And the best loyalty program goes to… Coles

And the best loyalty program goes to… Coles

Coles’ Flybuys loyalty scheme is the most popular loyalty program in Australia, with Woolworths’ Everyday Rewards coming in a not-so-close second, according to a new report into customer loyalty schemes.

B&T Magazine
Posted by B&T Magazine

The figures come from a survey of 1000 Australians conducted by marketing insights company Directivity and digital agency Citrus called For Love or Money: 2013 Consumer Study into Loyalty Programs.

Findings revealed a landslide 37% of respondents said Coles was doing a “particularly good job” with its Flybuys loyalty program, while 22% said the same of Woolworths.

Qantas Frequent Flyer program came in third (11%), followed by MyerOne (6%), Priceline (5%)and  Virgin (2%). CBA Credit Card, IGA, Millers, Rewards Central, Spotlight were also commended by 1% of respondents.

The study aimed to find out whether being a member of a loyalty scheme influenced consumers’ buying behaviour. It explores the penetration and popularity of loyalty programs in Australia, investigates what make up the key elements of a successful program, and how consumers like to be communicated to.

According to the report, around 80% of consumers buy more from companies whose programs they are members of, while 55% will choose a product or a company with a loyalty program, over one without.

Furthermore, 88% of interviewees said they belonged to a loyalty program and 46% said they felt more loyal to a brand because of a loyalty program.

Men are members of fewer programs (average three) but more active with the memberships, presenting their card at the point of purchase or actively looking to accrue points.

Women are members of more programs (average five) and tend to spread their spend across more programs. Consumers over 55 tend to buy more, choose from brands that have a program, but believe more strongly that programs don’t provide any real value.

Financial benefits are still the most sought after program benefit, with 80% of consumers seeking immediate price discounts when making purchases.

Points-based programs that enable members to redeem points for vouchers or other rewards are also important (77%). Exclusive offers (64%) and access to more rewards based on spend (62%) also rank highly with consumers. Tiered loyalty programs whereby consumers compete for status points (bronze, silver, gold) were found the least popular and least effective.

One young male respondent from Tasmania said: “Offers that have an immediate discount are better than non-tangible and confusing schemes such as points.” This sentiment was echoed across the board. 

Over 80% of respondents said personalised email is by far the most preferred channel to communicate with members, followed by direct mail (37%).

Mail particularly appeals to tech-savvy consumers under 25 due to the novelty factor and the association of ‘good news’ rather than older members who are likely to associate letters with bills.

Latest News

Lean Startup Machine to lead 4-day event in Sydney
Media

Lean Startup Machine to lead 4-day event in Sydney

Lean Startup Machine CEO & Founder Trevor Owens is to lead a 4-day event in Sydney. New York-based Lean Startup program, Lean Startup Machine (LSM), has announced its return to Sydney in partnership with digital development company, Vivant. Expanding outside its usual perimeters, the event will additionally incorporate a two-day enterprise bootcamp aimed at introducing […]

Submissions Closing For Hills Young Innovator of the Year Award
Media

Submissions Closing For Hills Young Innovator of the Year Award

If you are under 25 years of age, a bright technology thinker and have an innovative tech idea then nominate yourself today for the new Hills Young Innovator of the Year Award for the chance to win up to $15k in cash to help get your idea off the ground and mentoring by top industry […]

Campaign: Engine Group Launches Evocca College’s New Look
Marketing

Campaign: Engine Group Launches Evocca College’s New Look

Engine Group has launched Evocca College’s new branding campaign that sets it apart in the cluttered educational market. The campaign spans television, cinema, radio, outdoor, digital and social and uses inspirational images and messages to inspire the audience to strive for something better. Evocca College is Australia’s leading RTO with 27 Colleges across Queensland, New South […]

Campaign: Bell Direct Says Why Be Smart When You Can Be Smarter
Marketing

Campaign: Bell Direct Says Why Be Smart When You Can Be Smarter

Bell Direct has launched an online campaign targeting active traders which positions the broker as helping make ‘smart investors smarter’. The campaign runs across all digital channels and includes a content film, banners, pre rolls and microsite. Says Bell Direct CEO Arnie Selvarajah: ‘Having been created by Bell Potter, a well recognized broker and not a […]

Saltmine Group Rebrands Danone Greek Yoghurt
Media

Saltmine Group Rebrands Danone Greek Yoghurt

Sydney brand design agency, Saltmine Design Group, has created a revitalised visual identity for the Danone Greek yoghurt brand, including the new brand name ‘Ultimate’. In a two-step packaging change, Saltmine has repositioned Danone’s Greek yoghurt offering in the yoghurt market to make it a viable premium player. The latest refresh follows on from the huge […]

Saltmine Designs V Ice Coffee
Marketing

Saltmine Designs V Ice Coffee

Frucor Beverages commissioned Sydney brand design agency, Saltmine Design Group, to create a visual identity for its new V Iced Coffee product.