Banks top the list for customer loyalty, but supermarkets are not far behind. That’s according to new research into UK customer loyalty in 2012 by Ipsos Mori and The Logic Group.

Sixty six per cent of consumers surveyed were loyal to their bank, while 62 per cent felt loyal to supermarkets. This, however, is not reflected in their loyalty scheme participation with these organisations. Sixty eight per cent of supermarket customers are part of a loyalty scheme, but that is only the case with 16 per cent of bank customers. This gap is widened further amongst respondents who stated specifically that they are loyal to their supermarket or bank. Of those who feel loyal to their supermarket, 48 per cent are part of a supermarket loyalty scheme, compared to only 14 per cent of those who feel loyal to their bank being part of a bank loyalty scheme.

Jon Worley, director of customer interactions at The Logic Group, comments, “From loyalty schemes, supermarkets have a wealth of customer information including their spending habits, which can be an invaluable asset in finance management. Sainsbury’s and Tesco already offer bank services, which are seeing a great amount of traction, suggesting consumer familiarity with the brand is impacting on their banking choices. Partnering with known High Street banks also adds credibility to their banking services.”

The findings from the report suggest that habit and trust are the two key reasons consumers are loyal to their bank. While habit is a factor in supermarket loyalty, the research suggests that joining a loyalty scheme does not necessarily lead to customers trusting an organisation, with 46 per cent of respondents saying they trust companies running loyalty schemes to keep their details safe.

Worley observes: “For supermarkets to offer an independent banking service to rival High Street banks, they need to ensure customers feel they can trust them. Customer insight is a double edged sword. While supermarket banks can use their insight to advise customers on their spending and offer them rewards/promotions based on their habits, a potential barrier to consumers choosing to bank with a supermarket may be that they feel the supermarkets have too much information about them, or that their data could be compromised through a security breach.”

Share Story: