2013 Australian Loyalty Programs

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For love or MONEY?2013 Consumer Study into Australian Loyalty Programs

Welcome to the first Australian research study into consumers’ relationships with loyalty programs.

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

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1.0 Introduction

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.

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2

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2

3

4

5

Adam PosnerCEODirectivity

Pete NobleCEOCitrus

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2.0 Executive Summary

DO LOYALTY PROGRAMS INFLUENCE BUYING BEHAVIOUR AND LOYALTY?

4

Buying behaviourAustralian 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 loyaltyAs 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

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

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

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3.0 Research methodology and profile of participants

WHO GAVE THEIR POINT OF VIEW?

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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%

16-24years

9%

26%

18%15% 17%

9%15%

25-34years

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

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4.0 Findings in detail

4.1 REACH OF LOYALTY PROGRAMS IN AUSTRALIA

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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)

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4.2 WHO LOVES LOYALTY PROGRAMS?

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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%

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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%

16-24years

25-34years

45-54years

55-64years

65+years

35-44years

83% 88% 91% 88% 85% 85%

92%

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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 4.7loyalty

programsloyalty

programs

Clutter? Perhaps our wallets/purses are not as cluttered as you may think, which still presents an opportunity for loyalty marketers.

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4.3 WHO IS MORE ACTIVELY INTERACTING WITH LOYALTY PROGRAMS?

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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)

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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 none of them

Total Men Women

15%45% 30% 9% 1%


49% 29% 12% 8% 2%41% 31% 18% 9% 1%

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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 none of them

15%45% 30% 9% 1%


49% 29% 12% 8% 2%41% 31% 18% 9% 1%

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4.4 WHAT BEHAVIOUR DOES THE LOVE OF LOYALTY PROGRAMS DRIVE?

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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


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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)








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

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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:








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

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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

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Which age groups care about loyalty programs even more?







80% 77% 80% 85%

55% 49% 55% 63%

46% 46% 46% 48%

41% 41% 39% 45%

40% 41% 43% 54%

27% 31% 27% 22%

TotalN = 884

<35 yearsN = 338

35-54 yearsN = 340

55+ yearsN = 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

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4.5 WHERE CAN LOYALTY PROGRAMS IMPROVE?

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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:








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


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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?








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

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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

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4.6 FOR LOVE OR MONEY? WHAT FEATURES AND BENEFITS OF LOYALTY PROGRAMS DO CONSUMERS CARE ABOUT?

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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%


It’s clear that members of loyalty programs are looking for the hard benefits - especially financial, as a reward for their loyalty.

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“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

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Surprise! Surprise!Share the love!Surprising your loyalty members with rewards that are not expected, are highly sought after!











% Very important /

80%

77%

67%

64%

46%

62%

37%

61%

36%

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

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.











% Very important /

80%

77%

67%

64%

46%

62%

37%

61%

36%

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.










% Very important /

80%

77%

67%

64%

46%

62%

37%

61%

36%

Only a third of consumers feel that tiered rewards are important.


36

Levels (bronze, silver and gold) are no longer relevant. All members should be treated as Gold.” 35-44 YO male, QLD

37


4.7 WHO CARES ABOUT WHICH BENEFITS

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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%

TotalN = 884

<35 yearsN = 338

35-54 yearsN = 340

55+ yearsN = 206

They also place significantly greater importance on the ongoing communications from loyalty programs.









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


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4.8 THE LOVE OF LOYALTY PROGRAMS VS THE BENEFITS OFFERED

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Cross analysing how they feel to which benefits are important.

84%

78%

74%

66%

60%

62%

45%

36%

36%

TotalN = 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’.









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%


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

42

Older = email vs younger = mail.

78%77%69%

38%36%43%

17%28%34%

12%14%16%

87%

39%

18%

7%

9%

4%

TotalN = 884

35-44 yearsN = 338

25-34 yearsN = 338

<24 yearsN = 338

45-54 yearsN = 340

55+ yearsN = 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

43


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

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%


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.


4.11 CONSUMERS’ COMMENTS ABOUT LOYALTY PROGRAMS

PricelineThey 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

MYERoneI 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 programI 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

MillersMillers is great because not only do they have cheap clothes, they give you discounts off sale items too..Female, 45-64 years

flybuysBecause they update regularly, send emails with my points balance and discount vouchers.Female, 25-34 years

Everyday rewardsI 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

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.

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5.0 Behind the research – THE PEOPLE WHO LOVE LOYALTY PROGRAMS

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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 PosnerCEODirectivity

Pete NobleCEOCitrus

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Directivity t. 0433 818190e. [email protected] 7, 390 St Kilda RoadMelbourne Victoria Australia 3004www.directivity.com.au

Citrust. +613 9681 5333e. [email protected] 8, 100 Albert RoadSouth MelbourneVictoria Australia 3205www.citrus.com.au

2013 Australian Loyalty Programs

Business

Transcript of 2013 Australian Loyalty Programs