Report: Consumers favour retailers offering customer loyalty programs

New Nielsen research finds consumers are more likely to return to a retailer if they have a program in place

More than half of Australian consumers will spend more with a retailer who offers a loyalty program over one who doesn’t, new research from Nielsen has found.

According to the latest Global Loyalty Sentiment Survey, 57 per cent of Australians are more likely to return to a retailer if they have a loyalty program in place, and 48 per cent will spend more if they know they’re going to be rewarded.

Across the global pool of respondents, 72 per cent also said they’d buy from a retailer with a loyalty program over one without.

Monetary incentives top the list of offers most desired by global consumers, such as product discounts (51 per cent), rebates or cashback offers (45 per cent), followed by free products (33 per cent). Frequent flyer points then ranked as the highest non-monetary benefit.

Across the split of millennials versus boomers, product discounts were more valuable to older consumers, while discounted shipping got a higher favourable response from millennials (17 per cent versus 9 per cent).

In addition, 67 per cent of Australian consumers participating in a loyalty program said it’s appealing to be able to earn rewards regardless of whether a purchase was made in-store, on a website or on a mobile device. This compared to about 80 per cent of global respondents.

“Flexibility is very important to Australian shoppers, now having access to an omnichannel experience when it comes to shopping,” commented Nielsen director of retailer services, Megan Treston. “This means they have access to bricks and mortar stores, online shopping, telephone sales and more.”

Treston said tailoring loyalty benefits for specific consumers, and using loyalty program elements to do this, such as an app, email or in-store integration, will also help retailers personalise rather than simply discount.

The Nielsen survey was based on more than 30,000 respondents across 63 countries including Australia.

Australia, along with Vietnam and New Zealand, were found to have the highest proportion of loyalty program participants across Asia-Pacific (84 per cent, 84 per cent and 83 per cent, respectively).

As it currently stands, presenting a membership card to be scanned remains the most common method of loyalty programs in Australia (81 per cent), against a global average of 45 per cent.Much higher across Asia-Pacific was looking up an account via a phone number, email address or other personally identifiable information in-store.

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

Building a human-curated brand

If the FANG (Facebook, Amazon, Netflix, Google) sector and their measured worth are the final argument for the successful 21st Century model, then they are beyond reproach. Fine-tuning masses of algorithms to reduce human touchpoints and deliver wild returns to investors—all with workforces infinitesimally small compared to the giants of the 20th Century—has been proven out.

Will Smith

Co-founder and head of new markets, The Plum Guide

Sustainability trends brands can expect in 2020

​Marketers have made strides this year in sustainability with the number of brands rallying behind the Not Business As Usual alliance for action against climate change being a sign of the times. While sustainability efforts have gained momentum this year, 2020 is shaping up to be the year brands are really held accountable for their work in this area.

Ben King

CSR manager & sustainability expert, Finder

The trouble with Scotty from Marketing

As a Marketer, the ‘Scotty from Marketing’ meme troubles me.

Natalie Robinson

Director of marketing and communications, Melbourne Polytechnic

If you think it can benefit both consumer and seller then it would be great

Simon Bird

Why Ford is counting on the Internet of Things to drive customer engagement

Read more

It's a good idea. Customers really should control their data. Now I understand why it's important.

Elvin Huntsberry

Salesforce CMO: Modern marketers have an obligation to give customers control of their data

Read more

Instagram changes algorithms every time you get used to them. It really pisses me off. What else pisses me off? The fact that Instagram d...

Nickwood

Instagram loses the like in Australia; industry reacts positively

Read more

I tried www.analisa.io to see my Instagram Insight

Dina Rahmawati

7 marketing technology predictions for 2016

Read more

The saying is pretty tongue in cheek. It's not saying that marketers are bad people, nor that they don't take themselves seriously. There...

LYF Solutions

The trouble with Scotty from Marketing - The CMO view - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in