A new era of digital loyalty

Loyalty programmes are having a moment; growing in popularity as customer tighten their budgets in the cost-of-living crisis, and seek greater value for their money, control, and convenience. Brands are digitalising their loyalty programmes, utilising rich customer data to individualise rewards, help customers stretch their money further, and ensure they don’t miss out on targeted discounts. The ultimate goal for brands is to drive lifetime value and reduce churn - 87% of UK customers say loyalty programmes influence them to buy again from a brand (Klarna, 2022).

Buy-now-pay-later giant Klarna plans to launch a ‘Loyalty Card’ feature on its app, allowing users to store and access all their physical loyalty cards as digital versions. This feature currently supports over 400 reward programmes in the UK. Alongside this, Klarna launched a new payment feature called ‘Digital Cards’ that can be used in the physical stores of Klarna’s retail partners, enabling customers to pay in three interest-free instalments via the Klarna app. 

In the UK supermarket landscape, loyalty schemes have a proven history of enhancing value perception and driving sales. 43% of customers spend more at grocery stores that have loyalty programmes (PYMNTS, 2021). In March, supermarket retailer Asda announced it would roll out its loyalty app to more stores, after a successful trial across 16 sites. Asda Rewards allows customers to get cash back on their shopping when they purchase specific own-brand and big label products. Users can also gain additional points by completing in-app ‘missions’, such as buying five fruit & veg to get £1 or spending £15 on pet products to get £3. The money earned creates an e-voucher in the app which is then scanned at checkout. If the trial continues to be successful, Asda will roll out its loyalty programme to its whole UK store network.  


Household takeout

Digital loyalty programmes have huge potential to drive lifetime value for brands and customers during the current crisis and beyond. Data-led personalisation is key to unlocking the targeted recognition and reward that customers need, positioning brands as invaluable partners in their lives.  

Get in touch with Household to explore how you can utilise data to open up a more personalised value-led dialogue and be genuinely helpful for customers in these challenging times.  

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Image courtesy of Klarna

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