Report: Australians still love a customer loyalty program

New Roy Morgan research finds supermarkets lead the pack when it comes to adoption and utilisation of loyalty program schemes

Nearly three-quarters of Australians are members of at least one store customer loyalty program, with Woolworths Rewards the clear leader in terms of utilisation, new figures suggest.

New Roy Morgan research into the state of Australia’s loyalty programs found 49 per cent of Australians are members of the Woolworths Rewards (formerly Everyday rewards) program, followed by the Coles Flybuys program (45 per cent). It also showed 21 per cent belong to Myer’s MyerOne customer loyalty program, and 18 per cent to Priceline’s Sister Club.

On the fashion front, customer loyalty programs from womenswear chain, Millers, was a notable loyalty winner with 13 per cent coverage across respondents, while Dan Murphy’s had 11 per cent. In total, 71 per cent of those surveyed belonged to at least one loyalty program.

In terms of utilisation, Woolworths Rewards proved the most effective, with 78.2 per cent of shoppers saying they shop at a Woolworths/Safeway supermarket in any given four weeks, and 61.8 per cent also shop at the Woolworths owned liquor chain, BWS.

This is despite Woolworths suffering consumer backlash for changes made to its loyalty program 12 months ago, which saw it drop the Everyday Rewards moniker and points-based scheme in favour of Woolworths Rewards and earning shopper dollars.

In August, Woolworths did a backflip, reinstating the points-based scheme on every dollar spent.

Flybuys cards are also being used regularly, with 69.2 per cent of respondents shopping at Coles supermarkets over a four-week period. Just over six in 10 also shop at partner liquor chain, Liquorland, and members are frequently shopping at Kmart (54.4 per cent), Target (54.3 per cent) and 1st Choice (53.6 per cent).

At least half of MyerOne and Priceline customers are also members of the loyalty programs.

“A large membership is obviously important for a store’s customer loyalty program, but if members are inactive and don’t actually shop at the store/s in question then it can’t really be considered successful,” Roy Morgan Research industry communications director, Norman Morris, commented. “Woolworths Rewards is a high-profile example of an extremely popular loyalty program whose members do form the majority of customers at Woolworths and BWS.

“Much more niche in size is Miller’s, but with almost three-quarters of its customers in any given four-week period belonging to its loyalty program, it can certainly be considered a success.”

And while it is clear retailers can benefit from the consumer intelligence provided by a large loyalty program, Norris urged them to focus on giving consumers good reasons to join and participate.

“It’s worth remembering that customer loyalty programs are about more than big data: They must also give their customers reason to be loyal,” he said. “Calling your program a rewards program but making it hard for customers to redeem their rewards is the first step to failure.”

The results were based on a survey of more than 7000 Australians over 14 years of age between January and June 2016.

Recent customer loyalty program innovations in the Australian market include Virgin's decision to allow customers to us Velocity frequent flyer points as currency at BP petrol stations nationally.


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

How to leverage the Internet of Things to understand consumer intent

'Intent' is the single largest performance marketing variable. It shapes our search queries, dictates our purchase paths and mediates meaningful interactions with brands regardless of channel, media or content type.

Oliver Smith

Business development, Performics Australia

3 ways customer data can increase online sales conversion

Data has been an increasingly critical factor in improving the efficiency and effectiveness of marketing and business operations.

James Bennett

Chief experience officer, Kalido

Our sharing future is both terrifying and exciting

Discussing the future in a realistic fashion is often a disappointing prospect. For all the talk of hoverboards, jetpacks and lightsabers changing the way we do things, the reality tends to end up being something as mundane as a slightly cheaper way to get around the city.

Jason Dooris

CEO and founder, Atomic 212

Hi James, shouldn't marketers also be focusing on collecting and utilizing up to date first-party profiling data on customers so that mes...

Tom

3 ways customer data can increase online sales conversion

Read more

Wouldn't reconnecting with younger consumers be in direct contravention of the code on alcohol advertising?

Tim Palmer

Vodka Cruiser reconnects with younger consumers via category-first Facebook Live campaign

Read more

Thanks for the article Jennifer, you raise some interesting points. The supermarket and shopping centre examples particularly struck a c...

Jill Brennan

Why marketers should take note of social robots

Read more

Winning the retail game is really tricky at this point in time. Many retailers have declared themselves as bankrupt. But yes harnessing t...

Vanessa.M.Magers

​Bricks and clicks: Balancing digital and physical to win the retail game

Read more

Excellent article, Thank you.

Steve Beards

How Aprimo hopes to help marketers tackle distribution of content, funds and data

Read more

Latest Podcast

More podcasts

Sign in