). There is a risk this ‘gamification’ drivers spending consumers cannot really afford. Is this socially responsible? It also drivers #overconsumption and perpetuates many of the #sustainability challenges we face. There is also evidence it isn’t best for business either. Data shared at this month’s Velocity Institute Summit (Charlotte, USA) that targeted product promotions are the most successful way to influence buyer behaviour. And retailers can do much more to use the ‘right’ promotions for more responsible and #sustainable choices, rather than perpetuating over consumption with real #social #risks as highlighted in the report: Warning over new supermarket spending 'challenges' https://lnkd.in/ea-RwU7S

Marketing matters – encouraging shoppers to hit targets With the big supermarkets in fierce competition for your custom, some are now offering bonus loyalty points if you hit spending targets with them. They claim it's all about better value, but these promotions could encourage shoppers to go over budget. https://lnkd.in/e4M__fyG These ‘challenges’ bring forward many concerns and I agree with consumer group Which? and debt charity StepChange that it may trigger people to get further into debt. Loyalty card schemes are sometimes not about building and rewarding long-term trusting and mutually beneficial relationships, they are manipulative ways to bend your mind, target you to spend money and use your data to understand shopping habits and get you to part with your cash and thus trounce their rivals. The word 'challenges' could make it feel like a game or content and, if you are someone who gets drawn into this kind of thing it could be quite dangerous. I challenge, or dispute the truth and validity of the use of the word ‘challenges’ on this occasion. It sounds like an unfair way to target vulnerable people to me, with the reward being more market share for supermarkets.

#loyalty schemes often fly under the radar in terms of promoting unhealthy foods or targeting people on low incomes. Hopefully this is now getting the attention it deserves. #food #retail #grocery #supermarkets