January 31st 2023

The benefits of using a brand loyalty scheme in the convenience sector

Brand loyalty schemes in the convenience sector

The UK convenience market has witnessed quite a rollercoaster in recent years. Following a pandemic-driven surge in 2020, it then stumbled to a 0.9% overall sales loss in 2021. However, with the nation reopening in late 2022, considerable growth was observed as “normality” resumed, where workers returned and more people started visiting high streets, cities, and travel hubs once again.

Now, well and truly into the new year, the nation now faces a cost-of-living catastrophe and levels of inflation unseen in decades. Consumers are therefore looking to re-evaluate their purchasing patterns, putting those premium rates that convenience stores frequently charge in peril. Retailers must therefore provide consumers value and use extra services like accepting and returning internet purchases to increase foot traffic.

Building customer loyalty and retaining them can be difficult for brands in the UK convenience market, where retailers are frequently inundated with offers and incentives and access to EPOS data is non-existent. Therefore, a digital brand loyalty programme can be exactly what you need in this industry to boost customer engagement and encourage repeat business.

What are the benefits for brands to use a brand loyalty scheme?

Customers expect a flawless shopping experience in the fast-paced world of today, and convenience stores are no exception. Offering a loyalty programme is one approach to make sure that the retailer’s experience is easy and rewarding. Digital loyalty programmes are increasingly popular in the convenience industry since they boast a number of advantages:

Increased Retailer Retention and Repeat Purchases

Loyalty programmes encourage retailers to make more purchases, thus boosting customer retention. Retailers can keep customers interested and coming back by offering incentives for repeat business off the back of the rewards and incentives offered by the brands themself.

Enhanced Retailer and Customer Data Collection and Analysis

Digital loyalty programmes gather and preserve retailer and even customer information, giving brands useful knowledge on retailer and customer behaviour. The retailer and customer experience can then be enhanced, sales can be raised and marketing tactics can be informed by access to this unique data.

Increased Retailer Engagement and Interaction

Brands can communicate with retailers through digital loyalty programmes, giving them a more individualised purchasing experience. Brands can give clients personalised promos and offers to entice them to interact with the brand and buy something.

Improved Customer Experience and Satisfaction

Customers feel rewarded and recognised when they participate in loyalty programmes, which enhances their overall purchasing experience. Brands may increase customer happiness and loyalty by offering a seamless and hassle-free experience.

Increased Brand Recognition and Customer Loyalty

A loyalty programme provides a chance to develop a powerful brand and a devoted consumer base. Customers are more inclined to select a store with whom they have a strong relationship of loyalty than one without.

More Targeted Marketing and Promotions

The platform provided by digital loyalty programmes allows for tailored advertising and incentives. Brands can increase the likelihood of a sale by sending retailers customised offers and promotions based on their purchasing habits.

Increased Sales and Revenue

Retailers are encouraged to buy through loyalty programmes, which boosts sales and revenue for the brand. The bottom line benefits directly from increased customer engagement with the programme because more engaged customers are more likely to buy something.

Competitive Advantage over Non-Participating Retailers

A retailer stands apart from rivals who do not provide a loyalty programme by offering one. This can be a selling factor for retailers to draw in new clients and boost brand recognition through the access to unique offers and incentives, giving the brand’s products a competitive edge in the local market.

Opportunity for Upselling and Cross-Selling

Brands have the chance to upsell and cross-sell products through digital loyalty programmes. Brands can encourage Retailers to buy products and boost sales by offering incentives for doing so.

Increased Customer Feedback and Insights

Retailers can express their opinions and thoughts through digital loyalty programmes, giving brands useful data. Brands can utilise this data to enhance the customer experience and modify the loyalty programme in response to client’s input.

Introducing Reapp Rewards

Now you’ve heard the benefits, how do take advantage of them yourself? Simple: Use Reapp Rewards!

From initial distribution through to retailer habits and practises, Reapp Rewards gives a comprehensive perspective of the product path, providing you with useful data that helps nurture your working relationships with independent retailers.

Choose from a variety of focus areas, such as identifying supply and demand gaps, observing competitor activity, or paying attention to price, point-of-sale distinction, and packaging.

Additionally, you can analyse your competitors’ products and your chosen products in a flash, literally, by using the apps’ built-in image recognition technology.

What makes this even more rewarding is that we can identify the opportunities regionally and, if they spread beyond the reach of your field team, we can provide assistance thanks to our contact network of over 41,000 UK convenience merchants.

Are you curious in what Reapp Rewards might offer you? Send us a brief email so we can direct you to the perfect solution!

January 31st


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