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!

Error: Please check your email address.
Show Comments

Blog Posts

The competitive advantage Australian retailers have over Amazon

With all of the hype around Amazon, many online retailers have been trying to understand how they can compete with the American retail giant.

Joel Milligan

Performance manager, Columbus Agency

How to become the customer experience custodian

The number one objective enterprises give for embarking on a digital transformation is to improve customer experiences with new engagement models, according to IDC’s 2017 global study.

Fear not: It's only a robot

Every time I pass through the automated border controls at the Sydney airport I walk away with a feeling of exasperation on the one hand and relief on the other. Exasperation, because the face recognition technology inevitably always fails to recognise me. Relief, because we seem to be safely years away from the Orwellian reality of states controlling every aspect of our lives; something the media is keenly warning us against each day.

Dan Kalinski

CEO, iProspect Australia and New Zealand

And to add after looking at event pictures plus, observing all AU's visible Blonde Bimbos (think Julie Bishop to this Georgie Gardnerare)...

absolutelyconcerned

In pictures: CMO 50 2017: The who's who of Australian marketing leadership

Read more

CMO 50 2017 announcement mentioning "innovation". I checked date and its November not April so its wasn't an April Fools' Joke. Australia...

absolutelyconcerned

In pictures: CMO 50 2017: The who's who of Australian marketing leadership

Read more

I worked at Momentum when the transformation started way back in 2013 (not 2015 as stated in the article). It was a painfully slow and co...

Jay

How Momentum Energy has transformed its entire business to be customer-led

Read more

Another buzzword thoughtlessly latched onto, without any thought for the implications on the organisations that have to lumber through th...

Tired

Rolling out agile marketing at Deakin

Read more

Useful., also don’t miss out on these 5 features of Adobe Experience Cloud - Visit here > http://www.softcrylic.com/b...

Sunil Joseph

Adobe debuts Advertising Cloud, Experience Cloud

Read more

Latest Podcast

More podcasts

Sign in