The study "For Love or Money 2013 Consumer Study into Australian Loyalty Programs" surveyed over 1000 Australian consumers and found 88% of those aged over 16 belong to a loyalty progam.
http://www.chrispattas.com/business/2013/5/29/do-consumers-buy-more-from-a-business-with-a-loyalty-program
All rights belong to: www.directivity.com.au & www.citrus.com.au
Loyalty Programs are going mobile. This presentation lays out some of the reasons why we're seeing a shift in Loyalty to mobile, and the best way businesses can take advantage of it.
How Does a Customer Loyalty Program Work?Savannah Bobo
Customer loyalty programs work by motivating customers to alter their behavior to earn rewards. Businesses implement these programs to retain customers, differentiate themselves, and encourage certain behaviors. Loyalty programs succeed by offering rewards that appeal to participants' interests and personalities, ensuring participants value the rewards. Finally, effective programs have clear rules and objectives, regularly communicate with participants, and analyze results to determine the program's impact.
Foursquare’s launch in 2009 set the stage for the mobilization of loyalty programs. While punch cards and scan cards still reign in use, digital loyalty programs are popping up in a number of industries. In this presentation, attendees will learn about mobile apps that can help mobilize their businesses’ loyalty programs.
This presentation was given in May 2012 at the Mobile Marketing Strategies Summit in San Francisco: http://mobilemarketingstrategiessummit.com/san-francisco2012/agenda.html.
How to Create and Maintain a Successful Loyalty Program Part AVivastream
The document discusses how to create and maintain a successful loyalty program. It defines loyalty and its impact on marketing. It provides 7 keys to successful loyalty programs: 1) programs must provide value to customers, 2) customers should have choices within the program, 3) programs should provide aspirational rewards, 4) programs and communications should be relevant to individual customers, 5) programs require commitment from the company, 6) programs need easy engagement for customers, and 7) programs require measurement and optimization. The document advocates for loyalty programs as a way to build stable revenue and brand engagement.
Snipp Webinar With Loyalty360 - The State of Loyalty in 2017Snipp Interactive
Loyalty in the US is at a tipping point. With the number of companies entering the marketplace and competing for consumer attention skyrocketing, capturing consumer loyalty is not an option - it is essential to the survival of brands. In fact, according to eMarketer, the majority of US marketers intend to allocate more of their budgets to customer loyalty in 2017, with many anticipating significant increases in spending on loyalty.
However, knowing how to spend your budget on loyalty is part in parcel to succeeding in the market place. Join Snipp and Loyalty360 as we examine the state of loyalty in 2017, bringing brands the information they need to ensure loyalty initiatives are focused, strategic, and ultimately, will win over consumers for the long term.
In this webinar, you will learn:
• Key trends for loyalty in 2017, such as the importance of “Lifestyle Loyalty”
• Best practices for setting up winning programs. Want to know how to incorporate the Internet of Things into your own loyalty program? We’ve got you covered!
• A specially developed model & framework developed by our industry leading loyalty consultants to keep you on track as you plan for and manage your loyalty initiatives
This document discusses how loyalty programs are evolving beyond just transactional rewards to focus more on customer engagement and emotional loyalty. It notes that while financial rewards are still important, programs need to provide achievements and recognition to build deeper loyalty. Successful programs recognize both transactions and interactions, offer a variety of reward types, and keep the customer experience fresh and surprising. The best programs also facilitate social connectivity and tailor the experience to each individual customer. Overall, the key is moving beyond just rewarding transactions to fostering real engagement and emotional loyalty through a well-designed, integrated customer experience.
Loyalty Programs are going mobile. This presentation lays out some of the reasons why we're seeing a shift in Loyalty to mobile, and the best way businesses can take advantage of it.
How Does a Customer Loyalty Program Work?Savannah Bobo
Customer loyalty programs work by motivating customers to alter their behavior to earn rewards. Businesses implement these programs to retain customers, differentiate themselves, and encourage certain behaviors. Loyalty programs succeed by offering rewards that appeal to participants' interests and personalities, ensuring participants value the rewards. Finally, effective programs have clear rules and objectives, regularly communicate with participants, and analyze results to determine the program's impact.
Foursquare’s launch in 2009 set the stage for the mobilization of loyalty programs. While punch cards and scan cards still reign in use, digital loyalty programs are popping up in a number of industries. In this presentation, attendees will learn about mobile apps that can help mobilize their businesses’ loyalty programs.
This presentation was given in May 2012 at the Mobile Marketing Strategies Summit in San Francisco: http://mobilemarketingstrategiessummit.com/san-francisco2012/agenda.html.
How to Create and Maintain a Successful Loyalty Program Part AVivastream
The document discusses how to create and maintain a successful loyalty program. It defines loyalty and its impact on marketing. It provides 7 keys to successful loyalty programs: 1) programs must provide value to customers, 2) customers should have choices within the program, 3) programs should provide aspirational rewards, 4) programs and communications should be relevant to individual customers, 5) programs require commitment from the company, 6) programs need easy engagement for customers, and 7) programs require measurement and optimization. The document advocates for loyalty programs as a way to build stable revenue and brand engagement.
Snipp Webinar With Loyalty360 - The State of Loyalty in 2017Snipp Interactive
Loyalty in the US is at a tipping point. With the number of companies entering the marketplace and competing for consumer attention skyrocketing, capturing consumer loyalty is not an option - it is essential to the survival of brands. In fact, according to eMarketer, the majority of US marketers intend to allocate more of their budgets to customer loyalty in 2017, with many anticipating significant increases in spending on loyalty.
However, knowing how to spend your budget on loyalty is part in parcel to succeeding in the market place. Join Snipp and Loyalty360 as we examine the state of loyalty in 2017, bringing brands the information they need to ensure loyalty initiatives are focused, strategic, and ultimately, will win over consumers for the long term.
In this webinar, you will learn:
• Key trends for loyalty in 2017, such as the importance of “Lifestyle Loyalty”
• Best practices for setting up winning programs. Want to know how to incorporate the Internet of Things into your own loyalty program? We’ve got you covered!
• A specially developed model & framework developed by our industry leading loyalty consultants to keep you on track as you plan for and manage your loyalty initiatives
This document discusses how loyalty programs are evolving beyond just transactional rewards to focus more on customer engagement and emotional loyalty. It notes that while financial rewards are still important, programs need to provide achievements and recognition to build deeper loyalty. Successful programs recognize both transactions and interactions, offer a variety of reward types, and keep the customer experience fresh and surprising. The best programs also facilitate social connectivity and tailor the experience to each individual customer. Overall, the key is moving beyond just rewarding transactions to fostering real engagement and emotional loyalty through a well-designed, integrated customer experience.
Top ten benefits of outsourcing customer loyalty retail programs (https://goo.gl/amf6b7) to specialized companies. Features mechanics of loyalty programs, advantages of customer loyalty programs, critical questions that make a successful customer loyalty program and more.
Invensis Technologies (http://www.invensis.net) a leading IT BPO company with more than 14 years of experience, specializes in providing customer loyalty program management and customer retention services (https://goo.gl/Nmnq6l) to clients worldwide.
Please contact us at sales {at} invensis {dot} net OR Call us Now from US +1 (302)- 261-9036, UK +44 203 411 0183, AUS +61 3 8820 5183, IND +91 80 41155233 for more details on our services.
Loyalty Program Management System for RetailScienceSoft
The document describes a loyalty program management system for retailers. It includes capabilities for maximizing customer engagement, improving retention, personalizing communications, and analyzing customer behavior. The solution integrates CRM, a customer portal, mobile app, and analytics to provide a comprehensive loyalty program that segment customers, offers rewards, and gains insights from customer data.
Expert strategies for your loyalty programArun Krishnan
The document provides an overview of strategies for implementing a successful loyalty program using SAP Loyalty Management. It discusses the current state of customer loyalty, an overview of SAP Loyalty Management capabilities, a case study of a loyalty program implementation, and 8 leading practices for a loyalty program. The leading practices include focusing on acquiring customer data, aligning the loyalty experience to the brand, engaging members with personalized content, excelling at core program benefits, harnessing partner networks, empowering brand advocates, increasing member wallet share, and reducing marketing costs.
How to Build a Killer Customer Loyalty Program for Your Business Kabbage
The concept of a customer loyalty program is simple – your customers are rewarded for repeating their business, and your revenue as a business increases from their support. Most big brands from Starbucks to Safeway, Walgreens and Best Buy feature customer loyalty programs. But customer loyalty isn’t just for big business – it’s a key strategy for small business owners to scale revenue and build lasting relationships with the people who matter most – loyal fans of your business and product. In this webinar, we’ll go over everything you need to know to build a killer customer loyalty program, including:
- How to define customer loyalty and why it's important
- How to do customer loyalty right: the dos and don'ts
- Using data and mobile to drive loyalty
- Importance of branding and fraud prevention
- Loyalty apps and tools to use
- How customer loyalty can be used in each business industry/vertical
Berman (2006) developing an effective customer loyalty program[1]Tuan Le Anh
This document discusses developing effective customer loyalty programs. It begins by describing the history and types of loyalty programs, from early stamp programs to modern frequent flyer miles programs. It then notes that while loyalty programs are very popular, many are not successful at achieving their goals of increased customer loyalty and sales. The document differentiates between four types of loyalty programs and provides examples. It concludes by discussing potential benefits an effective loyalty program could provide, such as increased customer retention and reduced price sensitivity, but notes that well-run programs are needed to realize these benefits.
For Love or Money 2016_ExecSummary_FINALAdam Posner
This document provides an executive summary of a research study on Australian loyalty programs and their impact on customer loyalty. Some key findings from the study include:
1) Membership in loyalty programs remains steady, with 82% of Australians enrolled in at least one program. On average, members belong to 3.9 programs.
2) Engagement with loyalty programs is changing, with members being less actively engaged with all of their programs but more engaged with most programs.
3) The top 10 most mentioned loyalty programs doing a very good job according to members are Coles/flybuys, Woolworths Rewards, Qantas Frequent Flyer, Virgin Velocity, MYER one, Priceline Sister
Everyone has a creative potential! Yes that's right. We all have the innate capacity for creative activity. ZaVue Solutions deals with providing novel business ideas and an opportunity to do online writing to earn a good amount in your lives.
Website: http://zavuesolutions.com/
Like and share our Facebook page to get updates;
https://www.facebook.com/zavuesolutions/
This document discusses the impact of loyalty programs on customer retention and satisfaction. It provides data showing that customer satisfaction reduces churn rates and increases cross-selling. When loyalty programs are working properly, members report higher satisfaction than non-members. During a "churn crisis", loyalty program members had significantly lower churn rates than non-members, demonstrating the impact of the program. The document also includes an author biography providing experience with designing and implementing various loyalty programs.
This document describes the evolution of card-linked offers (CLOs) and introduces a new coalition loyalty-based CLO model. Traditional CLOs provided single-use discounts but did not build long-term loyalty. The new model allows customers to earn rewards from multiple merchants that aggregate into a common currency to redeem for fuel savings, encouraging repeat purchases. Merchants benefit from more customer data and marketing opportunities through a broader coalition loyalty program.
Telecom operators require to proactively engage customers. The Telecom Loyalty Programs allow the service providers to run high-quality and advanced loyalty programs of different scales that validate their sales and marketing strategies with to retain existing customers & acquire new ones.
Read more: http://www.mahindracomviva.com/products/customer-value-management/mobilytix-suite/mobilytix-loyalty-management-solution.htm
ICEW 2013 Amanda Cromhout - Big Data: the key to making customer-centric cha...TheFocusGroup
Regardless of the type of organisation, you need to mine your data to provide a truly customer-centric offering. Your data should be at the heart of your product strategy. Amanda encourages organisations to explore under the tip of the iceberg, diving deep into the data you hold on them to maximise your sales and profits.
How to implement a customer loyalty program for ecommerceZinrelo loyalty
This webinar presentation by ShopSocially and Demandware will show you how Predator Nutrition, a leading ecommerce store, implemented a 360 degree customer engagement model and generated 1000s of loyal enrolments in just 6 months!
These slides will help you:
• Understand how loyalty marketing can get you up to 26% more repeat sales
• Learn actionable tips for setting up your own loyalty program
• Discover how Predator Nutrition achieved a 33% higher average order value (AOV)
Use of sna and give back ratio monitoring to improve cost effectiveness of yo...Benjamin FILAFERRO
Use of social network analysis (SNA) and tracking competitors' give-back ratios can help improve the cost effectiveness of loyalty programs. SNA can identify important customer segments and influential customers to target. It can also help prioritize potential churners. Tracking competitors' give-back ratios ensures a loyalty program offers competitive rewards. Redemption catalogs should be optimized for loyalty, cost, and competition by reducing time to complete small redemptions and tier effects on large redemptions.
The Ultimate Guide to Customer Loyalty in 2017Margaret Link
For brick-and-mortar businesses, building true customer loyalty is both an art and a science. At Thanx, we're bringing you the stats, tools, and takeaways to help you capture data that grows business through customer loyalty.
The document discusses loyalty programs and provides best practices for developing successful programs. It notes that loyalty program memberships have grown significantly in recent years. Key elements for success include targeting offerings, offering the right rewards, understanding customers, effective communication, and measuring results. Innovative programs are integrated with payments, marketing, customer service, supply chain, and employee programs. The document concludes there is an opportunity for restaurants to develop profitable loyalty programs.
A multi-partner coalition loyalty program allows retailers to pool resources and customers. It provides advantages like lower costs, a larger customer base, and more customer data. However, retailers lose some control and branding. The document discusses the key components of a coalition program, including how partners issue and redeem points, how the financial model works, and examples of existing programs around the world.
Loyalty Leaders Tell All: Using Data to Create RelevanceVivastream
The document discusses challenges facing marketers in using customer data and loyalty programs. It summarizes key details about loyalty programs from GameStop, U.S. Bank, and JetBlue. The panel discusses how these companies use customer data to create relevant experiences, change customer behavior, and design successful loyalty programs.
Maria Del Amo and Steve Miller presented in a webinar sponsored by NAFCU Services new strategies to onboard new members. We took a look at current trends in the creidt union space and offer insight on how to maximize Credit Union's communications efforts to attract, retain and grow their membership.
This document summarizes the key findings of a 2015 Australian consumer research study on loyalty programs. Some of the main points include:
- Membership in loyalty programs has slightly decreased from 88% in 2013 to 84% in 2015. However, the average number of memberships per person has remained steady at around 4.
- The percentage of actively engaged members, defined as using their membership in the last 12 months, has increased significantly from 28% in 2013 to 59% in 2015.
- Immediate price discounts and point-based redemption programs remain the most important benefits to members, preferred over tiered membership levels.
- The research also identified 9 new insights into what impacts brand loyalty and loyalty program success, such
This document summarizes the key findings of a 2015 Australian consumer research study on loyalty programs. Some of the main points covered include:
- Membership of loyalty programs has slightly decreased from 88% in 2013 to 84% in 2015. The average number of program memberships remains around 4.
- The percentage of active members, defined as using their membership in the last 12 months, has increased significantly from 28% in 2013 to 59% in 2015.
- Programs continue to be seen as valuable by most members, with over 80% tending to buy more from brands they have a membership with.
- The top mentioned programs doing a good job remain Coles/flybuys, Woolworths
Top ten benefits of outsourcing customer loyalty retail programs (https://goo.gl/amf6b7) to specialized companies. Features mechanics of loyalty programs, advantages of customer loyalty programs, critical questions that make a successful customer loyalty program and more.
Invensis Technologies (http://www.invensis.net) a leading IT BPO company with more than 14 years of experience, specializes in providing customer loyalty program management and customer retention services (https://goo.gl/Nmnq6l) to clients worldwide.
Please contact us at sales {at} invensis {dot} net OR Call us Now from US +1 (302)- 261-9036, UK +44 203 411 0183, AUS +61 3 8820 5183, IND +91 80 41155233 for more details on our services.
Loyalty Program Management System for RetailScienceSoft
The document describes a loyalty program management system for retailers. It includes capabilities for maximizing customer engagement, improving retention, personalizing communications, and analyzing customer behavior. The solution integrates CRM, a customer portal, mobile app, and analytics to provide a comprehensive loyalty program that segment customers, offers rewards, and gains insights from customer data.
Expert strategies for your loyalty programArun Krishnan
The document provides an overview of strategies for implementing a successful loyalty program using SAP Loyalty Management. It discusses the current state of customer loyalty, an overview of SAP Loyalty Management capabilities, a case study of a loyalty program implementation, and 8 leading practices for a loyalty program. The leading practices include focusing on acquiring customer data, aligning the loyalty experience to the brand, engaging members with personalized content, excelling at core program benefits, harnessing partner networks, empowering brand advocates, increasing member wallet share, and reducing marketing costs.
How to Build a Killer Customer Loyalty Program for Your Business Kabbage
The concept of a customer loyalty program is simple – your customers are rewarded for repeating their business, and your revenue as a business increases from their support. Most big brands from Starbucks to Safeway, Walgreens and Best Buy feature customer loyalty programs. But customer loyalty isn’t just for big business – it’s a key strategy for small business owners to scale revenue and build lasting relationships with the people who matter most – loyal fans of your business and product. In this webinar, we’ll go over everything you need to know to build a killer customer loyalty program, including:
- How to define customer loyalty and why it's important
- How to do customer loyalty right: the dos and don'ts
- Using data and mobile to drive loyalty
- Importance of branding and fraud prevention
- Loyalty apps and tools to use
- How customer loyalty can be used in each business industry/vertical
Berman (2006) developing an effective customer loyalty program[1]Tuan Le Anh
This document discusses developing effective customer loyalty programs. It begins by describing the history and types of loyalty programs, from early stamp programs to modern frequent flyer miles programs. It then notes that while loyalty programs are very popular, many are not successful at achieving their goals of increased customer loyalty and sales. The document differentiates between four types of loyalty programs and provides examples. It concludes by discussing potential benefits an effective loyalty program could provide, such as increased customer retention and reduced price sensitivity, but notes that well-run programs are needed to realize these benefits.
For Love or Money 2016_ExecSummary_FINALAdam Posner
This document provides an executive summary of a research study on Australian loyalty programs and their impact on customer loyalty. Some key findings from the study include:
1) Membership in loyalty programs remains steady, with 82% of Australians enrolled in at least one program. On average, members belong to 3.9 programs.
2) Engagement with loyalty programs is changing, with members being less actively engaged with all of their programs but more engaged with most programs.
3) The top 10 most mentioned loyalty programs doing a very good job according to members are Coles/flybuys, Woolworths Rewards, Qantas Frequent Flyer, Virgin Velocity, MYER one, Priceline Sister
Everyone has a creative potential! Yes that's right. We all have the innate capacity for creative activity. ZaVue Solutions deals with providing novel business ideas and an opportunity to do online writing to earn a good amount in your lives.
Website: http://zavuesolutions.com/
Like and share our Facebook page to get updates;
https://www.facebook.com/zavuesolutions/
This document discusses the impact of loyalty programs on customer retention and satisfaction. It provides data showing that customer satisfaction reduces churn rates and increases cross-selling. When loyalty programs are working properly, members report higher satisfaction than non-members. During a "churn crisis", loyalty program members had significantly lower churn rates than non-members, demonstrating the impact of the program. The document also includes an author biography providing experience with designing and implementing various loyalty programs.
This document describes the evolution of card-linked offers (CLOs) and introduces a new coalition loyalty-based CLO model. Traditional CLOs provided single-use discounts but did not build long-term loyalty. The new model allows customers to earn rewards from multiple merchants that aggregate into a common currency to redeem for fuel savings, encouraging repeat purchases. Merchants benefit from more customer data and marketing opportunities through a broader coalition loyalty program.
Telecom operators require to proactively engage customers. The Telecom Loyalty Programs allow the service providers to run high-quality and advanced loyalty programs of different scales that validate their sales and marketing strategies with to retain existing customers & acquire new ones.
Read more: http://www.mahindracomviva.com/products/customer-value-management/mobilytix-suite/mobilytix-loyalty-management-solution.htm
ICEW 2013 Amanda Cromhout - Big Data: the key to making customer-centric cha...TheFocusGroup
Regardless of the type of organisation, you need to mine your data to provide a truly customer-centric offering. Your data should be at the heart of your product strategy. Amanda encourages organisations to explore under the tip of the iceberg, diving deep into the data you hold on them to maximise your sales and profits.
How to implement a customer loyalty program for ecommerceZinrelo loyalty
This webinar presentation by ShopSocially and Demandware will show you how Predator Nutrition, a leading ecommerce store, implemented a 360 degree customer engagement model and generated 1000s of loyal enrolments in just 6 months!
These slides will help you:
• Understand how loyalty marketing can get you up to 26% more repeat sales
• Learn actionable tips for setting up your own loyalty program
• Discover how Predator Nutrition achieved a 33% higher average order value (AOV)
Use of sna and give back ratio monitoring to improve cost effectiveness of yo...Benjamin FILAFERRO
Use of social network analysis (SNA) and tracking competitors' give-back ratios can help improve the cost effectiveness of loyalty programs. SNA can identify important customer segments and influential customers to target. It can also help prioritize potential churners. Tracking competitors' give-back ratios ensures a loyalty program offers competitive rewards. Redemption catalogs should be optimized for loyalty, cost, and competition by reducing time to complete small redemptions and tier effects on large redemptions.
The Ultimate Guide to Customer Loyalty in 2017Margaret Link
For brick-and-mortar businesses, building true customer loyalty is both an art and a science. At Thanx, we're bringing you the stats, tools, and takeaways to help you capture data that grows business through customer loyalty.
The document discusses loyalty programs and provides best practices for developing successful programs. It notes that loyalty program memberships have grown significantly in recent years. Key elements for success include targeting offerings, offering the right rewards, understanding customers, effective communication, and measuring results. Innovative programs are integrated with payments, marketing, customer service, supply chain, and employee programs. The document concludes there is an opportunity for restaurants to develop profitable loyalty programs.
A multi-partner coalition loyalty program allows retailers to pool resources and customers. It provides advantages like lower costs, a larger customer base, and more customer data. However, retailers lose some control and branding. The document discusses the key components of a coalition program, including how partners issue and redeem points, how the financial model works, and examples of existing programs around the world.
Loyalty Leaders Tell All: Using Data to Create RelevanceVivastream
The document discusses challenges facing marketers in using customer data and loyalty programs. It summarizes key details about loyalty programs from GameStop, U.S. Bank, and JetBlue. The panel discusses how these companies use customer data to create relevant experiences, change customer behavior, and design successful loyalty programs.
Maria Del Amo and Steve Miller presented in a webinar sponsored by NAFCU Services new strategies to onboard new members. We took a look at current trends in the creidt union space and offer insight on how to maximize Credit Union's communications efforts to attract, retain and grow their membership.
This document summarizes the key findings of a 2015 Australian consumer research study on loyalty programs. Some of the main points include:
- Membership in loyalty programs has slightly decreased from 88% in 2013 to 84% in 2015. However, the average number of memberships per person has remained steady at around 4.
- The percentage of actively engaged members, defined as using their membership in the last 12 months, has increased significantly from 28% in 2013 to 59% in 2015.
- Immediate price discounts and point-based redemption programs remain the most important benefits to members, preferred over tiered membership levels.
- The research also identified 9 new insights into what impacts brand loyalty and loyalty program success, such
This document summarizes the key findings of a 2015 Australian consumer research study on loyalty programs. Some of the main points covered include:
- Membership of loyalty programs has slightly decreased from 88% in 2013 to 84% in 2015. The average number of program memberships remains around 4.
- The percentage of active members, defined as using their membership in the last 12 months, has increased significantly from 28% in 2013 to 59% in 2015.
- Programs continue to be seen as valuable by most members, with over 80% tending to buy more from brands they have a membership with.
- The top mentioned programs doing a good job remain Coles/flybuys, Woolworths
For love or_money_loyalty_research_2015Adam Posner
Consumer research study taking the pulse on Australian loyalty programs and their impact on customer loyalty.
70 page insight-packed report
Tracks the pulse of change to benchmark results from 2014 and 2013 research studies
Reveals new insights that impact on brand loyalty and loyalty program success
This document summarizes the key findings of a 2015 Australian consumer research study on loyalty programs. Some of the main points include:
- Membership in loyalty programs has slightly decreased from 88% in 2013 to 84% in 2015. However, the average number of memberships per person has remained steady at around 4.
- The percentage of actively engaged members, defined as using their membership in the last 12 months, has increased significantly from 28% in 2013 to 59% in 2015.
- Immediate price discounts and point-based redemption programs remain the most important benefits to members, preferred over tiered membership levels.
- The research also identified 9 new insights into what impacts brand loyalty and loyalty program success, such
For love or_money_loyalty_research_2015Adam Posner
Consumer research study taking the pulse on Australian loyalty programs and their impact on customer loyalty.
70 page insight-packed report
Tracks the pulse of change to benchmark results from 2014 and 2013 research studies
Reveals new insights that impact on brand loyalty and loyalty program success
For the first time, reviews 28 Australian loyalty programs
The customers overall commitment to the brand or service, in part because of an emotional attachment to that relationship, and the consistency of the brand that ensures an elite level of trust between the brand and the consumer.
1) The document discusses how loyalty programs are evolving from purely transactional rewards programs to programs focused on building emotional connections with customers through shared values and causes.
2) It provides examples of how Patagonia and Walgreens have built loyalty by openly supporting environmental causes and partnering with health/fitness apps to reward customer wellness.
3) The key recommendation is for brands to identify their values, make them known publicly, and leverage loyalty programs to engage customers in learning about and supporting those same values and causes through special offers, content, and community involvement.
Ikano White Paper - The Future of LoyaltyLaura Scully
A survey of over 26,000 customers by loyalty program experts Ikano revealed three key trends for the future of loyalty programs: 1) 52% of respondents wanted a mobile app to replace their loyalty card due to the growing use of smartphones, 2) 34% wanted to use the app to manage their loyalty account information, and 3) 59% wanted to set their own communication preferences to receive only relevant offers. The survey findings suggest customers want more control and convenience through mobile apps to better serve their evolving needs.
The survey aimed to determine if customers of Reliable would be willing to pay for a loyalty program. Most respondents currently participate in other loyalty programs and want benefits like customized rewards and online tracking. Over half would pay $25 annually for a 20% discount program. Results suggest a free-to-paid model where basic benefits are free and enhanced benefits require a fee. Respondents favored gift cards, birthday gifts, and exclusive products as rewards. The data supports that a loyalty program would be well-received if it offers tailored rewards and a balanced free-to-paid structure.
Fixing the Cracks: Reinventing Loyalty Programs for the Digital AgeCapgemini
Launching a loyalty program is expensive and it’s complex. In the US alone, companies spend a staggering $2 billion on loyalty programs every year. But does this translate into increased customer engagement? Research suggests the answer is “probably not”. The average household in the US has over 21 loyalty program memberships. But, the household only actively uses 44% of these. More than half of consumers in a 2013 survey admitted they had abandoned at least one loyalty program in the past year. Our own analysis of customer sentiment on social media revealed pronounced dissatisfaction. Almost 90% of social media sentiment on loyalty programs was negative.
We assessed loyalty programs on a number of parameters. These included their central objective, their use of digital channels, and their ability to provide a seamless experience across channels (more detail on the approach is at the end of this paper). We found, in short, that companies have a lot of catching up to do. 97% of loyalty programs rely on transactional rewards, i.e. a customer makes a purchase and takes their points in exchange for gifts, merchandise or cash. The issue is that 77% of those transaction-based programs actually fail in the first two years. According to our research, only 25% of loyalty programs reward customers for some form of engagement. Where loyalty programs are also lacking is advanced personalization: only 11% of loyalty programs offer personalized rewards based on a customer’s purchase history or location data.
This research highlights why organizations need to think beyond points and how they can implement well-designed, engagement-based loyalty programs.
The document discusses how traditional loyalty programs are failing to engage customers in the digital age. Some key points:
- Most loyalty programs are transaction-based and fail to reward customer engagement. Only 25% reward activities like reviews.
- Customer experience across channels is lacking, as most don't allow rewards redemption across all channels.
- Personalization is still basic, relying on tier systems rather than individualized offers.
- A survey found 89% of social media sentiment on loyalty programs was negative, largely due to irrelevant rewards and poor user experiences.
- Successful programs like Starbucks, O2, and Walgreens integrate loyalty seamlessly into the customer experience, offer personalized rewards, and leverage social media engagement. The document
Members are willing to share some personal information with loyalty programs if:
- They understand how their data will be protected and used in a relevant way to benefit them.
- Loyalty programs are transparent about what data they collect and how it will be used.
- In exchange, members receive meaningful rewards tailored to their interests and preferences.
However, members will be reluctant to share information or defect from programs if they feel their data is being mined or used for irrelevant purposes. The appropriate use of member data is key to maintaining trust in the relationship.
CRM and loyalty marketers at all major retailers know that today’s mobile consumers are evolving rapidly, and have heightened expectations for their favorite retailers. What they may not know is that new mobile technologies, such as Google Wallet and Apple’s Passbook, are transforming retailer’s ability do deliver value to their most loyal customers. When used in tandem with loyalty programs, these innovative mobile wallets can amplify loyalty programs by making them more relevant, contextual, timely and useable.
Featuring: Emily Collins, analyst at Forrester Inc., and Julie Novack, Senior Vice President of Mobile Solutions at Vibes.
This document summarizes key findings from the 2013 Maritz Loyalty Report on consumer loyalty programs in the United States. Some of the main findings include:
1) Consumers participate in an average of 7.4 loyalty programs but feel they have room for more. Communications play a significant role in satisfaction, but only 53% find communications relevant.
2) Privacy is a growing concern, with 24% citing it as a barrier to enrollment. Personalization requires personal information, but consumers find some uses of data "creepy."
3) Loyalty programs influence consumer behavior, with 57% modifying purchase behavior to earn rewards, but 53% stopped participating in at least one program last year.
This document discusses the results of a survey of over 3000 loyalty program members. It finds that:
1) Customers want relevant communications from brands on their own terms, rather than frequent emails, and will disengage if their expectations are not met.
2) Younger customers prefer rewards like prize draws and partner offers, while older customers prefer exclusive access and previews.
3) Not all customers are active on social media, so brands should use a variety of channels for communications.
4) Loyalty programs are still effective at increasing customer spending, though the relationship varies by age.
Consumers are often misunderstood in their motivations and behaviors related to loyalty programs. This document summarizes findings from a study of over 2,000 consumers and their engagement with loyalty programs:
1) While many assume members will resist fees, 48% of consumers are willing to pay an upfront membership fee if rewards are valuable enough.
2) Enrollment does not guarantee engagement - 21% can recall joining a program but never participating. The most common reasons for disengagement are rewards being too difficult to earn.
3) Contrary to assumptions around redemption, 56% of members save points without a specific redemption in mind. Program communication is important to continued participation.
4) Removal
Market probe loyalty programs vs. loyalty behavior white paperMichael Lowenstein
1) The document discusses loyalty programs and their effectiveness in driving desired business outcomes like increased sales and customer retention. It notes that many programs fail to leverage customer data or encourage advocacy.
2) It then describes a study of a wine club loyalty program called the Wine Lovers Club that had many components but lacked focus and failed to engage members.
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3. Welcome to the
first Australian
research study
into consumers’
relationships with
loyalty programs.
4. 1.0 Introduction 1
2.0 Executive Summary 3
3.0 Research methodology and profile of participants 7
4.0 Findings in detail 9
4.1 Reach of loyalty programs in Australia 9
4.2 Who loves loyalty programs? 11
4.3 Who is more actively interacting with loyalty programs? 15
4.4 What behaviour does the love of loyalty programs drive? 19
4.5 Where can loyalty programs improve? 25
4.6 For love or money? What features and benefits of loyalty programs do
consumers care about? 29
4.7 Who cares about which benefits? 37
4.8 The love of loyalty programs vs the benefits offered 39
4.9 Which communication channels do they love? 41
4.10 Which loyalty programs do they care about? 43
4.11 Consumers’ comments about loyalty programs – the good and not so good 45
5.0 Behind the research – the people who love loyalty programs 47
Contents
6. 2
We sought to find out if being a member
of a loyalty program was for the love (of
the brand) or for the money (rewards). We
wanted to find out if being a member made
them care enough to:
Influence their buying behaviour.
Be more loyal to the brand whose program
they were a member of.
This research study conducted with more
than 1,000 consumers answers these two
questions and explores:
1. the penetration of loyalty programs with
some demographic differences
2. who is more actively involved with their
programs
3. their view on the value that programs offer
4. what’s important to them with regard to
program structures, features and benefits
and
5. communication preferences
Thank you for your interest in the Australian
consumer’s point of view on loyalty programs.
Directivity and Citrus together with
First Point Research and Consulting are
pleased to present what we believe is
the first research study into consumer
relationships with loyalty programs in
Australia.
Loyalty programs, frequent buyer programs, VIP
clubs, discount rewards and any combination
of these are continuing to clutter the Australian
market and scream for the attention of their
members.
There are many programs in the market and
brands continue to evaluate why they should have
a program (if they don’t) or how to continuously
improve (if they do). While there have been
a number of overseas research studies, we
could not find any in Australia that provided a
consumer’s perspective on loyalty programs they
engage in – or don’t.
With this in mind, we wanted to get to the heart
of how consumers in Australia really feel about
loyalty programs and specifically those they are
members of.
Whether you are planning to implement a loyalty
program or already have a program, we are
confident you will find insights that will make you
think more about how your program can be even
more relevant and valuable to your members, and
therefore more profitable for your business.
Please read on and find out if Australian
consumers really care about the loyalty programs
they are a member of.
1
2
1
2
3
4
5
Adam Posner
CEO
Directivity
Pete Noble
CEO
Citrus
8. 4
Buying behaviour
Australian consumers certainly do buy more from
companies whose programs they are a member of.
In fact, 80% buy more.
They also tend to buy from companies who have a
loyalty program versus those who don’t. When faced
with choosing two similar products/companies – one
with a loyalty program and one without – 55% of
consumers tend buy from the one that has a loyalty
program.
So if you are facing a competitive environment
and the behaviour you want is for your
customers to choose you over a competitor,
then a loyalty program does influence the
choice of who they buy from.
This means if you don’t have a program, you should
seriously consider one.
If you do have a program, then dig a bit deeper into
this research and see what customers value from
their loyalty programs and see if you match up.
Let’s get to the point.
Firstly, loyalty programs do influence buying behaviour – consumers buy more from companies whose
program they are a member of and they choose to buy from companies with a program vs those without.
However, loyalty programs do not equal customer loyalty.
Feeling of loyalty
As for ‘feeling more loyal to a brand whose program
they are member of’ - less than half (46%) tend to
feel more loyal. This is a close call on whether a
loyalty program actually drives a feeling of loyalty.
It’s our view that loyalty programs on their own do
not engender loyalty, as there are many factors
that influence loyalty, not just a program.
Therefore loyalty programs do not equal customer
loyalty.
80%
buy more from
companies whose
programs they
are a member of
55%
will choose a product/company with a
loyalty program over one without
46%
feel more loyal
to a brand
because of a
loyalty program
9. 5
Key insights.
It’s crowded - find your
crowd.
Loyalty programs are well established in the
Australian shopping community, with 88% of
consumers over the age of 16 being members of
a loyalty program. So you need to really find a way
through the crowd and be valuable to your crowd.
There are some loyalty lovers out there, with 11% of
consumers being members of more than 10 loyalty
programs.
Not all customers
are equal.
Men are members of fewer programs (average 3)
but more active with the memberships, presenting
their card at the point of purchase or actively
looking to accrue points. Women are members of
more programs (average 5) and tend to spread their
spend across more programs. Keep an eye on older
customers (55+) as they tend to buy more, choose
from brands that have a program, but believe more
strongly that programs don’t provide any real value.
Just because you have a loyalty program, doesn’t
mean it’s working.
Only 41% of consumers feel that loyalty programs have improved in recent years and offer good
benefits to members. This presents a great opportunity for loyalty programs to strive to be more
valuable. Program features and benefits that consumers prefer are still financial, although ‘surprise
and delight’ are also well regarded.
88%
belong to a
loyalty
program
12%
don’t belong
to a loyalty
program
11%
belong to more
than 10 loyalty
programs
NO. OF CARDS
1
2
3
10. 6
Talk to me.
At 81%, personalised email is by far the most
preferred channel to communicate with members,
followed by direct mail (37%). Mail particularly
appeals to tech-savvy consumers under 25 due
to the novelty factor and the association of ‘good
news’ rather than older members who are likely to
associate letters with bills!
Surprising members with unexpected rewards are
highly sought after. Programs which offer ‘surprise
and delight’ benefits will go a long way to overcoming
consumers’ belief that programs don’t offer any real
value.
Show me the money.
Financial benefits are still the most sought after
program benefit, with 80% of consumers seeking
immediate price discounts when making purchases.
Points-based programs that enable members to
redeem points for vouchers or other rewards are
also important (77%). Exclusive offers (64%) and
access to more rewards based on spend (62%)
also rank highly with consumers.
The key to a
successful
loyalty
program
4
5
Surprise!Surprise!
A winning program is one with multiple emotional and transactional benefits.
Consumers who ‘tend to feel more loyal to the company/brand when I am a member of their loyalty
program’ consistently place higher importance (than the average consumer) on ALL listed loyalty
program features - from transactional to emotional.
Programs with multiple financial and emotional benefits in their program framework are better placed
to build genuine loyalty with their members.
81%
37%
<25s
prefer
personalised
email
prefer
direct mail
like personalised
letters
80%
feel the
discount
is most
important
77%
feel the
points for
rewards
are more
important
12. 8
Research
method
and profile
of research
participants.
The research was conducted
independently by First Point Research
and Consulting in February 2013
through an online panel of Australian
consumers, men and women 16 years+.
The research was structured to gain some
quantitative results with comparative analysis as
well as free form questions to gain a sentiment
of how consumers feel towards the programs
they are a member of and how programs should
improve.
Programs were named - some shamed, some
cheered. The richness of the free-form responses
is enlightening.
The total sample of N=1010, provides a margin
of error of +/- 3% at a 95% level of confidence.
Broad quotas were set for age and gender.
Gender Location
Marital Status
57% Married
68% No dependent children
9% Widowed/divorced/
separated
32% Single
32% Dependent children
2% Prefer not to say
Age
Dependent children
Household income
52%
48%
35%
18%
part of
NSW
9%
10%
25%
3%
16-24
years
9%
26%
18%
15% 17%
9%
15%
25-34
years
29%
45-54
years
16%
55-64
years
17%
65+
years
8%
35-44
years
21%
$50,000
- $74,999
$75,000-
$99,999
$100,000
- $149,999
$150,000
or more
Refused
to say
Under
$50,000
14. 10
Loyalty
programs in
Australia reach
far and wide.
Not too surprising, however we now
have a benchmark.
of Australian
consumers over
the age of 16 are
members of a
loyalty program.
88%
NoYesTotal sample (N = 1010)
16. 12
Female (N = 525) Male (N = 485)
93%
82%
Warning!
Don’t let this mislead you! Further in the report findings
reveal that men are more actively involved with programs
they are a member of.
of women are much
more likely to be
members of a loyalty
program than men.
93%
17. 13
CHILDREN: AGE:
of people with dependent children are members
of at least one loyalty program which for those
families looking for savings or rewards, loyalty
programs make sense.
There is a fairly even spread of age groups who participate in
loyalty programs.
92%
16-24
years
25-34
years
45-54
years
55-64
years
65+
years
35-44
years
83%
88%
91%
88%
85%
85%
92%
18. 14
How many programs
are Australians a
member of?
Men are members of about 3 programs
on average and women closer to 5
programs.
Interestingly, 11% of all respondents are
members of 10 or more programs.
(Again, don’t let the volume of programs
mislead you, as the level of activity in their
programs is more enlightening).
Male (N = 396) Female (N = 488)
3.3 4.7
loyalty
programs
loyalty
programs
Clutter?
Perhaps our wallets/purses are not as cluttered
as you may think, which still presents an
opportunity for loyalty marketers.
20. 16
Active = “you present
your card or membership
number when making
purchases”.
ACTIVE:
of consumers are active
in all of their programs,
by presenting their
cards or membership
number when making
purchases.
Only
45%
Active = engaged?
If active = engaged, then there is certainly room to improve.
It’s fair to say that if your program is one of a few in your category, then it’s clear that
you need to evaluate how to get your members to be ACTIVE in yours. More insights on
how to do that follows.
I try to keep my card handy.
I am cross when I don’t get
to add points because I have
forgotten my card.
Female, 45-54yo, NSW
Some don’t engage with their
members as much as others &
therefore I tend to not use those
brands so much.
Female, 25-34yo, NSW
45%
30%
15%
9%
1%
Use all of them Use most of
them
Use about half of
them
Use not many of
them
Use none of
them
Base: Members of a loyalty program (N=884)
21. 17
Men are more
committed to
their loyalty
programs.
MEN:
of men are active in all
of their loyalty programs
vs 41% of women.
With fewer cards, its clear that men are more
deeply committed to the loyalty programs they
belong to than women.
49%
We ignored Flybuys for many years when it took a huge amount of expenditure to get any benefit.
Now, combined with fuel vouchers and Frequent Flyer points on the credit card, shopping at Flybuys
retailers makes sense. So keep the rewards at an achievable and worthwhile level.
Male, 55-64yo, QLD
Nearly everyone has a loyalty programme – and that diminishes the value of what they are for. You
seem to be treated liked an alien if you are not a member and use a business that has one.”
35-44 YO male, NSW
Use all of them Use most of
them
Use about half of
them
Use not many of
them
Use none of
them
Total Men Women
15%45% 30% 9% 1%
Base: Members of a loyalty program (N=884)
49% 29% 12% 8% 2%
41% 31% 18% 9% 1%
22. 18
Women are
less engaged
with their loyalty
programs.
WOMEN:
of women are active
in all of the loyalty
programs they belong to.
of women are active in
half or less than half of
the loyalty programs
they are members of.
While women belong to more loyalty
programs than men, only
As the primary shopper in most cases, women
are exposed to more opportunities for loyalty
programs, which in turn motivates women
to spread their loyalty across those various
programs.
In competitive categories, the program really
needs to differentiate itself to gain a woman’s
total commitment.
41%
28%
Please remember that Loyalty programs are a two-way street. It can’t just be about collecting
information about the way a person shops – there needs to be a benefit for the cardholder as well.”
35-44 YO female, NSW
Use all of them Use most of
them
Use about half of
them
Use not many of
them
Use none of
them
15%45% 30% 9% 1%
Base: Members of a loyalty program (N=884)
49% 29% 12% 8% 2%
41% 31% 18% 9% 1%
24. 20
of consumers buy more
from companies whose
program they are a
member of.
80%
They buy more.
Consumers who are a member of a
loyalty program do buy more.
BUY MORE:
If you are developing a loyalty
program, here is one very good reason
for a program – consumers buy more.
I tend to buy more from the companies whose program I
am a member of
When choosing between two similar products/companies,
one who has a loyalty program and one who does not, I
tend to buy from the one that has a loyalty program.
I tend to feel more loyal to the company/brand when I am
a member of their program
Loyalty programs have improved a lot in recent years and
tend to offer good benefits to members
Most loyalty programs don’t offer me any real value
Most loyalty programs just don’t seem to understand how
to communicate appropriately with their members
% Strongly Agree / Agree
80%
55%
46%
41%
40%
27%
The more that customers are rewarded, the more likely they are to shop at a particular store. If retail
sales are in such a slump, retailers have a perfect opportunity to offer loyal customers incentive to
spend.” 25-34 YO female, Victoria
I like it when they give you 10% discount if
you spend over $50 and it is taken off your
grocery bill immediately. When that happens I
will make a special effort to spend $50 (which
is more than my regular weekly spend).”
55-64 YO female, NSW
Base: Members of a loyalty program (N=884)
25. 21
of consumers when faced with choosing two similar products/
companies, one who has a loyalty program and one who does
not, tend to buy from the one that has a loyalty program.55%
They choose
to buy from the
company with a
program.
More than half of Australian consumers
tend to buy from companies who have a
loyalty program vs those that don’t.
CHOOSING:
If your competitors have a loyalty program and you do not, good chance
you are losing business.
Base: Members of a loyalty program (N = 884)
I tend to buy more from the companies whose program I
am a member of
When choosing between two similar products/companies,
one who has a loyalty program and one who does not, I
tend to buy from the one that has a loyalty program.
I tend to feel more loyal to the company/brand when I am
a member of their program
Loyalty programs have improved a lot in recent years and
tend to offer good benefits to members
Most loyalty programs don’t offer me any real value
Most loyalty programs just don’t seem to understand how
to communicate appropriately with their members
% Strongly Agree / Agree
80%
55%
46%
41%
40%
27%
Don’t create a program for the sake of it. Loyalty needs to be earned. While the benefits don’t have
to be big, they have to be in proportion to what the company does or sells. One free coffee in 10 is
generous. $10 off a $200 grocery bill is not.” 45-54 YO female, NSW
26. 22
of consumers strongly agree/agree that they
tend to feel more loyal to the company/brand
when they are a member of their loyalty program,
which leaves the rest who are neutral or do not
agree.
Consumers are not loyal
to a brand just because
they are a member of
their loyalty program.
Loyalty programs do not equal customer loyalty.
Less than half feel more loyal to a brand when a member of their program.
FEELINGS OF LOYALTY:
I tend to buy more from the companies whose program I
am a member of
When choosing between two similar products/companies,
one who has a loyalty program and one who does not, I
tend to buy from the one that has a loyalty program.
I tend to feel more loyal to the company/brand when I am
a member of their program
Loyalty programs have improved a lot in recent years and
tend to offer good benefits to members
Most loyalty programs don’t offer me any real value
Most loyalty programs just don’t seem to understand how
to communicate appropriately with their members
% Strongly Agree / Agree
80%
55%
46%
41%
40%
27%
Although it’s a close call on whether a loyalty program actually
drives loyalty, it’s our view that it does not as there many other
factors that influence loyalty, not just a program.
As a pensioner on a limited income any kind or reward is a bonus but the
low rewards do not make me want to be loyal to the business.”
45-54 YO female QLD
46%
only
27. 23
A loyalty ‘card’ does not maketh a loyalty
program. Unless being a part of this program
entitles you to rewards, discounts, free gifts,
exclusive invitations or something special over
and above what other customers receive, I
have no incentive to give retailers all my details.
I am happy to give them this information for
sales and statistical analysis of purchasing,
however I deserve something in return.”
Female, 25-34 yo, Victoria
28. 24
Which age groups care about
loyalty programs even more?
I tend to buy more from the companies whose program I
am a member of
When choosing between two similar products/companies,
one who has a loyalty program and one who does not, I
tend to buy from the one that has a loyalty program.
I tend to feel more loyal to the company/brand when I am
a member of their program
Loyalty programs have improved a lot in recent years and
tend to offer good benefits to members
Most loyalty programs don’t offer me any real value
Most loyalty programs just don’t seem to understand how
to communicate appropriately with their members
80%
77%
80%
85%
55%
49%
55%
63%
46%
46%
46%
48%
41%
41%
39%
45%
40%
41%
43%
54%
27%
31%
27%
22%
Total
N = 884
<35 years
N = 338
35-54 years
N = 340
55+ years
N = 206
More mature Australians stand out.
When cross analysing the different age groups to
the behaviours and beliefs, some interesting and
significant differences were highlighted.
55 YO +
• tend to buy more than the rest
• choose more from those brands
who have a program
• believe more strongly that
programs don’t offer them any
real value
30. 26
of consumers feel that loyalty programs have
improved in recent years and tend to offer
good benefits to members. There is certainly
room to improve.41%
only
Loyalty programs have
room to improve –
what a great opportunity.
IMPROVEMENT:
I tend to buy more from the companies whose program I
am a member of
When choosing between two similar products/companies,
one who has a loyalty program and one who does not, I
tend to buy from the one that has a loyalty program.
I tend to feel more loyal to the company/brand when I am
a member of their program
Loyalty programs have improved a lot in recent years and
tend to offer good benefits to members
Most loyalty programs don’t offer me any real value
Most loyalty programs just don’t seem to understand how
to communicate appropriately with their members
% Strongly Agree / Agree
80%
55%
46%
41%
40%
27%
Flybuys is far and away the best loyalty program for me.... I get the most cash back from it. Millers give generous discounts. Video Ezy also have special
offers for members only, although they are spasmodic. Everyday Rewards is a disappointment - seems all you get is a fuel discount. I expect to be
contacted by stores with whom I have a card, yet Blooms, Noni B, Target, Adairs, Rockmans, bras N Things never contact me with product information.
To me, that’s a wasted opportunity for them. Female, 45-54yo, NSW
Base: Members of a loyalty program (N=884)
31. 27
of consumers strongly agree/agree that loyalty programs don’t offer any
real value. 36% are neutral and 24% disagree, which means there are
more consumers who are either on the fence (ready to be proven that
there is value) and the rest who think they are getting value.40%
WHERE’S THE VALUE?
I tend to buy more from the companies whose program I
am a member of
When choosing between two similar products/companies,
one who has a loyalty program and one who does not, I
tend to buy from the one that has a loyalty program.
I tend to feel more loyal to the company/brand when I am
a member of their program
Loyalty programs have improved a lot in recent years and
tend to offer good benefits to members
Most loyalty programs don’t offer me any real value
Most loyalty programs just don’t seem to understand how
to communicate appropriately with their members
% Strongly Agree / Agree
80%
55%
46%
41%
40%
27%
I have some cards that don’t do anything.
Needs to have a value to make it worth my
while.” 25-34 YO female, Victoria
They can be
more valuable.
There are great opportunities for
loyalty programs to strive to be more
valuable to their members.
There are more insights into what
consumers love (what they value) about
loyalty programs further along in this report.
only
32. 28
Programs with minimum number of
purchases before you earn points, rewards
programs where you need to pay annual
membership fees erode the value gained.”
45-54 YO female, NSW
34. 30
It’s all about the money!
financial benefits are still highly sought after by consumers.
Immediate price discounts when making purchases
Point based programs that allow members to redeem
‘points’ for vouchers, products or other rewards
Surprise gifts or surprise rewards that arrive without you
making a redemption
Exclusive offers available to members only
Sending me information that is tailored and personal to
me
Access to more rewards based on the more you spend
with the company
Updates on relevant news about the company and its
products or services
Partnerships with other businesses/brands that can
increase the opportunity to accrue rewards or points
Different levels of reward based on different levels of
spending (eg Gold, Silver and Bronze membership tiers)
% Very important /
80%
77%
67%
64%
46%
62%
37%
61%
36%
Base: Members of a loyalty program (N = 884)
It’s clear that members of loyalty programs are looking for the
hard benefits - especially financial, as a reward for their loyalty.
35. 31
“Offering a change to go in a draw or lottery
is not a reward. Cash and decent discounts
have value. Most other offers have very little
value.” 35-44 YO male, NT
Offers that have an immediate discount
are better than non-tangible and confusing
schemes such as points.
16-24 YO male, Tasmania
Cash is king and all of these reward programs
offer a choice of cash or store vouchers so I
can choose what to buy are better.
35-44 YO male, NSW
36. 32
Surprise! Surprise!
Share the love!
Surprising your loyalty members with rewards that are not expected, are highly sought after!
Base: Members of a loyalty program (N = 884)
Immediate price discounts when making purchases
Point based programs that allow members to redeem
‘points’ for vouchers, products or other rewards
Surprise gifts or surprise rewards that arrive without you
making a redemption
Exclusive offers available to members only
Sending me information that is tailored and personal to
me
Access to more rewards based on the more you spend
with the company
Updates on relevant news about the company and its
products or services
Partnerships with other businesses/brands that can
increase the opportunity to accrue rewards or points
Different levels of reward based on different levels of
spending (eg Gold, Silver and Bronze membership tiers)
% Very important /
80%
77%
67%
64%
46%
62%
37%
61%
36%
37. 33
There could be things given randomly from
time to time – eg: bonus points after shopping
or monetary voucher or just for being a
‘valued customer’. 45-54 YO female, VIC
I buy all my cosmetics and healthcare
products in this store and receive a loyalty
cheque in the mail which comes as a nice
surprise. 65-74 YO female, NSW
The (MYERone) gift cards are automatically sent
out, you don’t have to log on and ‘redeem’ anything
so it’s a nice surprise to open the letterbox and
have a gift card waiting.” 25 YO female, QLD
38. 34
They also care about exclusivity and a lot more.
They also care about the love they get through exclusive offers for being a loyalty program member,
Access to more rewards based on their spend and more opportunities accrue rewards/points through partners.
Base: Members of a loyalty program (N = 884)
Immediate price discounts when making purchases
Point based programs that allow members to redeem
‘points’ for vouchers, products or other rewards
Surprise gifts or surprise rewards that arrive without you
making a redemption
Exclusive offers available to members only
Sending me information that is tailored and personal to
me
Access to more rewards based on the more you spend
with the company
Updates on relevant news about the company and its
products or services
Partnerships with other businesses/brands that can
increase the opportunity to accrue rewards or points
Different levels of reward based on different levels of
spending (eg Gold, Silver and Bronze membership tiers)
% Very important /
80%
77%
67%
64%
46%
62%
37%
61%
36%
39. 35
They DON’T care that much about the company
and tiered rewards are not important.
Consumers are NOT that interested in news about your company, they are more focused on WIIFM.
Immediate price discounts when making purchases
Point based programs that allow members to redeem
‘points’ for vouchers, products or other rewards
Surprise gifts or surprise rewards that arrive without you
making a redemption
Exclusive offers available to members only
Sending me information that is tailored and personal to
me
Access to more rewards based on the more you spend
with the company
Updates on relevant news about the company and its
products or services
Partnerships with other businesses/brands that can
increase the opportunity to accrue rewards or points
Different levels of reward based on different levels of
spending (eg Gold, Silver and Bronze membership tiers)
% Very important /
80%
77%
67%
64%
46%
62%
37%
61%
36%
Only a third of consumers feel that tiered rewards are important.
Base: Members of a loyalty program (N = 884)
40. 36
Levels (bronze, silver and gold) are no
longer relevant. All members should be
treated as Gold.” 35-44 YO male, QLD
42. 38
Consumers over 55 are more
focused on transactional benefits.
77%
72%
68%
64%
62%
60%
41%
33%
37%
80%
78%
69%
63%
61%
61%
49%
36%
35%
85%
64%
64%
63%
63%
36%
Total
N = 884
<35 years
N = 338
35-54 years
N = 340
55+ years
N = 206
They also place significantly
greater importance on the ongoing
communications from loyalty programs.
Point based programs that allow members to redeem
‘points’ for vouchers, products or other rewards
Surprise gifts or surprise rewards that arrive without you
making a redemption
Exclusive offers available to members only
Sending me information that is tailored and personal to
me
Access to more rewards based on the more you spend
with the company
Updates on relevant news about the company and its
products or services
Partnerships with other businesses/brands that can
increase the opportunity to accrue rewards or points
Different levels of reward based on different levels of
spending (eg Gold, Silver and Bronze membership tiers)
80%
77%
67%
64%
46%
62%
37%
61%
36%
51%
43%
84%
I can use the points on other things and the
points are valuable.
Male, 65-74 yo, Victoria, member of QFF and
everyday rewards
The immediate discount at the register is a
great incentive to shop.
Female, 65-74 yo, Victoria, member of
Spotlight
Good communication and excellent rewards
system when compared to other similar
competitors. Great recognition of customers.
Male, 55-64 yo, Tasmania, member of Virgin’s
Velocity program
Immediate price discounts when making purchases
44. 40
Cross analysing how they feel to
which benefits are important.
84%
78%
74%
66%
60%
62%
45%
36%
36%
Total
N = 884
“Most loyalty
programs
don’t offer me
any real value”
N = 338
“I tend to feel more
loyal to companies/
brands when I am
a member of their
program”
N = 340
Programs which have a core element of
‘surprise and delight’ will go a long way
to overcome consumers’ belief (74%) that
programs do not offer any real value.
Consumers who feel that ‘loyalty programs don’t
offer any real value’ are far more likely to place high
importance on ‘surprise gifts or surprise rewards
that arrive without you making a redemption’.
Point based programs that allow members to redeem
‘points’ for vouchers, products or other rewards
Surprise gifts or surprise rewards that arrive without you
making a redemption
Exclusive offers available to members only
Sending me information that is tailored and personal to
me
Access to more rewards based on the more you spend
with the company
Updates on relevant news about the company and its
products or services
Partnerships with other businesses/brands that can
increase the opportunity to accrue rewards or points
Different levels of reward based on different levels of
spending (eg Gold, Silver and Bronze membership tiers)
80%
77%
67%
64%
46%
62%
37%
61%
36%
Loyalty also appears to be more likely
when programs implement a multi-
faceted approach.
Consumers who ‘tend to feel more loyal to the
company/brand when I am a member of their
programs’ consistently place higher importance
than the average consumer on ALL listed loyalty
program benefits (transactional and emotional
rewards).
This suggests that those programs with multiple
financial and emotional benefits in their program
framework are better placed to build genuine
loyalty with their members.
Immediate price discounts when making purchases 88%
87%
75%
76%
77%
78%
58%
49%
47%
45. 4.0
Findings in
detail
4.9 WHICH
COMMUNICATION
CHANNELS DO
THEY LOVE?
Email then mail.
EMAIL:
of consumers prefer
personalised email.
81%
Text Message/
SMS
20%
81%
Personalised
email
37%
Personalised
letter
10%
Facebook
alert or update
41
Base: Members of a loyalty program (N=884). Option to select more than one channel
provided in this survey question.
(Woolworths)
emails are fantastic
and makes you
feel updated as
a member. Their
communication is
the best out of the
clubs. 35-44 YO
female, QLD
46. 42
Older = email vs
younger = mail.
78%
77%
69%
38%
36%
43%
17%
28%
34%
12%
14%
16%
87%
39%
18%
7%
9%
4%
Total
N = 884
35-44 years
N = 338
25-34 years
N = 338
<24 years
N = 338
45-54 years
N = 340
55+ years
N = 206
Personalised
letter
Personalised
email
Text message
/ SMS
Facebook alert
or update
81%
37%
20%
10%
34%
Several differences can be observed
across the age groups:
89%
The theme overall is that younger consumers are likely to be open to engaging in a variety of different
platforms, whereas consumers over 45 years have a distinct preference for email.
Personalised email is favoured far more by
consumers aged 45+, relative to younger
consumers.
Personalised letters are very appealing to
consumers under 25.
The insight here is that old style letters are of
more novel value to younger consumers and are
more likely to be associated with ‘good news’ as
opposed to older consumers who are more likely
to associate letters with bills!
This highlights a little used opportunity to engage
with younger consumers via mail.
Text message or SMS is considered to be
a good option for engagement amongst
the Under 35s in particular.
Similarly, Facebook alerts and updates are
far more appealing to the Under 35s.
From my own experiences, personalised
emails are completely ignored. Contacting by
other means would draw more attention.
16-24 YO male, VIC
47. 43
4.0
Findings in
detail
4.10 WHICH
LOYALTY
PROGRAMS
DO THEY CARE
ABOUT?
Programs and brands
mentioned.
843 consumers commented on the programs they are a
member of.
Accor
Airmiles
AliBaba
Altitude Rewards
Amex
Amcal
ANZ Rewards
Autograph
Athletes Foot
Coffee Club
BB’s
Betts Kids
Boost Juice
Brumbys
Choice Hotels
CBA credit card
Crown Signature
Club
EB Games
Emirates
Event Cinema
Everyday rewards
Fusion
Flybuys
Gloria Jeans
Horseland
Hoyts
Hudsons
IGA
IKEA family
Jeans West
Katies
Millers
Mychemist
MYERone
Muffin Break
National Pharmacy
Oxford
Pet Barn
Priceline
QFF
Rewards Central
Rivers
Rockmans
Snowys Outdoors
Sportscraft VIP
Spotlight
Sumo Salad
Supabarn
Terry White
Toys r Us
Village
Virgin
48. 44
Programs that got the nod as
doing a ‘good job’.
The most mentioned loyalty programs as doing a “particularly good job” are:
Flybuys / Coles
Everyday Rewards, Woolworths
Qantas
MYERone
Priceline
Virgin
CBA Credit Card
IGA
Millers
Rewards Central
Spotlight
All Others
None
37%
22%
11%
6%
5%
2%
1%
1%
1%
1%
1%
<1%
12%
Base: Members of a loyalty program (N = 884)
The fact that 78% of
respondents, without being
given a list of options, provided
the name of a program they
considered to be doing a
‘good job’, suggests that the
vast majority of Australians do
actually see merit in joining a
loyalty program.
49. 4.0
Findings in
detail
4.11
CONSUMERS’
COMMENTS
ABOUT
LOYALTY
PROGRAMS
Priceline
They are constantly in contact with me, letting
me know what’s on sale and what’s going to
be available and what competitions, bonus
buys and offers that members can utilise.
Keeping the brand in my mind by being in
touch all the time.
Female, 24-34 years
MYERone
I like that you don’t need your card to
redeem points in store (via app is great) I
have received vouchers from them - tangible
rewards for spending. It is easy to collect
points as they sell a broad range of products.
Also have had Myer VIP shopping nights as a
reward to customers.
Female, 25-34 years
Sportscraft VIP program
I think it’s quite good value that when you sign
in online as a VIP you get instant discount on
all items on the website. They also have lots
of sales online just for VIP members. I think it
was also great that the sign up was so simple
and could also be done online.
Female, 16-24 years
Millers
Millers is great because not only do they have
cheap clothes, they give you discounts off
sale items too..
Female, 45-64 years
flybuys
Because they update regularly, send
emails with my points balance and discount
vouchers.
Female, 25-34 years
Everyday rewards
I like that it can be linked to my Qantas FF
program. I also like that you can accrue points
simply by purchasing your everyday items,
you don’t need to go out and buy something
that you may never use to accrue points.
Recently, they sent me a keychain to use
as well as my card, this is really handy as
sometimes you don’t have your purse with you,
but you almost always have your keys.
Female, 25-35 years
843 customers gave their point of view.
A few of the good.
45
50. 46
Just make the rewards worth staying with you
for. Don’t make the customer need to spend
millions to redeem chicken feed.”
45-54 yo male, QLD
Some rewards programs are designed for
big spenders in the higher income brackets.
People with low funds, small spenders can
never hope to accrue enough points etc. to
benefit from the program.
55-64 yo female SA
Points that expire are one of the biggest turn
offs. Paying to belong to a loyalty program...
I’m already spending my money at your
business and you expect me to pay you to
belong to your program too??
45-54yo female, SA
I do feel negatively when asked to pay to be
a part of a loyalty program. I did pay $10 I
think to join Bras N Things, but I have to buy
2 bras a year to benefit, so don’t think I will
bother again. I expect a loyalty program to
be free, and to actually have a benefit to me.
I think Just Cuts, for example, is fairly lame,
as they keep no records of me on their pc,
so if I forgot to offer up my discount card,
then it’s as if I never got a haircut. It’s like they
know people will forget, so one never earns
that free hair cut. I don’t think I have ever
benefited from some of the cards I have, so
why do they even bother to have them?
45-54 yo female NSW
Please don’t make the programs too
complicated or time intensive to gain rewards.
And reward points that expire are a waste of
time and misleading.
16-24 YO female, QLD
I just think loyalty programs are all about the
company selling more. It’s not about rewarding
the customers as it’s really aimed at people
who are big buyers.
45-54 YO female, WA.
A few of the NOT so good.
52. 48
Directivity was established in 2007 to provide
customer acquisition and loyalty strategies
for organisations in financial services, energy,
tourism, manufacturing, education, IT and retail.
Adam Posner (CEO) has been involved in a range
of loyalty programs from large retail programs
such as the new flybuys program launched in
2012 as well as the development of self-funding
financial modelling for loyalty programs for
pharmacy and large accommodation networks.
Adam’s obsession with loyalty drove him to initiate
this research study as the first of its kind that digs
deep to understand what Australian consumers
really feel about loyalty programs.
Adam is also the author of the practical book
on loyalty ‘Give-back to Get-back - 9 steps to a
profitable loyalty program’.
Citrus is a specialist digital agency focused on
growing the value of the relationship between
brands and their consumers through key digital
touch points.
With more than 15 years’ experience and a strong
heritage in retail, Citrus has delivered award
winning solutions to leading brands including
Sportsgirl, Metalicus, Review, adidas, Coopers,
Samsonite, TaylorMade, John Frieda, and the
Victoria Racing Club.
Our full service digital capabilities enable us
to build and enhance consumer relationships
through digital communications and loyalty
programs across web, email, mobile and social.
Adam Posner
CEO
Directivity
Pete Noble
CEO
Citrus
53. 49
Directivity
t. 0433 818190
e. adam@directivity.com.au
Level 7, 390 St Kilda Road
Melbourne
Victoria Australia 3004
www.directivity.com.au
Citrus
t. +613 9681 5333
e. info@citrus.com.au
Level 8, 100 Albert Road
South Melbourne
Victoria Australia 3205
www.citrus.com.au