How ANZ is rethinking customer loyalty programs

ANZ head or rewards and loyalty, Mark Kelly, reveals what it takes to make a successful loyalty program

View all images

The rise of ecommerce and the surge in consumer choice means organisations need to think of more innovative solutions to keep customers loyal.

ANZ head of rewards and loyalty, Mark Kelly warns against complacency when it comes to loyalty programs
ANZ head of rewards and loyalty, Mark Kelly warns against complacency when it comes to loyalty programs

Traditionally, loyalty programs used to be simple. At first, they were about maximising spend by locking customers into programs whose perks made switching to a competitor unthinkable.

Then organisations realised the data these programs generated had its own inherent value, and could be used as a market research tool to create and launch new services.

But with the proliferation of ecommerce has massively increased the choice of goods and service providers available today, barriers for customers switching to a competitor have never been lower. This means building and maintaining loyalty has become more challenging, even for organisations with ongoing long-term customer relationships.

Mark Kelly has spent much of his career understanding and implementing programs to enhance customer loyalty, at organisations such as WLA in New York, Global Red and Woolworths in Sydney, and since 2014 at ANZ Bank in Melbourne.

As the head of rewards and loyalty, Kelly is tasked with enhancing and developing an already sophisticated credit-card based loyalty program, while rethinking exactly what loyalty means to the bank.

Why complacency is the receipe for loyalty disaster

Speaking ahead of his appearance at the CustomerTECH X conference in Melbourne this week, Kelly described how the success of loyalty programs had actually led to complacency at some organisations.

Read more: How Caesars Entertainment uses digital to boost the fun factor for customers

“There was a model minted for loyalty programs some time ago, and there really hasn’t been much change,” Kelly says. “So we’ve gone along with what we know, and there has been not much of an evolution in the thinking about what a loyalty program can mean to someone.”

As a result, Kelly says many organisations have done a poor job communicating with customers to ensure they understand the benefits their program includes, or to find out what customers actually want.

“At ANZ we’ve got a community that we go to often to test ideas and to get feedback,” Kelly said. “And that has really helped us with changing the mindset of how we might deliver loyalty and what loyalty means.”

Taking the more federated approach

Since joining ANZ, Kelly says he has placed emphasis on creating a more federated approach to data management, working in conjunction with the bank’s information and technology teams to create a platform for more effective data-driven communications.

Moving forward, Kelly is now looking to see how the bank might partner with other organisations to enhance its programs.

“Instead of trying to go it alone, our partnership strategy is where we would like to put most of our focus,” Kelly explained. “So how can we stand next to other brands and make a collective proposition across brands.

“We have to think about your relationships with your merchants, and should those relationships also come into the mix? So how can we leverage those relationships to mutual benefit, and help us with our rewards proposition to add value beyond just the points.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu


Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

3 skills you need to drive better collaboration

A study published in The Harvard Business Review found the time spent in collaborative activities at work has increased by over 50 per cent in the past two decades. Larger projects; complicated problems; tighter timeframes: These require bigger teams with specialised skillsets and diverse backgrounds, often dispersed globally.

Jen Jackson

CEO, Everyday Massive

Better the bank you know?

In 2018, only 21 per cent of customers believed that banks in general had their customers best interests at heart and behave ethically. Only 26 per cent believed that banks will keep their promises; views cemented further following the Hayne Financial Services Royal Commission.

Carolyn Pitt

Head of account management, Hulsbosch

What 15 years of emotional intelligence told us about youth media audiences

Taking people on an emotional journey through content is the most critical part of being a publisher. Which is why emotion lies at the heart of VICE Media.

Stephanie Winkler

Head of insights, VICE Asia-Pacific

I have recently worked on Big Data while studying on my certificate exam SAA-C01 Braindumps provides authentic IT Certification exams pre...

samried

The CIO and CMO Perspective on Big Data

Read more

Thanks for sharing the insights. The findings are spot on according to several encounters we had with various brands in the luxury retail...

Xen Chia

Report: Only 11 per cent of brands use customer data effectively

Read more

I think they are overpriced. Don't you think so? I won't buy them.

Donna Green

Apple Watch arrives April 24, some models top $10K

Read more

Energy Makeovers provides services to building owners to reduce their energy consumption and emissions, including replacing halogen light...

samried

How one energy company is giving itself a social media makeover

Read more

That's an interesting use for biometrics, to actually assist in predictive analysis of campaign success.

Simon Smith

Facial recognition technology being used in a new out-of-home campaign

Read more

Latest Podcast

More podcasts

Sign in