for love or_money_loyalty_research_2015

Consumer research study taking the pulse on Australian

loyalty programs and their impact on customer loyalty

2 © COPYRIGHT TO DIRECTIVITY AND CITRUS

Welcome to ‘for love or money 2015’; the Australian research report that takes the pulse on trends, changes and provides new insights into consumers’ relationships with loyalty programs and their impact on customer loyalty.

3© COPYRIGHT TO DIRECTIVITY AND CITRUS

Contents

1.0 Introduction - welcome to ‘for love or money 2015’ 4

2.0 Research methodology and profi le of participants 8

3.0 Executive summary of key fi ndings trends and new insights 10

4.0 Findings in detail 18

4.1 Tracking the pulse of change to benchmark results from 2013 and 2014 18

4.2 Revealing 9 new insights that impact on brand loyalty and loyalty program success 46

4.3 28 Australian loyalty programs reviewed 62

5.0 Behind the research - the people who love loyalty 68

Copyright © 2015 to Directivity and Citrus

‘for love or money 2015’ Consumer Study into Australian loyalty programs and customer loyalty is for single use only. No part of this publication may be reproduced, stored in a retrieval

system, or transmitted, in any form or by any means, electronic or mechanical including photocopy or printing without the prior permission in writing from the copyright owners, nor be

otherwise circulated in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed on the subsequent

publisher. No responsibility for loss occasioned to any person acting or refraining from the action as a result of the material in this publication can be accepted by the authors.

1.0

Welcome to ‘for love or money 2015’

Introduction

S

S


Directivity and Citrus together with First Point Research and Consulting are

pleased to release our in-depth research report into consumers’ relationships with

loyalty programs and customer loyalty in Australia.

This is our third research report to follow previous research reports available at

www.theloyaltypoint.com.au

What’s diff erent in this report that will make a diff erence to your brand or business?Three goals were set for this 2015 research study:

1. To track the pulse of change to benchmark results

The 2015 research study is the fi rst of its kind to benchmark results from

the 2013 ‘For love or money’ research study and some of the insights from

the 2014 ‘Share the Love’ study.

It identifi es the pulse of change in results and insights that impact on loyalty

programs and customer loyalty including:

• Volume of memberships

• How active members are (huge change)

• Benefi ts members want

• Card vs mobile app

And more ...

2. To reveal new insights that impact on brand loyalty and loyalty program success

It highlights 3 new areas and 9 new insights that impact on the lifeblood of

loyalty program success and the infl uence on members’ buying behaviour and

brand loyalty. It reveals answers to questions such as:-

• Do members think brands need a loyalty program to keep their customers

loyal? (the results are fascinating for certain age groups)

• Do members purchase items that they do not need because of a loyalty

program? (the hidden profi t driver of programs)

• Do members want benefi ts for interacting with the brand through the program

such as for answering surveys, opening emails and others? (moving from

transaction to interaction)

And more!

3. To review 28 Australian loyalty programs

For the fi rst time in our research studies, we provided members with a list of 28

randomly selected Australian loyalty programs to give members the opportunity

to identify:

• Which programs they were a member of;

• How active they are in these programs; and

• Their view on whether it is a poor or excellent program.

The results are surprising!

1

For love or MONEY?2013 Consumer Study into Australian Loyalty Programs

1© Copyright to Directivity and Citrus

2014 Consumer Study into Australian Loyalty Programs

Sharethe love

Thank you for your interest in ‘for love or money 2015’


Australian loyalty programs reviewed

MYER oneAmcal RewardsMillers FashionSpotlight VIP

myDanMurphy’sANZ Rewards

Big4 Loyalty ClubKaties Fashion Club

Vintage Cellars WineclubAccor Hotels – Le Club

Coles – fl ybuysRays Outdoors

Virgin – VelocityKathmandu Summit Club

Hoyts RewardsCommonwealth Bank awards program

The Coff ee Club VIPBoost VIP

Thirsty Camel – Hump ClubStarwood Preferred Guest

Supercheap AutoPriceline – Sisterclub

Country Road – VIP cardholderVillage Movie Club

Woolworths – Everyday RewardsQantas Frequent Flyer

RebelWestpac Altitude Rewards

Note. The authors of this research study have no vested interest in any of the listed

loyalty programs. They were chosen randomly from the Australian loyalty program

market place.

The 28 loyalty programs were also randomly presented in the research to avoid bias

of selection.

As you continue to enhance and build loyalty program success or are seeking to improve your customer interactions and overall brand loyalty, then ‘for love or money 2015’ will give you the results, observations and insights to guide you along that journey.

Adam PosnerCEO

Peter NobleCEO

2.0Research methodology and profi le of participantsWho gave their point of view?


Research methodology and profi le of participants The research was conducted independently by First Point Research and Consulting in the fi rst quarter of 2015, through an online panel of Australian consumers (men and women aged 18 years +) who are all members of at least one loyalty program. The research was structured to gain quantitative results with comparative analysis. Free form questions were included to gain actual feedback and comments from loyalty members.The total sample of N=1367, provides a margin of error of +/- 3% at a 95% level of confi dence. Broad quotas were set for age & gender.

2013

52%

48%

part of NSW

18%

35%

25%

3%

9%10%

part of NSW

17%

30%

25%

3%

8%16%

2015

60%

40%

16-24 25-34 35-44 45-54 55-64 65+

9% 29% 21% 16% 17% 8%

YEARS

18-24 25-34 35-44 45-54 55-64 65+

6% 18% 18% 19% 20% 19%

YEARS

Gender

State

Age

A note on this tracking study A consumer tracking study is generally designed to ‘track’ any shifts in

consumer sentiment or behaviour over time. They are sometimes conducted ‘continuously (i.e. daily or weekly),

or may be ‘ad-hoc’ or periodic measures, as is the case with this series of Loyalty studies. Tracking studies

are generally conducted with large sample sizes so that the data is reliable and robust and conclusions can be

drawn confi dently about any statistically signifi cant shifts in response to questions from one point to another.

The sample size is an important indicator of the confi dence we can have in the data. With a sample of around

1,000 Australians in our studies, we expect the results to deliver the same result (within +/- 3% of the observed

result) on 95% of occasions. The implication of a sample with a 95% confi dence interval is that the results,

assuming identical questions, WILL and SHOULD be very similar from one period to another. This is an indicator

of high data integrity. Any signifi cant shift in results can be attributed to a genuine shift in consumer sentiment

or behaviour that is likely to be refl ection of one of many factors including (but not limited to): A change in the

economy (eg. Higher interest rates or rise in unemployment rates); A change in competitive conditions (eg. new

arrivals in the market place); A change in marketing or advertising activity (a new product, innovation or campaign

highlighting new features or USP).

of key fi ndings, trends, results and new insights

Executive summary

3.0

S

S


A summary of trends, results and insights from 2015 …

?


Immediate price discounts when making purchases

Point based programs that allow members to redeem ‘points’ for vouchers, products or other rewards

78%

77%77%

% Very Important/Important

% Very Important/Important

2015 2013

1. Tracking changes in the Australian loyalty landscape

Membership of loyalty programs

• In 2015, 84% of Australian’s are enrolled in at least one loyalty

program (2013=88%)

• Average no. of memberships in 2015=3.8 (4.0 in 2013)

• 59% of members indicate they are active in ALL of the programs

they are enrolled in, an incremental increase of 31% since 2013.

Men are more active than ever before.

(active = member presented their card or membership number when making purchases or accruing benefi ts in

the last 12 months)

Behaviours & attitudes

• Programs continue to be valuable to business, with 82% of

members indicating they tend to buy more from companies

whose programs they are a member of (80% in 2013).

• Programs are still a competitive advantage with 55% of

members indicating they tend to buy from companies with

a program.

• Over a quarter (26%) of members believe that loyalty

programs just don’t seem to understand how to

communicate appropriately.

80%

• Tears for tiers – tiered programs are the least preferred benefi t by members 36% (same as 2013)

Different levels of reward based on different levels of spending (eg Gold, Silver and Bronze membership tiers)

36%36%

Program benefi ts

• Money still matters and points for purchase still pleases

?


Who’s doing a good job?97 loyalty programs were mentioned unprompted by members as doing a very good job (see the list on page 39) and whilst the top 3 remain the same, there has been some movement in the ranks, with two new entries.

Q Can you tell us about a specifi c loyalty program that you think is doing a very good job?

The 2013 top 10 most mentioned loyalty programs (unprompted) as doing a particularly good job

Coles/fl ybuys

Woolworths – everyday rewards

Qantas Frequent Flyer

MYER one

Priceline – Sisterclub

Virgin – Velocity

CBA Credit Card

IGA

Millers

Rewards Central

Spotlight

Other Programs

None

37%22%

11%6%

5%2%

1%1%1%1%1%<1%

12%


The 2015 top 10 most mentioned programs (unprompted) as doing a very good job

Coles/fl ybuys



Virgin – Velocity

MYER one


Millers

Westpac Altitude Rewards

Commbank Awards

Hoyts Rewards

Other Programs

None

13%6%

3%2%2%

1%1%

1%1%

13%

25%

33%


Member defection Member defection remains passive, with 22% stopping to

participate in a loyalty program (slight improvement for 2013

which was 26%).

There are many reasons for defection, these are two

critical reasons: Remember: Defection from a program = defection from a brand

I wasn’t earning points / rewards fast enough

The rewards didn’t appeal to me

51%59%

36%40%

20142015 % Very Important/Important

OMG! … the card wins again – you’re kidding!

Members want the card – and this preference has had a remarkable increase.Getting the card into the wallet/purse is a critical piece of brand

real-estate and connection!

Card vs App

…Would like a traditional card …Would like a mobile phone app

2015 20152014 2014

12%10%

There has been a slight decrease in interest in using a MOBILE

APP to interact with a program.

57%67%


2. Revealing new insights for loyalty program success

Impact on brand loyalty

Infl uence over buying behaviour

Evolving program benefi ts58% of loyalty program members believe that brands need a loyalty program to keep their

customers loyal.

This jumps to 71% for under 34 yo.

Members are wise to why brands have loyalty programs.

Their top 3 reasons why brands have a program are:

Loyalty programs do infl uence impulse purchases and buying behaviour with 16% of members having

purchased items they did not need in order to earn or maintain program benefi ts (this jumps to 26% for

men < 45 yo).

Move your program from transaction to interaction!More than half of members (53%) want rewards for

answering surveys.

This is closely followed by opening emails (46%) & this jumps to

61% for under 35’s.

Cash in the points81% of members want cash based rewards.

Members can wait for high value rewards68% of members prefer higher value rewards that take a longer

time to accumulate vs immediate lower value rewards.

To keep you buying from them rather than the competitors

To encourage you to buy from them more often

To encourage you to spend more with them

69%

67%

63%

ALL reasons

?


3. Ranking of 28 Australian loyalty programs

% rating as ‘Excellent’

Base: Respondents are ACTIVE members of the respective programs

ANZ Rewards


Coles fl ybuys

The Coffee Club VIP

Hoyts Rewards

Comm Bank Awards

Supercheap Auto

Vintage Cellars Wine Club

Country Road VIP

Millers Fashion

Woolworths Everyday Rewards


Amcal Rewards

MYER one

Rays Outdoors

Boost VIP

Virgin Velocity

Priceline Sisterclub

Spotlight VIP

myDanMurphy’s

Katies Fashion Club

Kathmandu Summit Club

Accor hotels – Le Club

Rebel Sport

Village Movie Club

51%50%

46%46%

45%44%

43%40%

37%36%

34%34%34%

33%33%

32%31%

29%26%26%

23%23%

21%17%

16%

Banks are getting it right! The loyalty programs of two major banks are

given strong endorsement by members

Flybuys rated much higher than Everyday Rewards.

Country Road leads the fi eld in the fashion stakes

Hoyts Rewards rated much higher than Village Movie Club

Q. Looking still at the programs you are an active member of, indicate the impression you have of that program based on your own experiences. Scale from 1 (poor) to 7 (excellent)

Members impression on overall quality... from poor to excellent

For the fi rst time in our research studies, we provided members

with a list of 28 randomly selected Australian loyalty programs to

give members the opportunity to identify:

• which they were a member of

• how active they are in these and

• their view on whether it is a poor or excellent program.

Top 25

17© COPYRIGHT TO DIRECTIVITY AND CITRUS 17© COPYRIGHT TO DIRECTIVITY AND CITRUS

4.1 Tracking the pulse of change to benchmark results from 2013 and 2014 studies

Findings in detail4.0

1

For love or MONEY?2013 Consumer Study into Australian Loyalty Programs

1© Copyright to Directivity and Citrus

2014 Consumer Study into Australian Loyalty Programs

Sharethe love


Tracking the pulse of change to benchmark results from 2013 & 2014

?


Membership of a loyalty programIn 2015, 84% of Australians over 18 yo are enrolled in at least ONE loyalty program.

2015 2013

Average number of program memberships

On average, in 2015 Australians recall being enrolled in almost FOUR diff erent programs, with no signifi cant change since 2013.

2013: 88% of Australian consumers over the age of 16 were members of a loyalty program

2015


3.88

© COPYRIGHT TO DIRECTIVITY AND CITRUS 21

The lovers of loyalty programs are becoming more selective

Interestingly the 2015 study identifi ed that 8% of members belong

to 10 or more programs, which is down from 11% in 2013.

This indicates that members who love loyalty programs are

becoming more discerning about the programs they will sign up to.

8% of members

belong to 10 or more programs belong to 10 or more programs

10+men women

10+

9%3%



WOMEN2013

4.7

With only a slight decrease in memberships for both men and women, it is still clear that women have more memberships, however MEN are more actively engaged with their programs than women (see page 23)

Male vs female

2015 vs 2013 - Gender

WOMEN2015

4.4

MEN2013

3.3

MEN2015

3



Youth are moving up

Younger members (less than 45 years) are starting to trend up in

the number of programs they belong to.

2015 vs 2013 - AGE 2015 - Gender and Age

WOMEN under 45yrs

WOMEN over 45yrs

3.95

MEN under 45yrs

MEN over 45yrs

3.5 2.8

20132015

Under 24yrs 25-34yrs 35-44yrs 45-54yrs 55-64yrs 65+yrs

4.1 4 4.5 4.3 4.4 4.2 3.4 3.8 3.3 3.8 3.6 3.7

More programs for women < 45 yo

Women generally, but specifi cally women aged under 45 years tend

to enrol in more loyalty programs.



Active engagement in ALL programs increases!

Members are far more engaged with their programs in 2015.Overall there has been a signifi cant improvement since 2013 in the

ability of Australian loyalty programs to maintain member activity

and engagement.

59% of members indicated they are active in ALL of the loyalty programs they are enrolled in – an incremental increase of 31% since 2013!

Q Still thinking about those loyalty programs that you are a member of, approximately how many of them are you an active member of (i.e. you present the card or membership number when making purchases or accrue benefi ts through the program) in the last 12 months.

2015 vs 2013

Base: Total sample n= 1367

All of them Most of them About half of them

Not many of them

None of them

45%59% 30%24% 15%11% 9%5% 1%1%

20132015



2015 vs 2013 = A massive jump in activity in programs for men and women.

31% incremental1 increase in activity by men in all

of their programs since 2013 37% incremental increase in activity by women in all of their programs since 2013


2013

Members of a loyalty program n= 884

WOMEN 2013

41%

MEN 2013

49%

2015

WOMEN 2015

56%

MEN 2015

64%


(from 49% in 2013 to 64% in 2015)

(from 41% in 2013 to 56% in 2015)

1. Incremental increase is the difference between 2015 and 2013 as a percentage of the base of 2013. Example: MEN 2013 = 49% and

2015 = 64%. Difference is 15%, however incremental increase is 15% / 49% = 31%


Men vs women: As was the pattern in 2013, men tend to be more active and committed to their loyalty programs than womenMen, men, men = love loyalty programs!With fewer memberships than women (4.4), men (3.0) are far more

engaged in all of their programs, than women.

Level of activity (2015)

Q Still thinking about those loyalty programs that you are a member of, approximately how many of them are you an active member (i.e. you present the card or membership number when making purchases or accrue benefi ts through the program) in the last 12 months.

2015 - Base: Total sample n= 1367

WomenMen

Active in all of them

Active in most Active in about half

Not active in many

Not active at all

64% 56% 18% 27% 11% 11% 6% 5% 1% 1%




Mature age women and men (over 45 years) are typically more active than younger people. Older men are most active

59%

67%

60%

51% WOMEN over 45yrs

WOMEN under 45yrs

MEN under 45yrs

MEN over 45yrs

Q Still thinking about those loyalty programs that you are a member of, approximately how many of them are you an active member (i.e. you present the card or membership number when making purchases or accrue benefi ts through the program) in the last 12 months.

Total Female Under 45 years

Female 45 years+

Male Under 45 years

Male 45 years+

Active in all of them 59% 51% 60% 59% 67%

Active in most 24% 31% 23% 22% 16%

Active in about half 11% 13% 10% 12% 9%

Not active in many 5% 4% 6% 6% 7%

Not active at all 1% 1% 1% 1% 2%




Are loyalty programs still valuable to a business?

Q Listed above are a number of things other people have shared with us about how they feel about loyalty programs generally. Using the scale below, please indicate to what extent you agree or disagree with each one.

I tend to buy more from the companies whose program I am a member of

When choosing between two similar companies, I tend to buy from one that has a loyalty program

Loyalty programs have improved a lot in recent years and tend to offer good benefi ts to members

I tend to feel more loyal to the company/brand when I am a member if their program

Most loyalty programs don’t offer me any real value

Most loyalty programs just don’t seem to understand how to communicate appropriately with their members

%Agree/Strongly Agree YES, members buy more!

In 2015, 82% of members said they tend to buy more from the

companies whose program they are a member of verses 80%

for 2013.

YES, loyalty programs are a competitive advantage

With so much choice available it’s clear that those companies with

a program still have a competitive advantage over those that don’t.

With no change since 2013, 55% of members still tend to buy

from a company that has a program over a similar kind of company

that does not.

82%80%

55%

48%

47%

38%

26%

55%

41%

46%

40%

27%YES!

2015 2013



Loyalty programs are improving!

Members are seeing improvements in loyalty programs (although

there is still lots of room for growth).

The 2015 study reveals that 48% of members tend to feel

programs have improved and this is a 17% incremental increase

on 2013 results. So companies and brands are beginning to get the

message that programs do need to be meaningful to members and

provide benefi ts that members want their loyalty.

But please don’t relax ... there is more to customer loyalty than a programWhile a program drives increased spend and is a competitive

advantage, a loyalty program still does not equal customer loyalty.

With a very small change since 2013, only 47% of members tend to feel

more loyal to a company/brand when they belong to their program.







%Agree/Strongly Agree

82%

80%

55%

48%

47%

38%

26%

55%

41%

46%

40%

27%

2015 2013





And... programs can still be even more valuable!It is nice to see that there has been a decline (if only very slight) in

the view that programs DON’T offer any real value.

Programs are still NOT performing with communicationOver a quarter of members (26%) believe that most

loyalty programs just don’t seem to understand how to

communicate appropriately.

Driving relevant and personal communications is still a great

opportunity for programs to improve.









82%

80%

55%

48%

47%

38%

26%

55%

41%

46%

40%

27%

2015 2013




Total Male Under 45 years

Female Under

45 years

Male 45 years+

Female45 years+

I tend to buy more from the companies whose

program I am a member of 82% 84% 89% 79% 79%

When choosing between two similar companies,

I tend to buy from one that has a loyalty program55% 54% 60% 48% 55%

Loyalty programs have improved a lot in recent

years and tend to offer good benefi ts to members48% 48% 54% 40% 50%

I tend to feel more loyal to the company/brand

when I am a member if their program47% 53% 54% 38% 46%

Most loyalty programs don’t offer me

any real value38% 43% 35% 44% 34%

Most loyalty programs just don’t seem to

understand how to communicate appropriately

with their members

26% 32% 24% 32% 22%

Women under 45 years are the greatest advocates of loyalty programs

Younger women are far more likely to agree that they:• Buy more from companies with a

loyalty program;• See great improvement in loyalty

programs in recent years; and• Feel more loyal to brands if they are a

member of their program.





Female Under

45 years

Male 45 years+

Female45 years+

I tend to buy more from the companies whose

program I am a member of 82% 84% 89% 79% 79%

When choosing between two similar companies,

I tend to buy from one that has a loyalty program55% 54% 60% 48% 55%

Loyalty programs have improved a lot in recent

years and tend to offer good benefi ts to members48% 48% 54% 40% 50%

I tend to feel more loyal to the company/brand

when I am a member if their program47% 53% 54% 38% 46%

Most loyalty programs don’t offer me

any real value38% 43% 35% 44% 34%

Most loyalty programs just don’t seem to

understand how to communicate appropriately

with their members

26% 32% 24% 32% 22%

Men over 45 years are the least in favour of loyalty programs

They are:• Less than other members to see great

improvement in loyalty programs in recent years;

• Less likely to be more loyal to brands if they are a member of their program.




In 2015 some program benefi ts are moving up the ranks

There have been some movements in the ranking of benefi ts that members consider to be very important from 2013 to 2015.

Exclusive offers jumps to 3rd place from 4th in 2013… members want to feel more special!

Programs with benefi ts for members accrued from partnerships

with other businesses jumps to 5th place from 6th in 2013 which

means that members want more opportunities to earn rewards outside of the business whose program they belong to.

2013 - Base: n=884

2015 ranking 2013 ranking

Immediate price discounts when making purchases 78% 80%


77% 77%

Exclusive offers available to members only 66% 64%

Surprise gifts or surprise rewards that arrive without you making a redemption 64% 67%

Partnerships with other businesses/brands that can increase the opportunity to accrue rewards or points 61% 61%

Access to more rewards based on the more you spend with the company 59% 62%

Sending me information that is tailored and personal to me 51% 51%

Updates on relevant news about the company and its products or services 37% 37%

Different levels of reward based on different levels of spending (eg Gold, Silver and Bronze membership tiers) 36% 36%


2015 -Base: Total sample n= 1367

1

2

3

4

5

6

7

8

9

1

2

4

3

6

5

7

8

9



Money still matters and points for purchase still pleases

It’s clear that transactional benefi ts are still what members want.



Exclusive offers available to members only

Surprise gifts or surprise rewards that arrive without you making a redemption

Partnerships with other businesses/brands that can increase the opportunity to accrue rewards or points

Access to more rewards based on the more you spend with the company/brand

Sending me information that is tailored and personal to me

Updates on relevant news about the company and its products or services


78%

77%

66%

64%

59%

61%

51%

37%

36%

80%

77%

64%

67%

62%

61%

46%

37%

36%

Q Loyalty programs tend to off er a range of diff erent features and benefi ts. Looking at this list above, please indicate how important each of the following features of a loyalty program are to you.

% Very Important/Important2015 2013

2015 - Base: Total sample n= 1367, 2013 Base: n= 884

Program benefi ts


Loyalty programs take note #1 Stop blasting communications and be more relevant.2015 shows an incremental increase of 11% since 2013 of

members who want relevant and tailored information!

Loyalty programs take note #2Stop telling members how great you are!2015 shows that members STILL do not fi nd updates on relevant

news about the company as important.

Loyalty programs take note #3Tears for tiers.Tiered programs are still not an important feature for members.



Exclusive offers available to members only

Surprise gifts or surprise rewards that arrive without you making a redemption


Access to more rewards based on the more you spend with the company/brand

Sending me information that is tailored and personal to me

Updates on relevant news about the company and its products or services


78%

77%

66%

64%

59%

61%

51%

37%

36%

80%

77%

64%

67%

62%

61%

46%

37%

36%

Q Loyalty programs tend to off er a range of diff erent features and benefi ts. Looking at this list above, please indicate how important each of the following features of a loyalty program are to you.

% Very Important/Important2015 2013

2015 - Base: Total sample n= 1367, 2013 Base: n= 884

Program benefi ts


Give women surprise rewards and you will be rewardedYounger women do like surprise gifts and rewardsMen over 45 yo are less keen than women for surprise gifts or rewards... which is a bit surprising!


Female Under

45 years

Male 45 years+

Female45 years+

Immediate price discounts when making purchases 78% 73% 80% 74% 81%


77% 70% 83% 70% 80%

Exclusive offers available to members only 66% 62% 70% 61% 69%

Surprise gifts or surprise rewards that arrive without you making a redemption 64% 60% 72% 54% 68%


61% 59% 61% 58% 65%

Access to more rewards based on the more you spend with the company/brand 59% 57% 63% 54% 60%

Sending me information that is tailored and personal to me 51% 49% 51% 46% 54%

Updates on relevant news about the company and its products or services 37% 38% 35% 36% 40%


36% 41% 37% 32% 34%

Program benefi ts



Make your points programs more meaningful to menMen are less likely to prefer points based programs.If you are planning a program with points and your audience is primarily men, think carefully on how to make it meaningful to them.


Female Under

45 years

Male 45 years+

Female45 years+

Immediate price discounts when making purchases 78% 73% 80% 74% 81%


77% 70% 83% 70% 80%

Exclusive offers available to members only 66% 62% 70% 61% 69%

Surprise gifts or surprise rewards that arrive without you making a redemption 64% 60% 72% 54% 68%


61% 59% 61% 58% 65%

Access to more rewards based on the more you spend with the company/brand 59% 57% 63% 54% 60%

Sending me information that is tailored and personal to me 51% 49% 51% 46% 54%

Updates on relevant news about the company and its products or services 37% 38% 35% 36% 40%


36% 41% 37% 32% 34%

Program Benefi ts


Top 10: Top 2 still battle it outfl ybuys still number 1, Everyday Rewards = number 2 (although it declined signifi cantly since 2013)Since 2013 – MYER one and Priceline’s Sisterclub drop back a place to make way for

Virgin’s Velocity which jumps to 4th.

New entries to the top 10 are Westpac Altitude Rewards (8th) and

Hoyts Rewards (10th).

A huge increase in Other Programs mentioned doing a good job (2013 was1%;

2015 increased to 13%).

The number of members who did not mention any program “doing a very good

job” has jumped from 12% to 25%, which is a huge 100% increase, indicating that

programs are still not making a remarkable impression on members for them to

highlight them unprompted.


The 2013 top 10 most mentioned loyalty programs (unprompted) as doing a particularly good job

Coles/fl ybuys



MYER one


Virgin – Velocity

CBA Credit Card

IGA

Millers

Rewards Central

Spotlight

Other Programs

None

37%22%

11%6%

5%2%

1%1%1%1%1%<1%

12%

Base: n= 884


The 2015 top 10 most mentioned loyalty programs (unprompted) as doing a very good job

Coles/fl ybuys



Virgin – Velocity

MYER one

Priceline

Millers


Commbank Awards

Hoyts Rewards

Other Programs

None

13%6%

3%2%2%

1%1%

1%1%

13%

25%

Base: n= 1385 members answered this question (some provided more than one program). Of these 1036 members mentioned a

program(s) as doing a ‘very good’ job out of 97 unique programs that they provided unprompted.

33%

Who is doing a good job?


97 loyalty programs were mentioned unprompted by members as doing a very good job

1 Asia Miles

2 Accor

3 Adelaide Unibar

4 Advantage Chemist

5 Amart Sports

6 Amcal

7 American Express

8 Amplify

9 ANZ Rewards

10 Autograph

11 Bakers Delight

12 Barossa Co-op

13 BCF Club

14 Bernardis

15 Boost

16 Booyah

17 Brumby's

18 Calvin Klein VIP

19 Chemplus Rewards

20 Choice Pharmacy

21 Cibo Coffee

22 Cinebuzz

23 Cmca

24 Co-op Store

25 Coffee Club

26* Coles fl ybuys27* Comm Bank Rewards28 Country Road

29 Crossroads

30 Crown

31 Cue

32 Dan Murphy's

33 Dendy Cinemas

34 Donut King

35 Dymocks

36 Easter 30

37 EB Games

38 Emirates Skywards

39* Everyday Rewards40 Farmer Jack's

41 Gloria Jeans

42 Go Mastercard

43 Golden Chain

44 Guzman & Gomez

45 Hogs Breath Café

46* Hoyts Rewards47 IGA

48 Jeans West

49 Katies Fashion Club

50 Kathmandu

51 Krisfl yer

52 Kunara

53 Le-wrap

54 Lincraft

55 Lorna Jane

56 Lowes

57 Macdonalds coffee card

58 Mad Mex

59 Mastercard

60* Millers

61* MYER one62 Nielsen HomeScan

63 Nike

64 NoniB

65 Petbarn

66 Petstock

67 Pharmacy Essentials

68 Pillowtalk VIP

69* Priceline Sisterclub70* Qantas Frequent Flyer71 RACQ

72 Restore Rewards

73 Rewards Central

74 Ritchies

75 Rivers

76 Salsa

77 San Churros

78 Spotlight

79 Starwoods

80 Sunshine Coffee

81 Super Cheap Auto

82 Sussan

83 Terry White Chemists

84 The Entertainment Book

85 LaManna Direct

86 The Village Cinemas

87 Thirsty Camel Hump Club

88 Toys R Us

89 TS14 Platinum Rewards

90 United Mileage Plus

91 US Airways Dividend Miles

92* Virgin Velocity93 Veludos

94 Vintage Cellars

95* Westpac Altitude Rewards96 Witchery

97 Zouki Coffee

* Top 10 program

Base: n= 1385 members answered this question and of these 1036 members mentioned a program(s) as doing a ‘very good’ job out of 97unique

programs that they provided unprompted


97 programs listed in alphabetical order



Why do members think they are doing a good job

ANZ Rewards“It is the best I’ve used. By paying for everything I

buy, where possible, with the card and then clearing the card balance each month I’m gaining $500 to $1000 in cash rewards cards annually at no cost and have been

for something like 20 years.”Male 65 – 74 yo

Priceline - Sisterclub“It actually rewards you! In several ways! You get 3% of your total spend back -and with no expiry date, lots of interim decent specials eg. 20% off all make-up for 2 whole days. Genuine price reductions. Aff ordable

luxury fragrances etc..”Male 35 – 44 yo

Everyday Rewards“Its simplicity - present your card when paying, receive

vouchers in the mail every few months or once a year, use them on your next shop at Woolworths. No need to activate email off ers, remember to take coupons, shop on particular

days or decide what to redeem points for.” Female 45-54 yo

Supercheap Auto“They credit back the diff erence if your

product goes on special within 2 weeks.” Male 25 – 34 yo

Qantas Frequent Flyer“Lots of ways to earn points and

good points to rewards ratio. good communication without spamming and lots of deals”

Male 18 – 24 yo

Cinebuzz Rewards“Easy to earn points and redeem.

It’s free to join & no renewal fees. They do not frequently ‘shift the goal posts’.”

Male 55 – 64 yo

Boost“Very good use of Android

apps and promotions.”Male 35-44 yo

My Dan Murphy’s“You get great bargain products based on your

preferences and what you buy.”Male 65 – 74 yo

Flybuys“Very interactive and

keeps me involved week by week. Others are very

passive and wait for me to come to them.”

Male 35 – 44 yo

Virgin Velocity“Good rewards, good partner programs, very effi cient customer service, fl exibility

in using accrued points.” Male 35-44 yo

Coles fl ybuys“They are generous.”Female 45-54 yo

Millers“I have to shop anyway, so I collect

points just for doing what I have to do. They often off er bonus points for buying

certain products or for spending a particular amount. I can also do their

monthly survey for extra points.”Male 35 – 44 yo

MYER one“Lots of opportunities to save.”

Male 35-44 yo



…would like a traditional card

…would like a mobile phone app

…would like both

12%

31%

The card is still alive and kicking!With all the mobile hype, it is surprising to see how members still want the plastic and this preference has increased incrementally by 17% since 2014.Interest in using a mobile app to interact with a program has

actually declined (albeit slightly) since 2013.

Members want the card – and this preference has had a

remarkable increase!

Getting the card into the wallet/purse is a critical piece of brand

real-estate and connection!

2015 2014

10%

23%

Q Given an option for a physical membership card for your purse/wallet or a mobile phone app to interact with your loyalty program (i.e. to earn or redeem points), which would you prefer?


Card vs App

57%67%


20152015

2015

WOMEN over 45yrs

WOMEN under 45yrs

MEN under 45yrs

MEN over 45yrs

76% 73%

47%54%

73%78%

41%52%

WOMEN over 45yrs

WOMEN under 45yrs

MEN under 45yrs

MEN over 45yrs

38%33%

16%22%

36%

29%

17%23%

Preference for a traditional card has grown in all demographic

segments

The preference for both has declined across all segmentsInterest in using a MOBILE APP to interact with a program has

actually DECLINED (albeit slightly) since 2013

Are our phones becoming as cluttered now as our wallets were?Interest in using a MOBILE APP to interact with a program is declining in the younger age groups, indicating there might be APP fatigue

…Would like a mobile app

10%

…Would like a traditional card

67%

…Would like both

23%

Q Given an option for a physical membership card for your purse/wallet or a mobile phone app to interact with your loyalty program (i.e. to earn or redeem points), which would you prefer?

20142015 20142015 20142015

WOMEN over 45yrs

WOMEN under 45yrs

MEN under 45yrs

MEN over 45yrs

15%13%

6%

19%

23%

6%4%5%

Card vs App



Base: Consumers who have defected

Member defection remains passiveDefection from loyalty programs has improved slightly, down to 22% in 2015 vs 26% in 2014. Remember: Defection from a program = defection from the brand!

Q Have you stopped participating in a loyalty program that you had previously been an active member of in the last few years?

Yes, I simply stopped participating Yes, I formally requested to be removed

20%18%

6%4%

2014

65 yrs +55-64 yrs45-54 yrs35-44 yrs25-34 yrs18-24 yrs

17%15%

31%

21% 19%21%

12%14%

17%20%

15%16%

% who ‘simply stopped participating’2015

20142015

Defection from program

The greatest improvement in defection is in young members, down from 31% in 2014 to 21% in 2015.


‘Earn ‘n Burn’ rate is the major reason for defection and getting worse.

I wasn’t earning points / rewards fast enough

I no longer shop there or use their services

The rewards didn’t appeal to me

Too much of a hassle to participate

There were too many cards in my wallet

I chose to participate in other programs instead

I was getting too many emails / mail from them

They didn’t communicate with me enough

I just forgot about it

It was too confusing

I was concerned about my privacy

It felt like they knew too much about me

51%59%

42%42%

36%40%

26%25%

13%

23%

23%16%

18%16%

13%

13%

15%

14%

19%12%

14%9%

15%8%

In 2015, the ‘Earn ‘n Burn’ rate is still a major reason for defection

and increasing to 59%, an incremental increase of 16% over 2014.

Card clutter jumps by 77%

In 2015, too many cards jumped to 23%, an incremental increase

of 77%. So make sure your program is valuable enough to be in

their wallet/purse!

GREAT NEWS! Programs are getting simpler

In 2015, ‘it was too confusing’ dropped by an incremental

amount of 37% - which means brands are starting to simplify

their programs.

Privacy not so much of a concern

In 2015, privacy concerns are reducing.

Q Which of the following, if any, have contributed to you stopping participation in a loyalty program? Please select all that apply.

Base: Consumers who have defected

20142015



Some vocal points of view

“The card simply didn’t work and the staff couldn’t have cared less when I sought their assistance.”

“It was a pissant little scheme that gave about

point nothing of a percent discount provided you purchased cackloads

of product.”

“Their customer service was awful.”

“I only shopped with this company online, but their

rewards could only be used in store.”

“Points expired too quickly”


Female Under 45 years

Male 45 years+

Female45 years+

I wasn’t earning points / rewards fast enough 59% 57% 56% 64% 60%

I no longer shop there or use their services 42% 40% 43% 40% 44%

The rewards didn’t appeal to me 40% 41% 35% 47% 40%

Too much of a hassle to participate 25% 29% 24% 28% 20%

There were too many cards in my wallet 23% 22% 25% 16% 24%

I chose to participate in other programs instead 16% 17% 12% 19% 17%

I was getting too many emails / mail from them 16% 21% 19% 16% 13%

They didn’t communicate with me enough 15% 14% 11% 17% 17%

I just forgot about it 14% 9% 19% 12% 15%

It was too confusing 12% 16% 9% 16% 10%

I was concerned about my privacy 9% 9% 8% 10% 8%

It felt like they knew too much about me 8% 10% 5% 12% 5%

Reasons members defect by age, with men over 45 more concerned with rewards appeal and not too concerned about card clutter


4.0

4.2 Revealing 9 new insights that impact on brand loyalty and loyalty program success

Detailed fi ndings


We explored 3 key areas and reveal 9 new insights that impact on the lifeblood of loyalty program success and the infl uence on a members’ buying behaviour.

1. The impact that loyalty programs have on brand loyalty

2. The power of a loyalty program’s infl uence over buying behaviour

3. Evolving your loyalty program benefi ts based on members’ behaviour

This research gets ‘under the skin’ of members to fi nd out what makes their ‘loyalty’ heart beat.

?


The impact that loyalty programs have on brand loyaltyBrand switching: Do loyalty programs have any infl uence on whether members switch brands?Loyalty programs do have an infl uence on brand switching, which

means members are up for grabs! (Two sides to this coin = you can

capture your competitors members and they can capture yours!)

28% of members have switched brands on at least one

occasion to get more benefi ts from a loyalty program

Men under 45 years are the most fi ckle and whose loyalty can be bought! 42% of men under 45 years have switched brands on at least

one occasion to get more benefi ts from a loyalty program. This is

signifi cantly higher than any other segment!

Insight for loyalty programs

Keep a keen eye on your younger male segment and fi nd reasons to keep them engaged in your program

WOMEN over 45yrs

WOMEN under 45yrs

MEN under 45yrs

MEN over 45yrs

I have switched brands on at least one occasion to get more benefi ts from a loyalty program


% Strongly agree/ Agree

22%35% 42% 20%



Connection of brand loyalty to loyalty programs: Is brand loyalty inherently connected to the strength of a loyalty program?

WOMEN over 45yrs

WOMEN under 45yrs

MEN under 45yrs

MEN over 45yrs

21% of members are connected to the brand through the strength of their loyalty program.

I wouldn’t be loyal to a brand that didn’t have a strong loyalty program

A strong loyalty program does play it’s part in keeping members loyal to a brand, particularly younger men.


21%24% 26% 17%



Do members think brands need a loyalty program to keep their customers loyal?

Yes, loyalty programs are an important strategy to keeping customers loyal.Over half (58%) of loyalty program members believe that a

brand needs a loyalty program to keep their customers loyal.

...that brands need a loyalty

program to keep their

customers loyal.

“It’s nice to be rewarded for being loyal, and with so many companies

out there that have loyalty programs, it’s easy to fi nd another company that has a loyalty program and can price

match a product”Female 35 – 44 yo

nominated Jeanswest as a program doing a very good job

“I feel good”Female 35 – 44 yo

nominated The Coffee Club as a program doing a very good job

“It’s a great way for customers to feel valued”

Male 25 – 34 yo nominated Country Road as a program doing a

very good job


58%

42%

do believedon’t believe


More reasons why members believe brands need a loyalty program

“I think if consumers are loyal to a brand they should be rewarded in some way and a

redemption scheme is a good way of rewarding loyal consumers.”

Female 18 – 24 yonominated QFF as a program doing a very good job

“Genuine loyalty to brands has become a thing of the past, due to information

overload, so companies must fi nd other ways to generate ‘loyalty’.”

Male 55 – 64 yonominated Virgin’s Velocity Program as doing a

very good job

“Brands that off er Loyalty programs tend to be higher profi le & motivated to

seek customer loyalty.” Female 55 - 64 yo

nominated Flybuys as a program doing a very good job

“It is encouraging to be given back something for choosing a brand

over others.”Female 45 -54 yo

nominated Hoyts Rewards as the program doing a very good job

“Just nice to be rewarded for loyalty.”

Female 55 - 64 yonominated Everyday rewards as a

program doing a very good job

“Because I could probably get the same thing for less

money elsewhere.”Female 25 – 34 yo

nominated Vintage Cellars as a program doing a very good job

“I think it helps consumers keep a certain

company in mind.”Female 65 – 74

nominated fl ybuys as a program doing a very good job

“Keeps customers feeling like they’re part of the

company”Male 25-34 yo

nominated MYER one as a program doing a very good job

“It’s the way of the future. Those companies with no loyalty programs are

lagging behind their competition.”Male 25 – 34 yo

nominated QFF as a program doing a very good job



Younger members view loyalty programs as central to brand loyalty

“These days there are always an alternative that will have a loyalty

program that gives the customer more for there money then those that don’t”

Female, 18-24 yonominated Flybuys as a program doing a very good job

“Because it will make people happy”

Female, 18-24yonominated San Churros as a program

doing a very good job

“It shows that the company cares and rewards loyal customers.”

Male 25-34yo,nominated QFF as a program doing a very good job

WOMEN over 45yrs

35-54 years

WOMEN under 45yrs

Under 34 years

MEN under 45yrs

55+ years

MEN over 45yrs

48%60%71%

52%66% 67% 52%

71% of under 34 yrs believe that brands need a loyalty program to keep their customers loyal.



Believe that brands need a loyalty program to keep customers loyal.



And here’s why members don’t think brands need a program

“A good company will fi nd eff ective ways to connect with their customers without a loyalty program. Vintage cellars would probably get business from me regardless

based on their regular discounting program. Qantas gets business from me regardless because they have acceptable legroom compared to the other domestic airlines (they are shitful in almost every other regard

though, so I guess leg room is enough for me ...).”Male 45 – 54 yo

“If I really like a brand and it doesn’t off er a rewards program I’d still go there. I’d rather get exactly what I want than get a discount on something I don’t want as much. It’s nice

to receive discounts on things you would have paid the full amount for anyway.”

Male 18 – 24yo

“Loyalty should be earnt with good products and service. “Loyalty cards”

are just a trick to harvest data and make consumers feel locked in.”

Male 18 – 24yo

“Too long to get rewards.”Female 25 – 34yo

“If the brand is good enough it should stand

alone regardless of loyalty program.”

Male 35 – 44yo

“I think people will buy what they like regardless of the

incentives.”Female 55-64yo

“I think people will buy what they like regardless

of the incentives.” Female 55-64yo

“I don’t choose the brand because of the loyalty card, I choose a brand based

on reputation.”Male 25 – 34 yo

“Good quality and customer service

alone can get loyalty.” Male 55-64yo

“Free stuff isn’t the only reason people become loyal, ethical behaviour as well

as caring for all stakeholders a company has can keep customers more loyal than economic loyalty where the customer is

only loyal for their own benefi t.”Female 35 – 44 yo



Why do members think brands off er a loyalty program?

When working out WHY your business/brand needs a program, refl ect on the members’ point of view and see if there is any alignment.

Q We are interested in why you think brands off er loyalty programs. Please indicate how important you believe each of these factors are to a brand that off ers a loyalty program to its customers (select as many as you think are important).




To attract new customers

To keep up with what their competitors are doing

To collect your data so they can improve their own business

To measure the impact of their own marketing

To collect your data so they can give you more relevant offers and benefi ts

To encourage you to recommend them to other people

To recognise you as an important customer

To reduce the need to discount prices

69%

67%

63%

53%

52%

51%

50%

47%

41%

40%

30%

1

2

3

Competitive advantage

Buying more often

Spending more


ALL reasons



Most important reason brands off er a loyalty programCompetitive advantage is the number one reason that members think brands off er a program. Interestingly, data comes in at 4th.

Q And which of these do you believe is the single most important reason that a brand off ers a loyalty program?




To collect your data so they can improve their own business

To recognise you as an important customer

To attract new customers

To collect your data so they can give you more relevant offers and benefi ts

To keep up with what their competitors are doing

To measure the impact of their own marketing

To reduce the need to discount prices

To encourage you to recommend them to other people

18%

11%

8%

4%

4%

3%

3%

2%

1%


MOST IMPORTANT reason

24%

23%



The power of a loyalty program’s infl uence over buying behaviour

The inherent benefi ts that some programs provide are powerful enough to infl uence incremental impulse purchases – even if the item(s) purchased is not needed.

Loyalty programs DOinfl uence impulse purchases!

If 16% of your loyalty member base purchased an extra

item (that they would not normally) , then what is the total

value of that towards your revenue?

Total base (vol) x 16% x $extra item = $?

Loyalty programs and impulse purchases: Do members purchase items that they do not need because of a loyalty program?

16% of members have purchased items they did not need, just to earn points or maintain

program benefi ts.

Younger men are more impulsive! 26% of men under 45 years have bought something they don’t really need in order to earn more points

or maintain program benefi ts. Again much higher than any other segment!

I have bought something I didn’t really need in order to earn points or maintain program benefi ts

MEN under 45yrs

WOMEN under 45yrs

WOMEN over 45yrs

MEN over 45yrs

11%21% 26% 8%


Infl uence over buying behaviour


Evolving your loyalty program benefi ts based on members’ behaviour

Points for purpose: Do members want opportunities to donate or redeem points/rewards or vouchers to charities or local community initiatives?

Give members ‘Points for Purpose’Over a quarter of members of loyalty programs (27%) want

to donate or redeem their points/rewards to charities or local

community initiatives.

Which means that programs should consider providing this as an

option for their members.

27% Opportunities to donate or redeem my points/rewards or vouchers to charities or a local community initiative

Evolving loyalty program benefi ts


From transaction to interaction: Do members want benefi ts for interacting with the brand through the program such as for answering surveys, opening emails and others?

Evolve your program’s benefi ts from transaction to interaction

There is keen interest in non-transactional rewards.Completing surveys and opening emails are the best opportunity for additional engagement.

Programs need to move from one-dimensional “transaction-based” rewards by adding “interaction-based rewards” as a deeper way to engage members.

Rewards offered for answering surveys from

the loyalty program

Rewards offered for opening emails from the

loyalty program

Rewards offered for attending specifi c

events

Rewards offered for referring friends to

the program

Rewards offered for sharing information

about the program on social media

% Very Interested/Interested

53%

46%

20%

18%

17%

2015

Q A number of alternatives are being considered by loyalty programs to reward Members for things other than spending money with them. Please use the scale below to indicate how interested you would be in each of these alternatives.

Base: Total Sample n= 1367



Younger members are most inclined to take up the opportunities for ‘program interaction’

Total Under 35 years 35-54 years 55 years+

Rewards offered for answering surveys from the loyalty program

53% 55% 45% 40%

Rewards offered for opening emails from the loyalty program

46% 61% 48% 51%

Rewards offered for attending specifi c events 20% 31% 20% 13%

Rewards offered for referring friends to the program 18% 25% 19% 13%

Rewards offered for sharing information about the program on social media

17% 27% 18% 10%




Cash in the points: Do members want to accumulate cash rewards or accumulate points to redeem for non-cash rewards?

It’s all about the money, money…81% of members want

cash based rewards.

This represents a CLEAR OPPORTUNITY for loyalty programs to ensure CASH based rewards is a benefi t

Strong preference across all segments for cash

based rewards.

Q Given an option within a loyalty program to accumulate cash rewards (or cash discounts) OR to accumulate points (that can be redeemed for non-cash rewards), what is your preference?

81%

19%

Prefer CASH based Prefer POINTS based

WOMEN over 45yrs

WOMEN under 45yrs

MEN under 45yrs

MEN over 45yrs

81%84%

75%

19%16%

25%20%

80%

POINT based rewardsCASH based rewards




Now vs the future: Do members want immediate lower value rewards or accumulate higher value rewards over a longer time?

The prospect of accumulated, higher value

rewards has most appeal.

If you develop a program that has high value rewards that give members the opportunity to acquire over longer period you will win as they will spend and stay with your business longer!

Members can wait for high value rewards and patience pays off !

Q Given an option for ‘immediate rewards’ (eg. a discount or voucher of a relatively low value) OR rewards that take a longer time to accumulate (but are of much greater value), what is your preference?

68%

32%

WOMEN over 45yrs

WOMEN under 45yrs

MEN under 45yrs

MEN over 45yrs

65%70%

62%

35%30%

38%

28%

72%

Prefer ACCUMULATED rewards Prefer IMMEDIATE based

IMMEDIATE based

rewards (lower value)

ACCUMULATED rewards

(higher value)



VS

4.0

4.3 - 28 Australian loyalty programs reviewed

Detailed fi ndings


MYER oneAmcal RewardsMillers FashionSpotlight VIP

myDanMurphy’sANZ Rewards

Big4 Loyalty ClubKaties Fashion Club

Vintage Cellars WineclubAccor Hotels – Le Club

Coles – fl ybuysRays Outdoors

Virgin – VelocityKathmandu Summit Club

Hoyts Rewards

Commonwealth Bank awards program

The Coff ee Club VIPBoost VIP

Thirsty Camel – Hump ClubStarwood Preferred Guest

Supercheap AutoPriceline – Sisterclub

Country Road – VIP cardholderVillage Movie Club

Woolworths – Everyday RewardsQantas Frequent Flyer

RebelWestpac Altitude Rewards

28 Australian loyalty programs reviewedFor the fi rst time in our research studies, we provided members with a list of 28 randomly selected Australian Loyalty programs to give members the opportunity to identify:• Which programs they are a member of

• How active they are in these; and

• Their view on whether it is a poor or excellent program.

The results are surprising!

Note. The authors of this research study have no vested interest in any of the listed loyalty

programs. They were chosen randomly from the Australian loyalty program market place.

The 28 loyalty programs were also randomly presented in the research to avoid bias

of selection.


Ranking of 28 Australian loyalty programs based on membership

Coles fl ybuys



MYER One

Virgin Velocity


Spotlight VIP

Millers Fashion

Comm Bank Awards

Hoyts Rewards

myDanMurphy’s

Village Movie Club

Boost VIP

Katies Fashion Club

Amcal Rewards

Accor Hotels – Le Club


Supercheap Auto

Rebel Sport

ANZ Rewards


Rays Outdoors

The Coffee Club VIP

Starwood Preferred Guest

Vintage Cellars Wineclub

Country Road VIP

BIG4 Loyalty

Thirsty Camel

73%72%

52%32%

29%28%

21%16%

8%7%7%7%7%7%

6%5%5%5%5%5%

4%4%4%

3%3%

2%1%1%

Program membership in

Australia is skewed heavily

towards fl ybuys and Everyday

Rewards as well as the Qantas

Frequent Flyer program. This

is because of the extensive

memberships that these

programs have.

Q Looking at the list, please indicate which loyalty programs, if any, you are a member of.

% who are ENROLLED members Base: Total Sample n= 1367


Australians are HIGHLY ACTIVE within the programs they have enrolled into (Top 14/28)

Member activity is highest

when the opportunity to

engage is frequent.

Q Which of the programs you selected, if any, are you an active member of, i.e. you have presented your card or membership number when making a purchase in the last 12 months.

% who are ENROLLED members % who are ACTIVE members

Coles fl ybuys



MYER one

Virgin Velocity


Spotlight VIP

Millers Fashion

Comm Bank Awards

Hoyts Rewards

myDanMurphy’s

Village Movie Club

Boost VIP

Katies Fashion Club

73%72%

69%

32%

25%

72%

52%

32%

29%15%

22%

14%

11%

7%

5%

6%

4%

5%

4%

28%

21%

16%

8%

7%

7%

7%

7%

7%


Active = member has presented their card or

membership number when making a purchase in

the last 12 months.


Members impression on overall quality – from poor to excellent

ANZ Rewards


Coles fl ybuys

The Coffee Club VIP

Hoyts Rewards

Comm Bank Awards

Supercheap Auto

Vintage Cellars Wine Club

Country Road VIP

Millers Fashion



Amcal Rewards

MYER one

Rays Outdoors

Boost VIP

Virgin Velocity


Spotlight VIP

myDanMurphy’s

Katies Fashion Club


Accor hotels – Le Club

Rebel Sport

Village Movie Club

51%50%

46%46%

45%44%

43%40%

37%36%

34%34%34%

33%33%

32%31%

29%26%26%

23%23%

21%17%

16%

Banks are getting it right! The loyalty programs of two major banks are

given strong endorsement by members

Flybuys rated much higher than Everyday Rewards.

Country Road leads the fi eld in the fashion stakes

Hoyts Rewards rated much higher than Village Movie Club

% rating as ‘Excellent’

Q. Looking still at the programs you are an active member of, indicate the impression you have of that program based on your own experiences. Scale from 1 (poor) to 7 (excellent)

Base: Respondents are ACTIVE members of the respective programs

Top 25

5.0

The people who love loyalty programs

Behind the research


People behind the research

Established in 2007, Directivity provides customer loyalty and retention

strategies and programs for organisations operating in sectors as

diverse as accommodation, leisure and entertainment, trade, education,

manufacturing and retail.

Adam Posner (CEO and founder) is one of Australia’s leading loyalty

program strategists and has been a data-driven direct marketer for

23 years.

He started his loyalty life in the mid ’90’s with a shopping centre loyalty

program initiative called “Scratch & Save”.

Since then he has been involved in a range of loyalty and retention

programs from large retail programs such as the fl ybuys program re-

launched in 2012 as well as developing fi nancial ‘Return on Loyalty’

models for pharmacy, entertainment and large accommodation

networks.

Adam is also the author of one of Australia’s only practical book on

loyalty programs – ‘Give-back to Get-back - 9 steps to a profi table

loyalty program’ and is a frequent speaker on customer loyalty

and retention.

Citrus is a Retention Marketing Consulting fi rm focused on helping

retailers & consumer brands to grow the size, engagement & value of

their customer audiences through data-driven, personalised marketing

automation programs across email, mobile, social and the web.

Peter Noble is the CEO & Head of Strategy for Citrus. With more than

17 years’ experience in the digital marketing space in Australia, Peter

has lead the Citrus team to deliver world-class 1:1 marketing programs

for leading brands such as Agoda, Yalumba, Seek, Coopers, adidas,

TaylorMade, and the Victoria Racing Club, amongst others.

Peter is a passionate advocate of the power of loyalty programs

to create long-term brand loyalty, particularly through digital

communications across email, mobile, social media and the web.

Peter has featured as a keynote speaker at many key marketing

conferences around Australia and Asia and has featured in many articles

discussing the importance of loyalty and retention programs to brands.

Peter has been a member of the Australian Marketing Institute

since 2002, and is a Certifi ed Practising Marketer (CPM), the peak

professional benchmark for marketers in Australia.

THE LOYALTY POINT

www.theloyaltypoint.com.au

Directivity

Adam Posnert. 0433 818190e. [email protected]. directivity.com.au

Citrus

Peter NobleLevel 8, 100 Albert RoadSouth MelbourneVictoria Australia 3205

t. +613 9681 5333e. [email protected]. citrus.com.au