What is the value of loyalty? Loyalty programmes in Hungary in 2023

Fun and enjoyment, should be easy and offer a bargain

Most loyalty programmes try to achieve their goal of making sure customers return regularly by increasing their sense of being appreciated. With little success, it seems. Just over a third of households feel valued by a business/service provider through loyalty programmes. However, for many, the lack of appreciation is offset by the reassurance of saving money: for 60% of households it is the savings that make them feel good about participating in loyalty schemes. A good loyalty programme is simple, user-friendly and uncomplicated.

Commitment or an interest-based relationship?

The vast majority of shoppers don’t have the patience to wait for large gifts and discounts, 70% like smaller rewards that are quicker to earn. A good programme will provide a sense of reward with every purchase. In addition to rewards, luck and playfulness are important to many people. Participation in loyalty schemes is now quite common: 98% of households use at least one scheme. However, the increase in interest in loyalty schemes doesn’t mean loyalty. Currently the average household juggles at least 5 loyalty programmes at the same time, while visiting 6 shops. 85% of shoppers have a loyalty programme that they use every time they shop, and 60% have more than one.

The price of loyalty

As most things in life, customer loyalty isn’t free, with households expecting a visible, tangible financial benefit: on average at least 7-8% lower prices in return for their loyalty.

Retailers also benefit from loyalty schemes, because Hungarian shoppers spend demonstrably more where they have a loyalty card than where they aren’t a member of a scheme. One in two purchases is made with loyalty, and two thirds of all FMCG spending is also realised within a loyalty scheme. Typically shoppers use loyalty programmes when buying a lot: it is really worth it when purchasing products in 4-11 categories or more, as 70-80% of households consider it important to collect points and/or redeem them as a discount at the checkout. Tesco Clubcard, Lidl Plus and Rossmann+ are the top 3 loyalty programmes in Hungary. Although Tesco is the most successful in encouraging people to use its loyalty scheme, Lidl wins when shoppers are asked which scheme they like the best – 23% say Lidl Plus is their favourite. Lidl customers are also the most satisfied loyalty scheme users, followed by Rossmann+ users and Clubcard users.

Is loyalty for Dogs? – Customer loyalty segmentation

Five well-defined customer loyalty segments can be identified. Butterfly: the most enthusiastic loyalty programme user, who wants to shine in every respect and feels truly valued by loyalty programmes. Dog: the most loyal companion, even if they use fewer programmes, they do so more persistently and consistently. Fox: the biggest profit hunter, who uses a lot of schemes but only occasionally, when it is really worth it. Turtle: they keep up with the trends, albeit rather slowly, and although they find loyalty programmes complicated, they are members of one or two. //