Loyalty Programs Entice Australian Shoppers To Spend More: Nielsen Survey

Loyalty Programs Entice Australian Shoppers To Spend More: Nielsen Survey
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Over half of Australians (57 per cent) say they will spend more with a retailer who offers a loyalty program over one without, research has revealed.

Findings from Nielsen’s Global Loyalty Sentiment Survey outlines that six in 10 Australians are more likely to return to a retailer if they have a loyalty program in place, with almost half of Australians (48 per cent) highlighting they will spend more if they are going to be rewarded.

Megan Treston, director – retailer services at Nielsen explained: “In today’s market, consumers are faced with a dizzying array of retailers vying for their attention, and a retail loyalty program can be a determining factor of where they decide to shop.”

Monetary incentives attached to retail loyalty programs are favoured with product discounts, rebates or cashback offers and free products being at the top of the list of most valued benefits. Frequent flyer points ranked as the highest non-monetary benefit.

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

More than two-thirds  (67 per cent) of Australian loyalty program participants say 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.

“Tailoring loyalty benefits for specific consumers, and using the loyalty program engagement vehicles – be it via an app, email, or in-store interaction – all allow retailers to personalise the loyalty program so that its not just a discount vehicle,” Treston concluded. “Done well, loyalty programs can also help drive more frequent visits and heavier purchasing for retailers.”

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