For love or MONEY? - Australian Marketing Institute

Transcription

For love
or MONEY?
2013 Consumer
Study into Australian
Loyalty Programs
1
a
Welcome to the
first Australian
research study
into consumers’
relationships with
loyalty programs.
Contents
1.0 Introduction1
2.0 Executive Summary
3
3.0 Research methodology and profile of participants
7
4.0 Findings in detail
4.1 Reach of loyalty programs in Australia
4.2 Who loves loyalty programs?
4.3 Who is more actively interacting with loyalty programs?
4.4 What behaviour does the love of loyalty programs drive?
4.5 Where can loyalty programs improve?
4.6 For love or money? What features and benefits of loyalty programs do
consumers care about?
4.7 Who cares about which benefits?
4.8 The love of loyalty programs vs the benefits offered
4.9 Which communication channels do they love?
4.10 Which loyalty programs do they care about? 4.11 Consumers’ comments about loyalty programs – the good and not so good
9
9
11
15
19
25
5.0 Behind the research – the people who love loyalty programs
47
29
37
39
41
43
45
1.0
Introduction
1
Thank you for your interest in the Australian
consumer’s point of view on loyalty programs.
Directivity and Citrus together with
First Point Research and Consulting are
pleased to present what we believe is
the first research study into consumer
relationships with loyalty programs in
Australia.
Loyalty programs, frequent buyer programs, VIP
clubs, discount rewards and any combination
of these are continuing to clutter the Australian
market and scream for the attention of their
members.
There are many programs in the market and
brands continue to evaluate why they should have
a program (if they don’t) or how to continuously
improve (if they do). While there have been
a number of overseas research studies, we
could not find any in Australia that provided a
consumer’s perspective on loyalty programs they
engage in – or don’t.
With this in mind, we wanted to get to the heart
of how consumers in Australia really feel about
loyalty programs and specifically those they are
members of.
We sought to find out if being a member
of a loyalty program was for the love (of
the brand) or for the money (rewards). We
wanted to find out if being a member made
them care enough to:
1
Influence their buying behaviour.
2
Be more loyal to the brand whose program
they were a member of.
Whether you are planning to implement a loyalty
program or already have a program, we are
confident you will find insights that will make you
think more about how your program can be even
more relevant and valuable to your members, and
therefore more profitable for your business.
Please read on and find out if Australian
consumers really care about the loyalty programs
they are a member of.
This research study conducted with more
than 1,000 consumers answers these two
questions and explores:
11.
the penetration of loyalty programs with
some demographic differences
22.
who is more actively involved with their
programs
33.
their view on the value that programs offer
44.
what’s important to them with regard to
program structures, features and benefits
and
55.
communication preferences
Adam Posner
CEO
Directivity
Pete Noble
CEO
Citrus
2
2.0
Executive
Summary
DO LOYALTY
PROGRAMS
INFLUENCE
BUYING
BEHAVIOUR
AND LOYALTY?
3
Let’s get to the point.
Firstly, loyalty programs do influence buying behaviour – consumers buy more from companies whose
program they are a member of and they choose to buy from companies with a program vs those without.
However, loyalty programs do not equal customer loyalty.
80%
buy more from
companies whose
programs they
are a member of
55% will choose a product/company with a
loyalty program over one without
46%
feel more loyal
to a brand
because of a
loyalty program
Buying behaviour
Australian consumers certainly do buy more from
companies whose programs they are a member of.
In fact, 80% buy more.
They also tend to buy from companies who have a
loyalty program versus those who don’t. When faced
with choosing two similar products/companies – one
with a loyalty program and one without – 55% of
consumers tend buy from the one that has a loyalty
program.
So if you are facing a competitive environment
and the behaviour you want is for your
customers to choose you over a competitor,
then a loyalty program does influence the
choice of who they buy from.
Feeling of loyalty
This means if you don’t have a program, you should
seriously consider one.
It’s our view that loyalty programs on their own do
not engender loyalty, as there are many factors
that influence loyalty, not just a program.
If you do have a program, then dig a bit deeper into
this research and see what customers value from
their loyalty programs and see if you match up.
As for ‘feeling more loyal to a brand whose program
they are member of’ - less than half (46%) tend to
feel more loyal. This is a close call on whether a
loyalty program actually drives a feeling of loyalty.
Therefore loyalty programs do not equal customer
loyalty.
4
Key insights.
crowded - find your 1 It’s
crowd.
Loyalty programs are well established in the
Australian shopping community, with 88% of
consumers over the age of 16 being members of
a loyalty program. So you need to really find a way
through the crowd and be valuable to your crowd.
There are some loyalty lovers out there, with 11% of
consumers being members of more than 10 loyalty
programs.
88%
11%
belong to a
loyalty
program
12%
belong to more
than 10 loyalty
programs
don’t belong
to a loyalty
program
all customers
2 Not
are equal.
Men are members of fewer programs (average 3)
but more active with the memberships, presenting
their card at the point of purchase or actively
looking to accrue points. Women are members of
more programs (average 5) and tend to spread their
spend across more programs. Keep an eye on older
customers (55+) as they tend to buy more, choose
from brands that have a program, but believe more
strongly that programs don’t provide any real value.
NO. OF CARDS
5
because you have a loyalty program, doesn’t
3 Just
mean it’s working.
Only 41% of consumers feel that loyalty programs have improved in recent years and offer good
benefits to members. This presents a great opportunity for loyalty programs to strive to be more
valuable. Program features and benefits that consumers prefer are still financial, although ‘surprise
and delight’ are also well regarded.
4 Show me the money.
Financial benefits are still the most sought after
program benefit, with 80% of consumers seeking
immediate price discounts when making purchases.
Points-based programs that enable members to
redeem points for vouchers or other rewards are
also important (77%). Exclusive offers (64%) and
access to more rewards based on spend (62%)
also rank highly with consumers.
Surprise!
!
e
s
i
r
p
r
u
S
37
%
feel the
discount
is most
important
80%
81
%
prefer
personalised
email
prefer
direct mail
<25slike personalised
letters
5 Talk to me.
77
%
feel the
points for
rewards
are more
important
The key to a
successful
loyalty
program
Surprising members with unexpected rewards are
highly sought after. Programs which offer ‘surprise
and delight’ benefits will go a long way to overcoming
consumers’ belief that programs don’t offer any real
value.
At 81%, personalised email is by far the most
preferred channel to communicate with members,
followed by direct mail (37%). Mail particularly
appeals to tech-savvy consumers under 25 due
to the novelty factor and the association of ‘good
news’ rather than older members who are likely to
associate letters with bills!
A winning program is one with multiple emotional and transactional benefits.
Consumers who ‘tend to feel more loyal to the company/brand when I am a member of their loyalty
program’ consistently place higher importance (than the average consumer) on ALL listed loyalty
program features - from transactional to emotional.
Programs with multiple financial and emotional benefits in their program framework are better placed
to build genuine loyalty with their members.
6
3.0
Research
methodology
and profile of
participants
WHO GAVE
THEIR POINT
OF VIEW?
7
Research
method
and profile
of research
participants.
The research was conducted
independently by First Point Research
and Consulting in February 2013
through an online panel of Australian
consumers, men and women 16 years+.
The research was structured to gain some
quantitative results with comparative analysis as
well as free form questions to gain a sentiment
of how consumers feel towards the programs
they are a member of and how programs should
improve.
Programs were named - some shamed, some
cheered. The richness of the free-form responses
is enlightening.
The total sample of N=1010, provides a margin
of error of +/- 3% at a 95% level of confidence.
Broad quotas were set for age and gender.
Gender
Location
52%
part of
NSW
18
%
48%
10
%
9
%
35
%
25
%
Marital Status
3
%
Age
29%
57% Married
32% Single
9% Widowed/divorced/
separated
2% Prefer not to say
Dependent children
21%
16%
17%
9%
16-24
years
8%
25-34
years
35-44
years
45-54
years
55-64
years
65+
years
Household income
26%
68% No dependent children
18%
15%
17%
15%
9%
32% Dependent children
Under $50,000 $75,000- $100,000 $150,000 Refused
$50,000 - $74,999 $99,999 - $149,999 or more to say
8
4.0
Findings in
detail
4.1 REACH
OF LOYALTY
PROGRAMS
IN AUSTRALIA
9
Loyalty
programs in
Australia reach
far and wide.
Not too surprising, however we now
have a benchmark.
88
of Australian
%
consumers over
the age of 16 are
members of a
loyalty program.
Total sample (N = 1010)
Yes
No
10
4.0
Findings in
detail
4.2 WHO LOVES
LOYALTY
PROGRAMS?
11
93%
82%
93
of women are much
%
more likely to be
members of a loyalty
program than men.
Warning!
Female (N = 525)
Male (N = 485)
Don’t let this mislead you! Further in the report findings
reveal that men are more actively involved with programs
they are a member of.
12
CHILDREN:
92
%
of people with dependent children are members
of at least one loyalty program which for those
families looking for savings or rewards, loyalty
programs make sense.
AGE:
There is a fairly even spread of age groups who participate in
loyalty programs.
83%
88%
91%
88%
85%
85%
16-24
years
25-34
years
35-44
years
45-54
years
55-64
years
65+
years
92%
13
How many programs
are Australians a
member of?
Men are members of about 3 programs
on average and women closer to 5
programs.
3.3
(Again, don’t let the volume of programs
mislead you, as the level of activity in their
programs is more enlightening).
4.7
loyalty
programs
loyalty
programs
Clutter?
Male (N = 396)
Interestingly, 11% of all respondents are
members of 10 or more programs.
Perhaps our wallets/purses are not as cluttered
as you may think, which still presents an
opportunity for loyalty marketers.
Female (N = 488)
14
4.0
Findings in
detail
4.3 WHO
IS MORE
ACTIVELY
INTERACTING
WITH LOYALTY
PROGRAMS?
15
Active = “you present
your card or membership
number when making
purchases”.
45%
I try to keep my card handy.
I am cross when I don’t get
to add points because I have
forgotten my card.
Female, 45-54yo, NSW
Some don’t engage with their
members as much as others &
therefore I tend to not use those
brands so much.
Female, 25-34yo, NSW
30%
15%
9%
1%
Use most of
them
Use about half of
them
Use not many of
them
Use none of
them
ACTIVE:
Only
45
%
of consumers are active
in all of their programs,
by presenting their
cards or membership
number when making
purchases.
Use all of them
Base: Members of a loyalty program (N=884)
If active = engaged, then there is certainly room to improve.
Active = engaged?
It’s fair to say that if your program is one of a few in your category, then it’s clear that
you need to evaluate how to get your members to be ACTIVE in yours. More insights on
how to do that follows.
16
Men are more
committed to
their loyalty
programs.
Nearly everyone has a loyalty programme – and that diminishes the value of what they are for. You
seem to be treated liked an alien if you are not a member and use a business that has one.”
35-44 YO male, NSW
45%
49%
41%
30%
29%
31%
15%
12%
18%
9%
8%
9%
1%
2%
1%
MEN:
49
are active in all
% ofof men
their loyalty programs
vs 41% of women.
With fewer cards, its clear that men are more
deeply committed to the loyalty programs they
belong to than women.
Use all of them
Total
17
Men
Women
Use most of
them
Use about half of
them
Use not many of
them
Use none of
them
We ignored Flybuys for many years when it took a huge amount of expenditure to get any benefit.
Now, combined with fuel vouchers and Frequent Flyer points on the credit card, shopping at Flybuys
retailers makes sense. So keep the rewards at an achievable and worthwhile level.
Male, 55-64yo, QLD
Women are
less engaged
with their loyalty
programs.
Please remember that Loyalty programs are a two-way street. It can’t just be about collecting
information about the way a person shops – there needs to be a benefit for the cardholder as well.”
35-44 YO female, NSW
45%
49%
41%
15%
12%
18%
30%
29%
31%
9%
8%
9%
1%
2%
1%
WOMEN:
While women belong to more loyalty
programs than men, only
of women are active
in all of the loyalty
programs they belong to.
41
%
28
%
of women are active in
half or less than half of
the loyalty programs
they are members of. As the primary shopper in most cases, women
are exposed to more opportunities for loyalty
programs, which in turn motivates women
to spread their loyalty across those various
programs.
In competitive categories, the program really
needs to differentiate itself to gain a woman’s
total commitment.
Use all of them
Use most of
them
Use about half of
them
Use not many of
them
Use none of
them
18
4.0
Findings in
detail
4.4 WHAT
BEHAVIOUR
DOES THE LOVE
OF LOYALTY
PROGRAMS
DRIVE?
19
They buy more.
Consumers who are a member of a
loyalty program do buy more.
BUY MORE:
80
buy more
% offromconsumers
companies whose
program they are a
member of.
I like it when they give you 10% discount if
you spend over $50 and it is taken off your
grocery bill immediately. When that happens I
will make a special effort to spend $50 (which
is more than my regular weekly spend).”
If you are developing a loyalty
program, here is one very good reason
for a program – consumers buy more.
% Strongly Agree / Agree
I tend to buy more from the companies whose program I
am a member of
80%
When choosing between two similar products/companies,
one who has a loyalty program and one who does not, I
tend to buy from the one that has a loyalty program.
55%
I tend to feel more loyal to the company/brand when I am
a member of their program
46%
Loyalty programs have improved a lot in recent years and
tend to offer good benefits to members
41%
40%
Most loyalty programs don’t offer me any real value
Most loyalty programs just don’t seem to understand how
to communicate appropriately with their members
27%
The more that customers are rewarded, the more likely they are to shop at a particular store. If retail
sales are in such a slump, retailers have a perfect opportunity to offer loyal customers incentive to
spend.” 25-34 YO female, Victoria
20
They choose
to buy from the
company with a
program.
CHOOSING:
55
%
of consumers when faced with choosing two similar products/
companies, one who has a loyalty program and one who does
not, tend to buy from the one that has a loyalty program.
If your competitors have a loyalty program and you do not, good chance
you are losing business.
More than half of Australian consumers
tend to buy from companies who have a
loyalty program vs those that don’t.
am a member of
80%
55%
46%
41%
40%
Base: Members of a loyalty program (N = 884)
21
27%
Don’t create a program for the sake of it. Loyalty needs to be earned. While the benefits don’t have
to be big, they have to be in proportion to what the company does or sells. One free coffee in 10 is
generous. $10 off a $200 grocery bill is not.” 45-54 YO female, NSW
Consumers are not loyal
to a brand just because
they are a member of
their loyalty program.
FEELINGS OF LOYALTY:
only
46
%
of consumers strongly agree/agree that they
tend to feel more loyal to the company/brand
when they are a member of their loyalty program,
which leaves the rest who are neutral or do not
agree.
Loyalty programs do not equal customer loyalty.
Less than half feel more loyal to a brand when a member of their program.
am a member of
80%
55%
46%
41%
40%
Although it’s a close call on whether a loyalty program actually
drives loyalty, it’s our view that it does not as there many other
factors that influence loyalty, not just a program.
27%
As a pensioner on a limited income any kind or reward is a bonus but the
low rewards do not make me want to be loyal to the business.”
45-54 YO female QLD
22
A loyalty ‘card’ does not maketh a loyalty
program. Unless being a part of this program
entitles you to rewards, discounts, free gifts,
exclusive invitations or something special over
and above what other customers receive, I
have no incentive to give retailers all my details.
I am happy to give them this information for
sales and statistical analysis of purchasing,
however I deserve something in return.”
Female, 25-34 yo, Victoria
23
Which age groups care about
loyalty programs even more?
More mature Australians stand out.
When cross analysing the different age groups to
the behaviours and beliefs, some interesting and
significant differences were highlighted.
Total
N = 884
<35 years 35-54 years 55+ years
N = 338
N = 340
N = 206
am a member of
80%
77%
80%
85%
55
49
55
63
46%
46%
46%
48%
41%
41%
39%
45%
40%
41%
43%
54%
27%
31%
27%
22%
%
%
%
%
55 YO +
• tend to buy more than the rest
• choose more from those brands
who have a program
• believe more strongly that
programs don’t offer them any
real value
24
4.0
Findings in
detail
4.5 WHERE
CAN LOYALTY
PROGRAMS
IMPROVE?
25
Loyalty programs have
room to improve –
what a great opportunity.
IMPROVEMENT:
only
41
%
of consumers feel that loyalty programs have
improved in recent years and tend to offer
good benefits to members. There is certainly
room to improve.
am a member of
80%
55%
46%
41%
40%
27%
Flybuys is far and away the best loyalty program for me.... I get the most cash back from it. Millers give generous discounts. Video Ezy also have special
offers for members only, although they are spasmodic. Everyday Rewards is a disappointment - seems all you get is a fuel discount. I expect to be
contacted by stores with whom I have a card, yet Blooms, Noni B, Target, Adairs, Rockmans, bras N Things never contact me with product information.
To me, that’s a wasted opportunity for them. Female, 45-54yo, NSW
26
They can be
more valuable.
There are great opportunities for
loyalty programs to strive to be more
valuable to their members.
WHERE’S THE VALUE?
only
40
%
of consumers strongly agree/agree that loyalty programs don’t offer any
real value. 36% are neutral and 24% disagree, which means there are
more consumers who are either on the fence (ready to be proven that
there is value) and the rest who think they are getting value.
am a member of
80%
55%
46%
41%
40%
I have some cards that don’t do anything.
Needs to have a value to make it worth my
while.” 25-34 YO female, Victoria
27
27%
There are more insights into what
consumers love (what they value) about
loyalty programs further along in this report.
Programs with minimum number of
purchases before you earn points, rewards
programs where you need to pay annual
membership fees erode the value gained.”
28
4.0
Findings in
detail
4.6 FOR LOVE
OR MONEY?
WHAT FEATURES
AND BENEFITS
OF LOYALTY
PROGRAMS DO
CONSUMERS
CARE ABOUT?
29
It’s all about the money!
financial benefits are still highly sought after by consumers.
% Very important /
80%
Immediate price discounts when making purchases
Point based programs that allow members to redeem
‘points’ for vouchers, products or other rewards
77%
Surprise gifts or surprise rewards that arrive without you
making a redemption
67%
64%
Exclusive offers available to members only
Access to more rewards based on the more you spend
with the company
62%
Partnerships with other businesses/brands that can
increase the opportunity to accrue rewards or points
61%
Sending me information that is tailored and personal to
me
Updates on relevant news about the company and its
products or services
Different levels of reward based on different levels of
spending (eg Gold, Silver and Bronze membership tiers)
46%
37%
36%
It’s clear that members of loyalty programs are looking for the
hard benefits - especially financial, as a reward for their loyalty.
30
“Offering a change to go in a draw or lottery
is not a reward. Cash and decent discounts
have value. Most other offers have very little
value.” 35-44 YO male, NT
Offers that have an immediate discount
are better than non-tangible and confusing
schemes such as points.
16-24 YO male, Tasmania
Cash is king and all of these reward programs
offer a choice of cash or store vouchers so I
can choose what to buy are better.
35-44 YO male, NSW
31
Surprise! Surprise!
Share the love!
Surprising your loyalty members with rewards that are not expected, are highly sought after!
% Very important /
80%
77%
making a redemption
67%
64%
with the company
62%
61%
me
46%
37%
36%
32
There could be things given randomly from
time to time – eg: bonus points after shopping
or monetary voucher or just for being a
‘valued customer’. 45-54 YO female, VIC
I buy all my cosmetics and healthcare
products in this store and receive a loyalty
cheque in the mail which comes as a nice
surprise. 65-74 YO female, NSW
The (MYERone) gift cards are automatically sent
out, you don’t have to log on and ‘redeem’ anything
so it’s a nice surprise to open the letterbox and
have a gift card waiting.” 25 YO female, QLD
33
They also care about exclusivity and a lot more.
They also care about the love they get through exclusive offers for being a loyalty program member,
Access to more rewards based on their spend and more opportunities accrue rewards/points through partners.
% Very important /
80%
77%
making a redemption
67%
64%
with the company
62%
61%
me
46%
37%
36%
34
They DON’T care that much about the company
and tiered rewards are not important.
Consumers are NOT that interested in news about your company, they are more focused on WIIFM.
% Very important /
80%
77%
making a redemption
67%
64%
with the company
62%
61%
me
46%
37%
36%
Only a third of consumers feel that tiered rewards are important.
35
Levels (bronze, silver and gold) are no
longer relevant. All members should be
treated as Gold.” 35-44 YO male, QLD
36
4.0
Findings in
detail
4.7 WHO CARES
ABOUT WHICH
BENEFITS
37
Consumers over 55 are more
focused on transactional benefits.
They also place significantly
greater importance on the ongoing
communications from loyalty programs.
Total
N = 884
<35 years 35-54 years 55+ years
N = 338
N = 340
N = 206
80
77
80
85
77%
72%
78%
84%
making a redemption
67%
68%
69%
64%
64%
64%
63%
64%
with the company
62%
62%
61%
63%
61%
60%
61%
63%
me
46%
41%
49%
51%
37%
33%
36%
43%
36%
37%
35%
36%
%
%
%
%
I can use the points on other things and the
points are valuable.
Male, 65-74 yo, Victoria, member of QFF and
everyday rewards
The immediate discount at the register is a
great incentive to shop.
Female, 65-74 yo, Victoria, member of
Spotlight
Good communication and excellent rewards
system when compared to other similar
competitors. Great recognition of customers.
Male, 55-64 yo, Tasmania, member of Virgin’s
Velocity program
38
4.0
Findings in
detail
4.8 THE LOVE
OF LOYALTY
PROGRAMS VS
THE BENEFITS
OFFERED
39
Cross analysing how they feel to
which benefits are important.
Programs which have a core element of
‘surprise and delight’ will go a long way
to overcome consumers’ belief (74%) that
programs do not offer any real value.
Consumers who feel that ‘loyalty programs don’t
offer any real value’ are far more likely to place high
importance on ‘surprise gifts or surprise rewards
that arrive without you making a redemption’.
Total
N = 884
“Most loyalty
programs
don’t offer me
any real value”
N = 338
“I tend to feel more
loyal to companies/
brands when I am
a member of their
program”
N = 340
80%
84%
88%
77%
78%
87%
making a redemption
67%
74%
75%
64%
66%
76%
with the company
62%
60%
77%
61%
62%
78%
me
46%
45%
58%
37%
36%
49%
36%
36%
47%
Loyalty also appears to be more likely
when programs implement a multifaceted approach.
Consumers who ‘tend to feel more loyal to the
company/brand when I am a member of their
programs’ consistently place higher importance
than the average consumer on ALL listed loyalty
program benefits (transactional and emotional
rewards).
This suggests that those programs with multiple
financial and emotional benefits in their program
framework are better placed to build genuine
loyalty with their members.
40
4.0
Findings in
detail
4.9 WHICH
COMMUNICATION
CHANNELS DO
THEY LOVE?
Email then mail.
EMAIL:
81
%
81%
Personalised
email
(Woolworths)
emails are fantastic
and makes you
feel updated as
a member. Their
communication is
the best out of the
clubs. 35-44 YO
female, QLD
of consumers prefer
personalised email.
37%
Personalised
letter
20%
Text Message/
SMS
10%
Facebook
alert or update
Base: Members of a loyalty program (N=884). Option to select more than one channel
provided in this survey question.
41
Older = email vs
younger = mail.
From my own experiences, personalised
emails are completely ignored. Contacting by
other means would draw more attention.
16-24 YO male, VIC
Several differences can be observed
across the age groups:
Personalised email is favoured far more by
consumers aged 45+, relative to younger
consumers.
Personalised letters are very appealing to
consumers under 25.
The insight here is that old style letters are of
more novel value to younger consumers and are
more likely to be associated with ‘good news’ as
opposed to older consumers who are more likely
to associate letters with bills!
This highlights a little used opportunity to engage
with younger consumers via mail.
Text message or SMS is considered to be
a good option for engagement amongst
the Under 35s in particular.
Similarly, Facebook alerts and updates are
far more appealing to the Under 35s.
Total
N = 884
<24 years
N = 338
25-34 years 35-44 years 45-54 years
N = 338
N = 338
N = 340
55+ years
N = 206
Personalised
email
81%
69%
77%
78%
87%
89%
Personalised
letter
37%
43%
36%
38%
39%
34%
Text message
/ SMS
20%
34%
28%
17%
18%
9%
Facebook alert
or update
10%
16%
14%
12%
7%
4%
The theme overall is that younger consumers are likely to be open to engaging in a variety of different
platforms, whereas consumers over 45 years have a distinct preference for email.
42
4.0
Findings in
detail
4.10 WHICH
LOYALTY
PROGRAMS
DO THEY CARE
ABOUT?
43
Programs and brands
mentioned.
843 consumers commented on the programs they are a
member of.
Accor
EB Games
National Pharmacy
Airmiles
Emirates
Oxford
AliBaba
Event Cinema
Pet Barn
Altitude Rewards
Everyday rewards
Priceline
Amex
Fusion
QFF
Amcal
Flybuys
Rewards Central
ANZ Rewards
Gloria Jeans
Rivers
Autograph
Horseland
Rockmans
Athletes Foot
Hoyts
Snowys Outdoors
Coffee Club
Hudsons
Sportscraft VIP
BB’s
IGA
Spotlight
Betts Kids
IKEA family
Sumo Salad
Boost Juice
Jeans West
Supabarn
Brumbys
Katies
Terry White
Choice Hotels
Millers
Toys r Us
CBA credit card
Mychemist
Village
Crown Signature
MYERone
Virgin
Club
Muffin Break
Programs that got the nod as
doing a ‘good job’.
The most mentioned loyalty programs as doing a “particularly good job” are:
37%
Flybuys / Coles
22%
Everyday Rewards, Woolworths
11%
Qantas
6%
5%
MYERone
Priceline
Virgin
CBA Credit Card
IGA
Millers
Rewards Central
Spotlight
All Others
2%
1%
1%
1%
1%
1%
<1%
None
The fact that 78% of
respondents, without being
given a list of options, provided
the name of a program they
considered to be doing a
‘good job’, suggests that the
vast majority of Australians do
actually see merit in joining a
loyalty program.
12%
44
4.0
Findings in
detail
4.11
CONSUMERS’
COMMENTS
ABOUT
LOYALTY
PROGRAMS
843 customers gave their point of view.
A few of the good.
Priceline
They are constantly in contact with me, letting
me know what’s on sale and what’s going to
be available and what competitions, bonus
buys and offers that members can utilise.
Keeping the brand in my mind by being in
touch all the time.
Female, 24-34 years
Sportscraft VIP program
I think it’s quite good value that when you sign
in online as a VIP you get instant discount on
all items on the website. They also have lots
of sales online just for VIP members. I think it
was also great that the sign up was so simple
and could also be done online.
Female, 16-24 years
MYERone
I like that you don’t need your card to
redeem points in store (via app is great) I
have received vouchers from them - tangible
rewards for spending. It is easy to collect
points as they sell a broad range of products.
Also have had Myer VIP shopping nights as a
reward to customers.
Female, 25-34 years
Millers
Millers is great because not only do they have
cheap clothes, they give you discounts off
sale items too..
Female, 45-64 years
Everyday rewards
flybuys
Because they update regularly, send
emails with my points balance and discount
vouchers.
Female, 25-34 years
45
I like that it can be linked to my Qantas FF
program. I also like that you can accrue points
simply by purchasing your everyday items,
you don’t need to go out and buy something
that you may never use to accrue points.
Recently, they sent me a keychain to use
as well as my card, this is really handy as
sometimes you don’t have your purse with you,
but you almost always have your keys.
Female, 25-35 years
A few of the NOT so good.
Just make the rewards worth staying with you
for. Don’t make the customer need to spend
millions to redeem chicken feed.”
45-54 yo male, QLD
Points that expire are one of the biggest turn
offs. Paying to belong to a loyalty program...
I’m already spending my money at your
business and you expect me to pay you to
belong to your program too??
45-54yo female, SA
Please don’t make the programs too
complicated or time intensive to gain rewards.
And reward points that expire are a waste of
time and misleading.
16-24 YO female, QLD
Some rewards programs are designed for
big spenders in the higher income brackets.
People with low funds, small spenders can
never hope to accrue enough points etc. to
benefit from the program.
55-64 yo female SA
I do feel negatively when asked to pay to be
a part of a loyalty program. I did pay $10 I
think to join Bras N Things, but I have to buy
2 bras a year to benefit, so don’t think I will
bother again. I expect a loyalty program to
be free, and to actually have a benefit to me.
I think Just Cuts, for example, is fairly lame,
as they keep no records of me on their pc,
so if I forgot to offer up my discount card,
then it’s as if I never got a haircut. It’s like they
know people will forget, so one never earns
that free hair cut. I don’t think I have ever
benefited from some of the cards I have, so
why do they even bother to have them?
45-54 yo female NSW
I just think loyalty programs are all about the
company selling more. It’s not about rewarding
the customers as it’s really aimed at people
who are big buyers.
45-54 YO female, WA.
46
5.0
Behind the
research –
THE PEOPLE
WHO LOVE
LOYALTY
PROGRAMS
47
Directivity was established in 2007 to provide
customer acquisition and loyalty strategies
for organisations in financial services, energy,
tourism, manufacturing, education, IT and retail.
Citrus is a specialist digital agency focused on
growing the value of the relationship between
brands and their consumers through key digital
touch points.
Adam Posner (CEO) has been involved in a range
of loyalty programs from large retail programs
such as the new flybuys program launched in
2012 as well as the development of self-funding
financial modelling for loyalty programs for
pharmacy and large accommodation networks.
With more than 15 years’ experience and a strong
heritage in retail, Citrus has delivered award
winning solutions to leading brands including
Sportsgirl, Metalicus, Review, adidas, Coopers,
Samsonite, TaylorMade, John Frieda, and the
Victoria Racing Club.
Adam’s obsession with loyalty drove him to initiate
this research study as the first of its kind that digs
deep to understand what Australian consumers
really feel about loyalty programs.
Our full service digital capabilities enable us
to build and enhance consumer relationships
through digital communications and loyalty
programs across web, email, mobile and social.
Adam Posner
CEO
Directivity
Pete Noble
CEO
Citrus
Adam is also the author of the practical book
on loyalty ‘Give-back to Get-back - 9 steps to a
profitable loyalty program’.
48
Directivity
t. 0433 818190
e. [email protected]
Level 7, 390 St Kilda Road
Melbourne
Victoria Australia 3004
www.directivity.com.au
Citrus
t. +613 9681 5333
e. [email protected]
Level 8, 100 Albert Road
South Melbourne
Victoria Australia 3205
www.citrus.com.au
49

For love or MONEY? - Australian Marketing Institute

Transcription

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