The great loyalty cards backlash

THEY are designed to reward the most dedicated of customers.

But when it comes to loyalty cards, shoppers are increasingly finding it is disloyalty that pays.

Many have discovered – at a time when supermarkets are slashing the value of their store points – a series of ingenious tricks devised to fool retailers into thinking they have gone elsewhere.

As a result, anxious supermarkets are trying to lure them back with exclusive offers and two-for-one deals – resulting in big savings for the individual.

One of the most popular ways to achieve this is to switch between two cards in different names from the same store. An exclusive survey for The Mail on Sunday by Consumer Intelligence, a customer research company, said one in four shoppers now uses this trick.

The myWaitrose card also gives consumers the chance to ‘play’ the system. Cardholders have the right to a free tea or coffee whenever they visit a Waitrose store – crucially without having to produce a receipt to show they have bought anything. Our survey found 32 per cent of

‘Supermarkets could do better and they know it’

Waitrose customers admitted to taking advantage of the loophole.

Waitrose cardholders are also able to receive 20 per cent off 10 items from a list of 1,000 goods every time they shop in store.

Households who have two cards in different names are simply using them at the same time – with the husband getting 20 per cent off 10 items at one till and the wife paying for a further 10 at another till.

The survey also revealed that one in four members of Tesco Clubcard – the UK’s biggest scheme – admitted to spending ‘most of their points’ not in store but on cinema tickets and even holidays. One said: ‘I save up all my points for a meal out every few months. It’s much better value.’

The survey also revealed that half of loyalty cardholders are resorting to the schemes because they believe they get less value for money than they did a year ago.

Sainsbury’s has been criticised for halving the value of its Nectar points while Marks & Spencer shoppers have complained that when they buy food they are rewarded with vouchers they don’t want, such as those for fashion. ‘What I really want are vouchers to get more food but the store is trying to entice me into other areas,’ said one shopper.

Lindsay Cook, co-founder of money-saving website Money Fight Club, said: ‘Customers used to trust supermarkets but they’ll shop around. There is an element of not wanting to “give more” to the customers.’ Annich McIntosh, editor of Loyalty Magazine, revealed that the purpose of loyalty schemes was to provide retailers with customer data – but that did not mean customers shouldn’t be rewarded.

‘Data is the Holy Grail,’ she said. ‘Several supermarkets are doing loyalty card schemes well, but could they be doing better? Of course they could – and they know that.’

Kalpana Fitzpatrick, founder of Mummy Money Matters, said ‘Loyalty cards are a marketing tool to make you spend more – and customers are wising up.’ An M&S spokesman said: ‘We’re constantly evolving and adapting according to feedback, which we’re delighted to receive.’

Waitrose said ‘MyWaitrose is a unique way of rewarding customers with things they value, like a free newspaper or a tea and coffee.’

Nectar said: ‘Savvy shoppers expect more in return. We’ve transformed Nectar in the past year.’