loyalty programs entice shoppers
Happy woman at the supermarket holding a rewards card and looking at the camera smiling. the design on the card is own design.


Over half of Australians (57 per cent) say they will spend more with a retailer who offers a loyalty program over one without, new research has revealed.

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

Megan Treston, director – retailer services at Neilsen said a loyalty program is away for retailers to stand out in a crowded market and entice customers to shop with them.

“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,” she said.

Monetary incentives are preferred by consumers, with product discounts, free products, and rebates or cash back offers at the top of the list. Frequent flyer points ranked as the highest non-monetary benefit.

In-store and online

More than two-thirds (67 per cent) of Australian loyalty program participants also reported that an omnichannel approach—where they can earn rewards regardless of whether a purchase was made in-store or online—was appealing.

“Flexibility is very important to Australian shoppers [and they] now have access to an omnichannel experience,” said Treston. “This means they have access to bricks and mortar stores, online shopping, telephone sales and more.”

Personalisation is also important when it comes to loyalty schemes as it helps retailers create a feeling of connection with customers.

“Tailoring loyalty benefits for specific consumers, and using loyalty program engagement vehicles—be it via an app, email, or in-store interaction—all allow retailers to personalise the loyalty program so that it’s not just a discount vehicle,” said Treston.

“Done well, loyalty programs can also help drive more frequent visits and heavier purchasing for retailers.”


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