Report: What loyalty really means to your customers

New study sets out to understand what loyalty is from the customer’s point of view

Customer loyalty remains a hot topic for marketers with the ever-evolving tech, data, social and demographic changes, but what does it all really mean for customers?

According to a new study, For love or money 2017 report, customers see loyalty as embodying both behaviour and belief, as well as inherent trust of a brand’s offering.

The report, released by The Point of Loyalty, surveyed a panel of Australian consumers over 18 who were members of at least one loyalty program. It found 81 per cent of respondents tended to purchased more from the companies with which they are loyalty members, and 64 per cent fully endorsed the need for loyalty programs, a significant increase from last year’s survey. Looking at the top performers, Coles flybuys remained the number one program members consider as ‘doing a very good job’, followed by Woolworths Rewards and Qantas Frequent Flyer. Priceline’s Sister Card moved up from its sixth ranking in 2016 to fourth this year, while Myer’s one program dropped from fifth to sixth. Boost Vibe Club, CommBank Awards, MyDanMurphy’s and Optus Perks took the remaining spots in the top ten.

Customers saw convenience, transactional benefits and the emotional benefits as the top reasons they joined loyalty programs, and enjoy being personally recognised as a member and offered tailored and relevant rewards. 

And while millennials, gen Xers and baby boomers were almost equally represented across program memberships, it was households with no kids and a medium income that actually actively participated. Meanwhile a record 87 per cent of Australians enrolled in at least one loyalty program, with millennials having the highest sign up rate this year. 

But complacency kills loyalty, with the report revealing loyalty program managers still need to keep an eye on member defection, which currently sits at 18 per cent.

Leveraging the right technology to boost loyalty transactional ease of use was also identified as a priority, with 80 per cent of respondents indicating they used a card to interact at POS, but would be open to other payment integration methods like a mobile app or using a unique identifier such as a mobile phone number or email address.

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

3 marketing mistakes to overcome when courting prospective customers

Marketing that urges respondents to ‘buy now’ is a little like asking someone to marry you on your first date. At any time, only 3 per cent of the market is looking for what you’re selling, so the chances of your date randomly being ‘The One’ is pretty slim.

Sabri Suby

Founder, King Kong

Why are we dubious about deep learning?

The prospect of deep learning gives those of us in the industry something to get really excited about, and something to be nervous about, at the same time.

Katja Forbes

Founder and chief, sfyte

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Red Agency YouGov Galaxy Report, February 2019 Predictors Study. https://redagency.com.au/re...

Vanessa Skye Mitchell

DNA-based marketing: The next big thing?

Read more

RIP holden

Max Polding

Marketing professor: For Holden, brand nostalgia ain’t what it used to be

Read more

Where does the claim that 2 million Australians have tested come from ? Anecdotal information suggests that this is way off the mark.

David Andersen

DNA-based marketing: The next big thing?

Read more

Thank you for the info , being part of a digital marketing agency in kerala , this proved handy and get to know with upcoming trends. htt...

Dotz Web Technologies

Predictions: 9 digital marketing trends for 2019

Read more

So who then is correct? The Research or The skilled Digital people.

Anene

Report reveals Australia faces digital skills shortage

Read more

Latest Podcast

More podcasts

Sign in