Flybuys remains the top ranked loyalty program according to Australians, though the distance between it and second-place Woolworths Rewards narrowed significantly in 2019, according to the 7th annual For Love or Moneyreport.
Flybuys dropped from a 35 per cent share to 30.4 per cent in the latest report, while Woolworths Rewards grew from 20.2 per cent to 21 per cent, based on survey respondents stating the programs were “doing a very good job.”
While much of the list of top loyalty programs appears the same, there are some notable additions and subtractions, with Myer One and Commbank Awards falling off the list to make room for Event Cinema’s Cinebuzz Rewards, and Mecca’s Beauty Loop program.
The most important considerations by program members surrounded how secure their data is, how it’s being used, and the reputation of the company itself – with 57 per cent of survey respondents noting they are worried they will be hacked or subjected to fraud based on information gathered by a loyalty program.
“With numerous data breaches being reported world-wide… loyalty programs are at a pivotal point with member data protection, collection and use,” report author and chief executive of The Point of Loyalty Adam Posner said.
“To maintain members’ trust and ongoing engagement with their loyalty programs, brands with programs should prioritise a proactive and transparent approach to clearly highlight to their members how their data is being protected and used.”
Despite concerns surrounding the use of data, 62 per cent of loyalty program members take advantage of the rewards and benefits available to them. Millennials were the most likely to utilise these rewards, with 68 per cent indicating they utilise the advantages of a loyalty program.
Additionally, the report found that loyalty programs tend to stimulate extra purchases from its members, with 28 per cent of members indicating purchased something they didn’t need in order to earn points, or maintain program benefits – an increase on the 16 per cent first measured in 2015.
“The incremental purchases that a well-structured loyalty program can stimulate is where business who invest in loyalty programs really succeed,” Posner said.