Aldi and Lidl stumble on building loyalty with customers

 
Helen Cahill
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Discount Stores Aldi And Lidl Increase Their Popularity
The discount supermarkets are known for their low prices more than their loyalty schemes (Source: Getty)

Aldi and Lidl may be hoovering up market share from the more traditional supermarkets, but new research suggests they aren't winning the loyalty of the UK consumer.

Tesco customers feel the most satisfied with their rewards; 37 per cent of respondents to a survey by loyalty specialists ICLP said they were happy with how Tesco rewards customers for shopping with them.

Thirty-four per cent of those surveyed said they were well-rewarded by Sainsbury's. However, both Lidl (16 per cent) and Aldi (nine per cent), received far less praise from UK shoppers on loyalty. In addition, the survey respondants said they did not trust the discounters with their personal data.

Read more: Aldi harnesses the '90s revival with a retro new logo

Instead, shoppers said they could rely on Aldi and Lidl to give good offers and discounts.

Jason De Winne, general manager at ICLP, said: "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."

Both Aldi and Lidl have been trying to target middle-market consumers, in a bid to shake-off their image as budget grocers. Aldi, for example, boasted last Christmas that its food came from the same suppliers as Waitrose's.

An Aldi spokesperson said:

Our customers are incredibly loyal to Aldi because we focus on consistently providing them with outstanding quality at the lowest grocery price in the UK, rather than confusing them with loyalty schemes or gimmicks.

"Over the years we have seen customer loyalty grow further, with shopping frequency and spend continuously increasing," a Lidl spokesperson said. "Our very own online customer forum – My Lidl – demonstrates just how passionate our customers are."

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