Why Loyalty Schemes Can Be An Utter Waste Of Money

Why Loyalty Schemes Can Be An Utter Waste Of Money
SHARE
THIS



The market is inundated with brands pushing out loyalty programs, however people are jaded towards them, says Greg McAweeney, group executive of marketing at digital banking company, RaboDirect.

“A lot of loyalty schemes can be an absolutely monumental waste of money, because often you end up giving away heaps to clients who are probably already loyal and you probably didn’t have to pay them that in the first place,” he says.

“And also because there are so many out there people get very jaded about them.”

Recent research from consulting company Capgemini Consulting says many loyalty programs haven’t adapted to the digital age.

The research showed most loyalty schemes are a transactional offering where the rewards (like points) are based on purchases.

For RaboDirect, points-based schemes don’t work. Instead, McAweeney prefers to use surprise-and-delight. However, he sees it as the “icing on the cake” rather than a loyalty scheme per se.

“It’s part of our overarching customer relationship management strategy for us,” he says. “A loyalty scheme can be one part of that, but surprise-and-delight for us is the icing on the cake.”

The banking brand’s recent sponsorship of the Apia International Sydney Tennis 2015 saw it bring the surprise-and-delight mentality to Sydney.

Having been a firm sponsor of rugby team Melbourne Rebels down in Victoria, Sydneysiders were missing out.

Calling up customers and inviting them to games is one way the digital brand interacts on a more personal level, says McAweeney, which they were able to do in Sydney with the sponsorship

While you’re not usually clicking onto online banking when you’re in the sweaty throes of match point, McAweeney says the tennis provided a great way to spread the brand awareness.

“You’re going to the tennis to watch tennis,” he adds though. “You’re not going there to open a savings account.”

However McAweeney says it did help drive traffic to the website.

“One of the things we look for in the various sponsorships that we do is to have some sort of experiential element to it for our clients, and obviously have some good media value for ourselves,” he says.

“When the Sydney tennis opened it gave us a chance to reach out to our NSW-based customers.”

“The places we were able to get, just from a media value, represented really good value for us. It was quite useful from an ROI perspective on that.”

However McAweeney says they weren’t sure what to expect in terms of sponsorship results.

“We knew from what we’d paid for it that it would deliver some good media value. I think the fact that it has brought coverage on the secondary channel on Channel 7 [7Mate] really helped.”

Looking at the overall package as a “bang for buck” kind of thing, the most successful part of the sponsorship was the rotating and back-of-court signage.

“I think we had numbers of one and a half million domestic impressions. It was 10 million internationally, which is less important to us, as even though RaboBank is a global bank, for the RaboDirect business we were more concerned with what we could leverage in the domestic market place,” he says.

“It was a healthy return for what we paid for, we were pretty pleased with that.”

Please login with linkedin to comment

uberkittens vero insurance

Latest News

Women In Media Profile: Alison Michalk
  • Media

Women In Media Profile: Alison Michalk

If B&T's Women in Media profiles were an animal they would be a gazelle or lioness, or even a lioness eating a gazelle.

by B&T Magazine

B&T Magazine
Seven’s Sunrise Apologises To ABC For “Unacceptable” Blunder
  • Media

Seven’s Sunrise Apologises To ABC For “Unacceptable” Blunder

A host and the executive producer of Seven’s Sunrise have both issued apologies to the ABC after it was accused of stealing footage from the public broadcaster’s Four Corners program. ABC reporter Mark Willacy yesterday called out Sunrise on Twitter for using footage from the Four Corners special on the recent Thailand cave rescue without […]

by B&T Magazine

B&T Magazine
M&C Saatchi Group’s 1440 Shuts Up Shop
  • Marketing

M&C Saatchi Group’s 1440 Shuts Up Shop

Sadly, M&C Saatchi's 1440 is no more. And chances of it being reborn as 1550 not looking much chop either.

by B&T Magazine

B&T Magazine
Luke Kelly Becomes A Partner At HBT
  • Advertising
  • Marketing
  • Technology

Luke Kelly Becomes A Partner At HBT

B&T's not sure what's with that twirly thing in the press photo, suffice to say a vortex to an alternate dimension?

Grant Broadcasters Makes Several Changes To Senior Executive Team
  • Media

Grant Broadcasters Makes Several Changes To Senior Executive Team

Independent media company Grant Broadcasters has announced a number of changes to its executive ranks. Grant Cameron will move up to become non-executive chairman for the company, and Alison Cameron (pictured above) – currently the chief operating officer – will assume the CEO role. Dugald Cameron remains responsible for the family’s investment portfolio and is […]

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities
  • Advertising
  • Media

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities

Australian retail out-of-home (OOH) business Shopper Media Group (SMG) has announced a partnership with AI-powered wireless networks provider Mist. The partnership will see SMG offer new WiFi, analytics and location-based services across the company’s portfolio of Australian shopping centres. Mist currently provides WiFi and location services using virtual Bluetooth LE technology to businesses across all […]

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account
  • Advertising
  • Media

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account

Travel organisation Cruiseco has announced the appointment of Sydney independent agency This is Flow (TIF) to handle its $5 million media account. This is the first time Cruiseco has appointed an agency, having managed its communications internally. Cruiseco is the largest and broadest distributor of cruise products in the Southern Hemisphere. With a membership base […]

Women In Media Profile: Naomi Shepherd
  • Media

Women In Media Profile: Naomi Shepherd

Need a Monday morning pick-me-up? You could stand naked next to the office fridge or read these inspiring words.

by B&T Magazine

B&T Magazine
APN Outdoor Takes Off With Queenstown Airport Contract
  • Advertising
  • Media

APN Outdoor Takes Off With Queenstown Airport Contract

Out-of-home media business APN Outdoor has won the tender for New Zealand’s Queenstown Airport. As part of the new agreement, APN Outdoor has flagged extensive development plans for Queenstown Airport’s advertising assets. The new contract adds Queenstown Airport to APN Outdoor’s existing portfolio of Auckland and Christchurch Airports. The media company will hire a South […]

Havas Secures Exclusive ‘Fight Of Champions’ Broadcast Rights With Foxtel For Australia & NZ
  • Media

Havas Secures Exclusive ‘Fight Of Champions’ Broadcast Rights With Foxtel For Australia & NZ

Havas Sports & Entertainment ANZ, a division of the broader global full-service agency Havas, has confirmed an exclusive deal with Foxtel to showcase the World Boxing Association (WBA) Welterweight Championship across the trans-Tasman. Billed as the ‘Fight of Champions’, Manny Pacquiao and Lucas Matthysse will square off for the WBA Welterweight belt this Sunday. Havas […]

The Question On Everybody’s Lips At Cannes: How Did Tesco Win The Grand Prix Media Lion?
  • Media
  • Opinion

The Question On Everybody’s Lips At Cannes: How Did Tesco Win The Grand Prix Media Lion?

In this guest post, PHD’s Chloe Hooper (pictured below) analyses the campaign that claimed top honours in the Media category at Cannes this year. I sat in the auditorium as the Cannes Media Lion winners for 2018 were awarded. One thing became instantly clear to me: it is all about taking home Gold or the Grand Prix. […]

Opinion

by B&T Magazine

B&T Magazine
MINI Australia Showcases New ‘Connected’ Vehicles Via Vizeum & Posterscope
  • Advertising
  • Campaigns

MINI Australia Showcases New ‘Connected’ Vehicles Via Vizeum & Posterscope

An integrated campaign by Vizeum Melbourne for MINI Australia’s new ‘Connected’ vehicles will see digital out-of-home (DOOH) served via Posterscope’s Liveposter platform. Delivered centrally, the campaign will showcase the flexible qualities DOOH provides via multiple creatives targeted with specific data overlays such as location, traffic, time of day, and weather triggers such as rain. The […]

Women In Media Profile: Lisa Sheehan
  • Media

Women In Media Profile: Lisa Sheehan

The delightful Lisa Sheehan straps into B&T's "cage of truth" we actually prefer to call our Women in Media profiles.

by B&T Magazine

B&T Magazine
News Corp, Storyful & Fox Sports Join Forces To Support AIME Hoodie Day
  • Advertising
  • Campaigns
  • Marketing
  • Media

News Corp, Storyful & Fox Sports Join Forces To Support AIME Hoodie Day

News Corp Australia, Storyful and Fox Sports have joined forces in support of 2018 AIME Hoodie Day with a creative advertising, PR, social media and editorial campaign across print, digital, and broadcast media. Fox League presenter Hannah Hollis (pictured above) fronts the AIME Hoodie Day campaign, conceptualised, designed and created by News Corp’s trade marketing […]

Storyation Finalist For Global Content Marketing Agency Of The Year
  • Marketing

Storyation Finalist For Global Content Marketing Agency Of The Year

Sydney content marketing agency Storyation has been named a finalist for global Content Marketing Agency of the Year in the Content Marketing Association Awards in the US.  The only Australian agency on the short-list, Storyation was founded by two former Fairfax Media executives Lauren Quaintance (right in photo) and Mimi Cullen (left) and its clients include Tourism […]

Jaden Social Claims Integrated Marketing Tender For NSW Schools Spectacular
  • Marketing

Jaden Social Claims Integrated Marketing Tender For NSW Schools Spectacular

Jaden Social has been awarded the tender to handle integrated marketing for the NSW Schools Spectacular. The agreement will see Jaden Social manage marketing, media, digital and social across the 2018 to 2020 productions of Schools Spectacular, held at Qudos Bank Arena in November. Jaden Social underwent a competitive pitch to secure the account, in […]

APD Australia Appoints New Head Of Digital Product & Strategy
  • Marketing
  • Technology

APD Australia Appoints New Head Of Digital Product & Strategy

Digital transformation business APD has announced the appointment of Chris Butterworth as its Australian head of digital product and strategy. Based in Melbourne, Butterworth (pictured above) will be responsible for building on APD’s owned media team, growing its range of services and developing cross-channel products. Butterworth joins APD from Reprise Digital, where he was most […]