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!

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

Latest Videos

More Videos

looking for the best quality of SMM Panel ( Social Media Marketing Panel ) is a website where People Buy Social Media Services Such as Fa...

Kavin kyzal

How to manage social media during Covid-19

Read more

Thank you for sharing your knowledge. Definitely bookmarked for future reading! Check this website https://a2designlab.com/ with lots of ...

Pierce Fabreverg

Study: Gen Z are huge opportunity for brands

Read more

Thanks for sharing. You might want to check this website https://lagimcardgame.com/. An up and coming strategic card game wherein the cha...

Pierce Fabreverg

Board games distributor partners with Deliveroo in business strategy pivot

Read more

Such an important campaign, dyslexia certainly need more awareness. Amazing to see the work Code Read is doing. On the same note we are a...

Hugo

New campaign aims to build understanding around scope and impact of dyslexia

Read more

Great Job on this article! It demonstrates how much creativity, strategy and effort actually goes to produce such unique logo and brandin...

Pierce Fabreverg

Does your brand need a personality review? - Brand vision - CMO Australia

Read more

Blog Posts

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Predicting the Future: Marketing science or marketing myth?

Unicorns, the Sunken City of Atlantis, Zeus: They are very famous. So famous in fact, that we often think twice about whether they are real or not. Sometimes if we talk about something widely enough, and for long enough, even the strangest fiction can seem like fact. But ultimately it is still fiction - stories we make up and tell ourselves over and over until we believe.

Kathy Benson

Chief client officer, Ipsos

Winning means losing in the game of customer retention

At a time of uncertainty and economic hardship, customer retention takes on much greater importance. CX Lavender’s Linda O’Grady examines the big grey area between ‘all’ and ‘best’ customers when deciding who is worth fighting for and how.

Linda O'Grady

Data Strategy Partner & Business Partner, CX Lavender

Sign in