ICLP survey reveals that Aldi and Lidl have not built well-rounded
relationships with their customers even as they continue to grow, while
Tesco and Sainsbury’s are seen as the most rewarding supermarkets by their
regular shoppers
London, UK – Loyalty marketing agency, ICLP reveals that when it comes to
supermarkets, UK shoppers have much stronger and deeper relationships with
Tesco and Sainsbury’s than they do with discounters, Aldi and Lidl. ICLP
surveyed over 1,000 UK consumers and found that Tesco shoppers (37%) and
Sainsbury’s shoppers (34%) were more than twice as likely to say that they
felt that their custom and loyalty was rewarded than Lidl shoppers (16%)
Aldi shoppers (9%).
Furthermore, 34% of Sainsbury’s shoppers and 31% of Tesco shoppers feel
that they are rewarded by offers tailored to them, while just 3% of Aldi
shoppers and 4% of Lidl shoppers felt this way. According to Nielsen, the
two discounters now account for a combined 12.3% of the UK grocery market, a
figure which has been on an ever upward trajectory for years. However, the
inability to build rewarding and reciprocal relationships with their
customers show a potential long term vulnerability for the two challenger
brands.
While Aldi and Lidl ranked highly when it came to trust in discounts and
offers (63% for Aldi and 52% for Lidl), consumers did not trust these
supermarkets with their personal data and did not feel that they would get
anything back in exchange if they shared this information. Only 26% of Aldi
shoppers and 20% of Lidl shoppers said that they felt their personal data
would be treated with respect (compared with 52% at Sainsbury’s and 35% at
Tesco), and only 9% of Aldi shoppers, and 4% of Lidl shoppers thought that
they would get something in return for sharing their information (compared
with 31% at Sainsbury’s and 26% at Tesco). While Aldi and Lidl are reaping
the rewards as UK incomes are squeezed by inflation, they are failing to
build long term brand loyalty that extends outside of offering low prices.
Thanks to Tesco’s Clubcard and Sainsbury’s Nectar reward programmes,
shoppers at these supermarkets felt that their repeat custom was being
recognised and rewarded, although both are still falling short of building
deeply devoted relationships, and hence are still losing customers to their
discounter rivals. Working with Professor Rogge from the University of
Rochester, ICLP applied Sternberg’s Triangular Theory of Love to the
relationships that shoppers have with brands. According to this model, a
deeply devoted relationship is one that involves commitment, intimacy, and
passion. 13% of Sainsbury’s shoppers were found to have a devoted
relationship with the brand, whereas none of the Aldi shoppers surveyed were
in a devoted relationship.
Nonetheless, 71% of Brits who named a supermarket in ICLP’s survey still
believe that their loyalty is not being rewarded by their selected retailer
including market leaders Sainsbury’s and Tesco. Meanwhile, a total lack of
reward programmes at Aldi have meant that only 1 in 4 of their shoppers said
that they felt valued and not just like another customer, while Lidl’s
relatively new ‘My Lidl’ programme is yet to shift consumer opinions
when it comes to loyalty.
As part of the research, ICLP asked shoppers questions in order to ascertain
how they felt about the relationships they had with particular brands that
they considered to be their preferred retailers. The results demonstrated
that:
• Reward programmes are falling short across the board: 71% of Brits do
not feel that their loyalty is rewarded by their named supermarket. Tesco
was revealed as the top supermarket in ICLP’s research, with 37% saying
that they felt that their custom and loyalty was rewarded, closely followed
by 34% at Sainsbury’s. This figure dropped to 9% for Aldi and 16% for Lidl
• Supermarkets are not making the most of personal data: Only 1 in 4 Brits
believe that they get something back when they share their personal
information with their preferred supermarket brand. Consumers’ trust in
protecting personal data varied across the supermarket sector. 52% of
Sainsbury’s shoppers and 35% of Tesco shoppers said that their personal
information was treated with respect and that they benefited from sharing it
with them, compared to 26% of Aldi shoppers, and 20% of Lidl shoppers
• Trust in discounts and offers is low: Only 1 in 3 UK shoppers believe
that their preferred retailer is always honest in the way that they discount
their products. Aldi and Lidl were the most trusted supermarkets, with 63%
and 52% of their shoppers respectively saying that they were honest in their
discounts
• Supermarket shoppers don’t feel special or unique: Only 31% of UK
shoppers say that their preferred supermarket brand makes them feel valued
and not just like another customer. Similarly, 69% said that they were not
appreciated by their preferred brand, even if they were a regular customer
Jason De Winne, General Manager at ICLP, commented: “The battle of
supermarket customer acquisition has been raging for years, but with
challengers Aldi and Lidl, the focus has shifted from customer acquisition
to retention. The UK’s longer standing supermarkets are unlikely to
benefit from engaging in a never-ending price war, and Aldi and Lidl have
already built strong brand recognition for their deep discounts and no
frills service. While their market share has reached impressive new heights,
Aldi and Lidl lack a well-rounded relationship with their customers.
“UK shoppers want their supermarkets to reward them better and to make
them feel like individuals, not just like everyone else. To keep customers
coming back, supermarkets need to put in place loyalty programmes that use
personal data to deliver bespoke rewards, recognition, and money-can’t-buy
experiences. Across the sector, supermarkets have a huge opportunity to
build truly devoted relationships with their shoppers by rethinking their
reward programmes and go beyond simple points collecting.”
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