Coles Flybuys Named Best Loyalty Program, Woolworths Second

Coles Flybuys Named Best Loyalty Program, Woolworths Second
SHARE
THIS



Coles’ Flybuys rewards program has been named the top loyalty program in Australia by loyalty consultancy Directivity and retention agency Citrus.

The study for love or money 2015 is the third annual research study and provides a consumer pulse on loyalty programs, new insights that impact on customer loyalty and benchmarks results over the last three years.

2015 Australia’s top 10 most mentioned programs (unprompted) as ‘doing a very good job’:

  1. Coles flybuys
  2. Woolworths everyday rewards
  3. Qantas Frequent Flyer
  4. Virgin Velocity
  5. MYER one
  6. Priceline Sisterclub
  7. Millers
  8. Westpac Altitude Rewards
  9. Commbank Awards
  10. Hoyts Rewards

Australians – particularly men – are more active in loyalty programs than ever before, in turn boosting a brand’s bottom line, the research also reveals.

Despite perceptions consumers are battling loyalty program fatigue, the study reveals 59 per cent of members are active in all of their programs, a 31 per cent incremental increase from 2013.

And they’re spending more, with 82 per cent buying more from brands with a program and 16 per cent purchasing items they didn’t need just to earn rewards.

Report co-author and CEO of Directivity Adam Posner said while some brands question the value of loyalty programs, the research confirms that successful programs have evolved from cost centres into key profit drivers, and provide a key competitive advantage for brands.

“Loyalty programs are a real business imperative for driving brand loyalty and profitability,” he said.

“This research is a good news story for loyalty marketers. While consumers are telling us they’re more selective with their programs, they’re also more active and engaged.

“Programs also drive impulse purchasing as evidenced by 16 per cent of members who buy things they didn’t need just to earn rewards, which jumps to 26 per cent for men under 45,” said Posner. “If you do the maths, that’s a reasonable additional spend that goes straight to the bottom line,” he said.

According to the research, 48 per cent of members believe programs have improved, up from 41 per cent in 2013. Additionally, fewer people are dropping out of programs, with member defection falling from 26 per cent in 2013 to 22 per cent this year.

“Reduced defection can be attributed to the fact that brands are keeping their programs simple, with only 12 per cent of people saying programs are too confusing, down from 19 per cent two years ago,” said Peter Noble, report co-author and CEO of Citrus.

Key findings the report also reveals:

  • Coles flybuys is still no. 1: Coles flybuys program retained first place in the Top 10 unprompted most mentioned programs as ‘doing a very good job’ (33 per cent), increasing its lead over Woolworths everyday rewards (13 per cent). Qantas Frequent Flyer remained in third place since the first study in 2013.
  • The banks are getting it right: Of 25 randomly selected loyalty programs by the report authors, ANZ Rewards (51 per cent) and Westpac Altitude Rewards (50 per cent) were the top two programs respondents rated as excellent.
  • Don’t ditch the card: 67 per cent of members still prefer a traditional loyalty card while only 10 per cent prefer a mobile app to interact with a program.

“We found this one of the most surprising findings of all,” said Noble. “It goes to show that getting the card into a person’s wallet or purse is a critical piece of brand real estate and connection.”

When it comes to changes in benefits that members want, money still matters, with the top program benefit being immediate price discounts, followed by redeemable points-based programs. In addition, members showed an increased preference for exclusive offers (moving from fourth place to third).

The report also reveals members want to be rewarded for interacting with brands, with 53 per cent indicating they want to be rewarded for answering surveys and 46 per cent for opening emails.

“While this is a good report card for loyalty programs, consumers are more selective with their programs so brands need to work hard to retain that purse position,” Posner said. “Programs that are simple, keep cash-based rewards and exclusive offers in the mix and more opportunities to earn will continue to motivate members’ loyalty,” he said.

The full 70 page report is available at theloyaltypoint.com.au.

*Active means a member has used their card/membership in the last 12 months.

Please login with linkedin to comment

australian country Jamie Oliver Tommy and Meshel UM Melbourne universal magazines Virgin Mobile Australia

Latest News

The Inspired Unemployed Launch Their Own Podcast Via Spotify
  • Media

The Inspired Unemployed Launch Their Own Podcast Via Spotify

The Inspired Unemployed are launching a Spotify Original podcast, giving Australians even more insight into the larrikin’s unexpected fame and adventures. Commissioned by and only available on Spotify, the first ever podcast from the duo will bring a whole new dimension to the adventures of Matt and Jack, two best mates who still can’t quite […]

Diversity Is Good For The Bottom Line, So Why Isn’t Anyone Listening?
  • Opinion

Diversity Is Good For The Bottom Line, So Why Isn’t Anyone Listening?

In this guest post, Garth Williamson (main photo), country manager ANZ at Shutterstock, says all the evidence is in for a more inclusive workplace, but asks why are so many still shunning the idea? The evidence is clear; inclusive marketing increases brand reach, consumer engagement and drives customer brand advocacy. And yet, few brands are […]

Opinion

by B&T Magazine

B&T Magazine
PHOTOGRAPH BY NIGEL WRIGHT. 
WRIGHTPHOTO1@MAC.COM

THE MASKED SINGER S3. EP5

THIS PICTURE SHOWS: EPISODE 5 REVEAL…MAHALIA BARNES















.
  • Media

Tuesday TV Wrap: Masked Singer Reveal Falls From Monday As Pavlova Is Uncovered

The Masked Singer’s big reveal saw a slight drop off in audience from its Monday night episode, netting an average of 654,000 viewers. That’s a decrease of 49,000 from the previous night where, as you are sure to remember, the dancing pinata was revealed to be Lote Tuqiri. Last night was the reveal of a […]

by B&T Magazine

B&T Magazine
Ray White Goes In-House For New “Proudly” Campaign Just In Time For Spring Selling Season
  • Campaigns

Ray White Goes In-House For New “Proudly” Campaign Just In Time For Spring Selling Season

Australasia’s largest real estate agency has released its biggest brand campaign ever that was all done in-house. The spring campaign, “Proudly Ray White”, was created to help service the more than 730 Australian offices under the leading group’s umbrella. Spearheaded by Ray White marketing manager Todd Alexander and brand manager David Williamson, the campaign was […]

Channel 7 Reporter Attacked With “Urine” While Reporting!
  • Media

Channel 7 Reporter Attacked With “Urine” While Reporting!

Channel 7 reporter, Paul Dowlsey had an energy drink thrown at him and sprayed with what he thinks was urine, while trying to cover the tradie protest over mandatory vaccines in Melbourne.  Protestors, many donned in the signature tradie uniform of neon yellows and oranges, took to the streets in Melbourne yesterday. Hundreds marched through […]

by B&T Magazine

B&T Magazine
JCDecaux Unveils Mass Digitisation Plans After Snaring Huge Sydney Trains Advertising Contract
  • Advertising
  • Media

JCDecaux Unveils Mass Digitisation Plans After Snaring Huge Sydney Trains Advertising Contract

JCDecaux has announces the successful outcome of one of the largest Out-of-Home advertising contracts in Australia, as Sydney Trains appoints the company as its main advertising partner across the concourses and platforms of train stations for a term of up to ten years. The company, still smarting from relinquishing the City of Sydney contract to […]

The Lab Expands Executive Team With Three Promotions
  • Marketing

The Lab Expands Executive Team With Three Promotions

Leading cultural insights and strategy company The Lab today announced the promotion of three senior staff members to executive positions in its Melbourne and Sydney offices. The promotions follow strong growth for The Lab, with the addition of new clients and the launch of its innovative new artificial intelligence and machine learning division, Lab AI, […]

Booktopia’s Alex Huntley On Partnering With SaaS Platform Freshworks And Tackling The Pandemic
  • Marketing

Booktopia’s Alex Huntley On Partnering With SaaS Platform Freshworks And Tackling The Pandemic

Alex Huntley, Booktopia’s head of customer experience, recently appeared at software company Freshworks’ recent digital CX summit RE:SOLVE. During the summit, Huntley shared his thoughts on future-proofing customer service architecture.Huntley sat down with B&T to discuss Booktopia’s partnership with Freshworks and how it has helped their platform develop. B&T: Why did Booktopia first decide to partner […]

Nestlé Oceania Adds The Edison Agency To Strategic Design Roster
  • Marketing

Nestlé Oceania Adds The Edison Agency To Strategic Design Roster

The Edison Agency has made four new appointments in its Sydney office to service the continued growth across key account The Arnott’s Group and the recent appointment to Nestlé Oceania’s strategic packaging design roster. Over the past 12 months, the culmination of strategic and creative work across the Uncle Toby’s brand and continued growth of […]

SCA Launches Smart Speaker Experience Tom & Olly’s Guide To Lockdown
  • Media

SCA Launches Smart Speaker Experience Tom & Olly’s Guide To Lockdown

SCA has announced a new smart speaker experience for the Hit Network, with Tom and Olly’s Guide to Lockdown. A voice-activated way to get inspiration and information on fun activities that can be done at home, the guide is curated to appeal to a wide audience. Smart speaker users will find a range of ideas […]

IPG’s Reprise Appoints New Chief Product Officer & GM, Client & Commercial
  • Marketing

IPG’s Reprise Appoints New Chief Product Officer & GM, Client & Commercial

Reprise Australia CEO Maria Grivas has announced two new senior positions at the digitally-led performance marketing business that is part of Mediabrands Australia. The appointments are Grivas’ most prominent steps since taking her role in June this year. “At Reprise our mission is to help brands build and accelerate customer flow,” said Grivas. “These new […]

QMS’ Jemma Enright Talks The Company’s Plans For The City Of Sydney’s $300M Outdoor
  • Media

QMS’ Jemma Enright Talks The Company’s Plans For The City Of Sydney’s $300M Outdoor

Back in June 2020, QMS pulled off a major coup, snaring the City of Sydney’s outdoor assets away from rival JCDeceaux in a 10 year deal reported to be worth $300 million. COVID has made the changeover and erection of new street furniture challenging, but here B&T chats with Jemma Enright who joined the business […]

by B&T Magazine

B&T Magazine
Two M&C Saatchi Creatives Talk Making Art To Stay Fresh
  • Opinion

Two M&C Saatchi Creatives Talk Making Art To Stay Fresh

M&C Saatchi creatives Sam Rowlands and Jason Leigh talk about their personal creative pursuits, and how it informs their advertising. Then they decided that, as they hadn’t seen each other in a long time, they’d prefer to interview each other… Sam Rowlands — art director/painter/sculptor/fashion designer (as interviewed by Jason Leigh) Sam forgot about our […]

Opinion

by B&T Magazine

B&T Magazine