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Why Convenience Stores are Struggling to Retain Customers

Smaller supermarkets are struggling to retain customers despite stealing market share from major players. New research indicates shoppers can rely on discount and convenience stores for offers and discounts, but not for loyalty incentives. Here’s why.

Customer Data

Tesco customers are most satisfied with their rewards according to a survey by ICLP. 37% of Tesco shoppers were satisfied with the rewards gained from shopping with them, and 34% said they well-rewarded by Sainsbury’s. Smaller stores received less praise, with survey respondents stating that they do not trust discounters with their personal data.

“It’s all about owning the customer and their experience. If you own the interface, you own the customer. If you own the customer, you own the data. And if you own the data, you own the future,” says Hugh Fletcher, Global Head of Innovation at Salmon.

So how can you provide an excellent customer experience, gain customer data and retain customers? The answer lies in digital rewards.

According to 2015 research from Boxever, 99% of consumers will share personal info for rewards. By utilising a multi-channel loyalty platform you can offer personalised rewards to customers based on their previous purchases. You can also collect purchase and redemption data in real-time.


Some 83% of UK consumers are quicker to retract their brand loyalty than three years ago, says research from Accenture. Traditional loyalty as we know it is dead. Digital disruption means we’re living in an age of ultra-convenience that not even convenience stores can compete with.

A third variable – service – has shaken things up further. It’s not about what customers get any more; it’s about how and when. Amazon founder Jeff Bezos famously said:

“When people ask me if our customers are loyal, I say absolutely, right up to the second that somebody else offers them a better service.”

The likes of Amazon and Ocado mean we’re inhabiting a society of ultra-convenience, where low-cost, next-day delivery and click-and-collect are expected. Customers even expect the same speed and user-friendly experience in physical stores as they do online.

“This age of ultra-convenience is certainly a challenge, eroding brand loyalty. Point-based, one dimensional and non-interactive loyalty schemes also don’t cut it anymore, particularly when it’s so easy to find a better product, at a better price online,” say Accenture in the Customer Experience and Loyalty report.

So how can you innovate in your loyalty scheme to retain more customers? Eagle Eye offers digitisation of existing loyalty schemes and the ability to build points-based, multi-tier schemes. From here you can create targeted, personalised rewards and offers to increase customer loyalty in an age of ultra-convenience.

Find out more about Eagle Eye technology and get in touch for tailored recommendations today.