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London, January 23 2012: ICLP, the global leader in loyalty marketing and customer relationship management, is calling on UK retailers to adopt customer loyalty programmes as a means of surviving the tough economic climate.

Phil Szymala, business insight director at ICLP UK, says: “The recession has acted as a catalyst for the rise of discounting among retailers in the UK as consumers look for the lowest price on quality brands, but this approach is just a short-term solution. In such a market, retailers need to be offering more than competitive pricing: they need to consider long-term market share over short-term footfall and offer customers a real incentive to remain with their brand. Loyalty programmes are a perfect option.”

Szymala continues: “Without motivation to remain loyal, consumers searching for the best deal will switch between retailers. The reward offerings provided by a loyalty programme give customers a tangible incentive to continue shopping with one specific retailer. The impact of loyalty initiatives on market share can be illustrated by the success of Sainsbury’s over the Christmas period. Having invested heavily in loyalty offerings to customers, Sainsbury’s celebrated the company’s best ever Christmas results. In contrast, Tesco, which moved away from loyalty offerings and focused on a ‘Price Drop’ initiative over Christmas, had a torrid time in terms of sales.”

Szymala raises the importance of customer engagement, saying: “The important factor to consider when developing a loyalty strategy is how the rewards align with customer interests and spending patterns. Although the traditional points-based loyalty programme remains a popular option for retailers, brands don’t have to follow this approach. The loyalty programme recently launched by Waitrose, where customers receive offers, competitions and ideas tailored to their individual needs and interests, is an example of the alternative options out there. For a loyalty programme to be successful, the rewards must be tailored to customer spending habits so programme members receive tangible value for money.”


About Us:
Dedicated to loyalty since 1987, ICLP is a worldwide leader in loyalty marketing and customer relationship management. ICLP offers a full range of B2B and B2C loyalty services – determining strategies, uncovering insights, engaging customers across multiple touch points, and delivering and operating loyalty programmes.

With a unique mix of experience, innovation, expertise and passion, ICLP has helped over 300 clients in 45 countries, across multiple industry sectors, to develop greater loyalty and more profitable customer relationships.

ICLP has offices in 17 key locations in 15 countries across six continents. ICLP is part of The Collinson Group, a privately-owned and independent organisation acknowledged as a global leader in specialist travel membership, insurance and marketing products and services.

Twitter: @ICLP_London

For more information, please contact:
David Langton
ICLP Global Marketing & Communications
T: +44 (0)20 7422 5515

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