UK-wide study suggests 92% of consumers are turning to loyalty programmes for everyday spending to make their money stretch during the economic downturnHalf of those surveyed said they’re searching for new ways to build their points to spend on treats they’d otherwise write offFollowing the global pandemic, consumers say they’re keen to prioritise treats and holidays abroad if they can
As the cost-of-living crisis continues across the United Kingdom this winter, a behavioural science study by IAG Loyalty, owners of the global loyalty currency Avios, has revealed the important part loyalty programmes are playing to help consumers during this challenging time, with inflation at its highest rate in 40 years.
According to the study of 1,000 people, 92% of Brits are relying on loyalty programmes to give an extra boost to their everyday spending during the cost-of-living crisis. More than 50% said they’re actively looking for new ways to collect points and maximise the return when they spend money, with 20% saying they were inclined to spend more with brands with loyalty programmes.
When asked to select three things they would want to prioritise during this crisis, 65% of respondents chose treats, followed by their annual summer/winter holiday (53%), then birthdays (42%), streaming services (40%) and live entertainment (34%).
When spending loyalty points, 80% of people consider themselves rational decision makers and 20% emotional decision makers, with the latter (38% of 18–24-year-old’s and 31% of 25–34-year-old’s) likely to choose luxury rewards.