Only every third Danish consumer prefers to shop at online retailers with a loyalty program.
As a result, Danish consumers are significantly less enthusiastic about customer clubs than our Nordic neighbors. Consumers, on the other hand, are aware that retailers are continually improving their shopping experience. It shows a new study from the payment and technology company Adyen.
Although most Danes are members of one or more loyalty programs such as COOP, Matas, IKEA Family or H&M, suggests that far from all Danish consumers are equally enthusiastic – or loyal – to customer clubs and loyalty programs.
This is stated in a new report from the payment and technology company Adyen, Adyen Retail Barometer 2020, which focuses on the significance of the corona crisis for consumer behavior in Denmark and 10 other European countries.
In the survey conducted among 25,157 European consumers, including 1,044 in Denmark, only one in three Danish consumers (33 per cent) answer that they prefer retailers that offer so-called loyalty programs when they shop online. 40 pct. answers ‘no’, and the remaining 27 per cent. ‘do not know’.
“For many years, there has been a widespread consensus that loyalty programs have been an effective tool for both attracting and retaining customers by, for example, offering benefits such as bonuses or discounts. But that picture – especially in Denmark – seems to have changed in the wake of the corona crisis, ”says Tobias Lindh, country manager for the Nordic and Baltic countries in Adyen.
In comparison, more than half of consumers in Norway (52 per cent) and Sweden (53 per cent) prefer to shop at online retailers with loyalty programs.
Do not cut all customer groups over one comb
According to Tobias Lindh from Adyen, it is important that retailers do not cut all their customer groups across one comb.
“Before 2020 and the corona crisis, we saw a clear trend for retailers to focus on getting as many consumers into their benefit programs as possible. As a consequence of the corona crisis, many retailers have digitized their business across platforms and channels, and this has made it a complex task to be relevant to the individual target groups, ”he says and continues:
“The task is to be relevant to the individual target group, regardless of time, place and platform. But it is easier said than done, and it is possibly part of the explanation why Danish consumers go for the good shopping experience to a greater extent than the best benefit program. ”
Consumers: Retailers need to improve the shopping experience
In the survey, more than half of the Danish consumers surveyed (55 per cent) answer that they believe that retailers should focus on improving the shopping experience instead of enticing customers with a loyalty program. At the same time, 53 per cent declare. ‘strongly agree’ or ‘agree’ that they prefer retailers whose loyalty program is directly linked to their debit card.
“Many consumers have already said goodbye to their physical membership cards, so retailers can already think about how they appear relevant to members, for example, without members having to do anything active themselves. Some retailers are already taking advantage of this opportunity, and it is clearly our expectation that more will follow suit, ”concludes Tobias Lindh from Adyen.
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