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

Does your brand need a personality review?

There are five tell-tale signs your brand needs to take a long hard look at itself.

Charlie Rose

Senior Strategy Consultant, Principals

How to create profitable pricing

How do we price goods and services? As business leaders, we have asked ourselves this question since the history of trading.

Lee Naylor

Managing partner, The Leading Edge

Sport and sponsorship: The value of event sponsorship

Australia’s cricketers captured the nation’s attention during their recent run to the semi-final of the ICC Men’s World Cup. While the tournament ultimately ended in defeat, for over a month it provoked a sense of belonging, hope and empowerment for millions of people across Australia. Cricket, and sport in general, has a near-unique ability to empower individuals, irrelevant of their background, demographic or nationality.

Nikhil Arora

Vice-president and managing director, GoDaddy India

I should check these guidelines. I think it's important for me. Thanks for the info!

Juana Morales

IAB releases social media comment moderation guidelines

Read more

I didn't know about that. Thanks!

Jamison Herrmann

Twitter 'recap' helps you catch up with missed tweets

Read more

😂😂😂😂😂😂😂😂

Max Polding

What it takes to turnaround an iconic Australian brand

Read more

I spend a lot of time in my professional life as a provider of marketing solutions trying to persuade customers that CX, UX, UI and Custo...

sketharaman

Gartner VP: Why CMOs and CIOs must band together to make CX a discipline

Read more

I live the best deals at LA Police Gear.

Tyrus Rechs

6 Ways to ramp up Social Media to Your Web Design

Read more

Latest Podcast

More podcasts

Sign in