Business Lessons: What we can Learn from Australia’s Store Loyalty Programs

The recently completed Roy Morgan Research revealed the latest membership percentages of various Australian Loyalty Programs.

Some of the programs studied include FlyBuys, Woolworths Rewards, Priceline Sister Club, MyerOne, My Dan Murphy’s, Costco, My IGA, Miller’s Rewards, and a host of other loyalty programs out there. The study revealed that more than 20% of Australian citizens were members of the MyerOne program. There were also 18% of members of Priceline’s Sister Club, another great loyalty program in the country. Just because a consumer was a member of a particular program, it doesn’t mean that they used the membership on a regular basis.


A large membership is a plus point for any store’s customer loyalty program. But if most of the members are inactive and don’t shop often at the specific store, it cannot be considered a good thing for the store. This was reiterated by Norman Morris, the communications director of Roy Morgan Research.


In fact, Woolworths Rewards is a great example of a very popular loyalty program on the market. The members of this loyalty program are the majority of customers at Woolworths and BWS. The latest statistics reveal that more than 78% of its members use the membership card at the supermarket checkout. Also, more than 61% of members use their loyalty cards at Woolworths’ subsidiary – BWS. In fact, some would argue that the popularity of these schemes and the loyalty they bring has helped the likes of Woolworths and its subsidiaries in troubled times and helped keep afloat the WOW share price.


In comparison, the MyerOne membership is used only by 55.2% of its members. More than 50% of Kmart consumers use the FlyBuys card at the checkout.


The research revealed that women made up a large percentage of the loyalty members. But the situation was different when it came to My Dan Murphy’s program where males made up the highest percentage.


In another marketing study conducted early this year, it was revealed that more than 82% of Australians (18 years or more) were enrolled in at least one loyalty program. The average number of memberships was 3.9, which was only 3.8 in 2015.


The Loyalty Point conducted a study in 2016 called “For Love of Money.” This study revealed that consumers would usually leave a membership program if the program didn’t offer rewards or points fast enough. Most members were quite unhappy with certain programs changing their rewards and benefits over time.


Coles-Powered FlyBuys loyalty program has more than 45% of customers carrying its membership card. In fact, Qantas Frequent Flyer, Coles/FlyBuys, and Woolworths Rewards are among the loyalty programs in Australia.


Consumer Group Choice advises all consumers out there to remember what they bring to the table and what the retailer find interesting in it, particularly when it comes to your data. In fact, when a consumer signs up, the company will record your age, household size, gender, purchasing habits, and address. They will also check how much the consumer spends and what he/she buys. They may also consider how full your basket is.


Mr. Morris states that it is quite reasonable for a retailer to rely on the consumer data offered by a large loyalty program. But such a program should be able to do something more than just providing data. In fact, if your rewards program makes it hard for the consumer to redeem their rewards, it cannot be considered a successful program.

Note: This is a guest post.

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