Battle of the loyalists

 

coles, down downAustralian consumers are most likely to recommend Coles FlyBuys to their friends, family and acquaintances over other loyalty cards.

The supermarket chain’s loyalty program is followed in popularity by rival Woolworths’ Everyday Rewards card.

Qantas Frequent Flyer comes in at third place, according to a new consumer loyalty report by Citrus and Directivity.

The Share the Love report found Australians between the ages of 25 and 34 are ditching loyalty programs at a greater rate than others.

Forty per cent of this age group said they’ve left a loyalty program in the last year, compared to just over 25 per cent of the general population.

Australian retailers mentioned in a positive light by the survey’s respondents include Petbarn, Myer, and Zarraffa’s.

“Just made a status update on Facebook when I was having a coffee at Zarraffa’s and I got it for free because I had used my card so many times before,” said one person.

The report found that Australians still have mixed feelings about sharing their data with brands and retailers.

Some said they were “happy to share” data, but others say they’re “very dubious”, due to a fear of spam or privacy invasion.

Adam Posner, CEO of Directivity, told AdNews that the most common reason for ditching loyalty cards is a lack of rewards.

“Your program is your brand and if people are leaving because the program isn’t valuable to them, or doesn’t offer exciting rewards, that’s a real problem,” he said.

The report found that ‘shareability’ – the ability to share benefits with friends, family or a charity – was one influential factor on the success of loyalty programs.

Comments

1 comment

  1. Brett Holland posted on February 11, 2014

    Great study. Can't wait to read through the whole thing. I would argue that a loyalty program must be timely and relevant for the consumer. But, more importantly, it must consistently drive increased sales conversions at higher margins to sustain the retailer's ongoing investment in it.

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