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The Top Ten Loyalty Programs Australians Recommend

In a previous blog, we investigated how loyal customers are and if loyalty programs really work and are valued by customers.  And more importantly, do they add to the bottom line?

 In a recent edition of Ad News, Frank Chung looks at what demographic is leaving loyalty programs and why.  He states that, “Over one quarter of Australian consumers say they have left a loyalty program in the past 12 months, with that number jumping to 40% for 25 to 34 year olds.

 Chung sited a report called Share the Love that recognised the common reason for defection was the ‘earn and burn’ rate of programs – when the consumer isn’t earning points or rewards fast enough. The study’s other theme reveals a crucial and largely untapped area for brands: shareabillity.  Sixty-five percent of members said they wanted the ability to share benefits with family, friends and/or a charity – and even the ability to leave unused points to charity or someone else when they die.

The study pointed out that if there was more shareability, “70% said they would shop more often and 45% said they would spend more and had more emotional benefits.”

 Another interesting finding in the study was the reluctance of consumers to embrace loyalty apps over physical cards with 57% saying they preferred a traditional loyalty cards over an app.  The reason being was that, “a bit too personal to hand over the counter.” But the forecast with new NFC technologies would help acceptance of apps over cards.

 The study found Coles FlyBuys was the loyalty program most likely to be recommended to others, followed by Woolworths Everyday Rewards.  The study was conducted by First Point Research and Consulting in Q4 2013 via a national online panel of more than 1,000 consumers who were members of at least one program.

 The top ten loyalty programs that people recommend according to Citrus/Directivity are:

 What is your loyalty program delivering to your customers, and will you need to segment your programs by age demographics?  Some food for thought.



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