A new report from the Australian Loyalty Association in partnership with Power Retail, has exposed a significant challenge for the retail sector: nearly 60% of Aussies are unwilling to share their data with retailers, signalling a general distrust in the handling of their personal data.
Drawn from a survey of over 2,800 engaged shoppers, and exploring 44 retail-specific loyalty programs, the 40-page Loyalty Insights Report, released on Wednesday 19th June 2024, highlights what Australian consumers want most from loyalty programs and what retailers need to do to gain and maintain the trust and loyalty of their customers.
With spending on everyday essentials increasing by 5.4% last year, shoppers are on the lookout for any opportunity to save money, with one respondent saying, “Groceries are a big expense and being rewarded for buying products that are a basic need is helpful,” and another stating “All I care about is cash back or discount incentives, not special offers or exclusive deals”.
The report also revealed that there is a huge opportunity for retailers to reward customer loyalty and invest in long-term customer relationships by understanding and being adaptable to their everchanging needs.
When it came to generational preferences, surprisingly, the report found that 67% of Gen Z respondents believed that loyalty programs provided a high level of value. This generation also had the highest engagement with loyalty programs out of any generation surveyed. Respondents in this age bracket demonstrated a greater liking for tiered benefit programs, based on spending, indicating that gamification can be an influencing factor in consumers of that age engaging with a brand loyalty program. Said one shopper, “These types of programs give great value for money, both in discounts, points earned, and special offers and have unique offers that reward you for consistent purchases.”
Sarah Richardson, Chair of the Australian Loyalty Association, who run the 2024 Asia Pacific Loyalty Conference, 2025 Asia Pacific Loyalty Awards and Customer Loyalty Education Courses says, ”Retailers should be focussing on developing loyalty programs that stand out in this highly competitive market. Ensuring their programs have a unique appeal, making it easy to join and interact with, and allowing members to earn and redeem seamlessly, will go a long way to a place on the highly sought-after consideration list.
To review the full report, please visit: https://powerretail.com.au/resources/loyalty-insights-report/
