Retailers are moving quickly to ramp up loyalty programs in the face of disappearing cookies to acquire and retain customers.
Eighty-three per cent of Australian consumers are loyal to their preferred retailers, with 18 per cent reporting increased loyalty program usage over the past year.
Research by Retail Doctor Group and Pureprofile shows almost all (95 per cent) Australian consumers are members of one or more loyalty programs with close to half (45 per cent) saying that a loyalty program would make them visit a retailer more often and 27 per cent saying a program would encourage them to spend more at said retailer.
“Australia currently finds itself in a unique economic situation and it is interesting to see how consumers are responding,” says Anastasia Lloyd-Wallis, COO of The Retail Doctor Group.
“The research has uncovered that loyalty programs weigh heavily when it comes to purchasing behaviour but that consumers have demands when it comes to these programs. They want personalisation, systems have to be easy to use and they want to see their loyalty rewarded quicker. In fact, access to special discounts was the most important consumer consideration with these programs.”
The top reason for loyalty across homewares (63 per cent) was because consumers liked the look and feel of a brand or a retailer. Conversely, the top reason for disloyalty across homewares (54 per cent) was because consumers followed a sale.
“While loyalty programs are a key influencer when it comes to purchasing behaviour, consumers report that connection to a brand is the most important driver of loyalty, even more so than price,” says Martin Filz, CEO of Pureprofile.
“So retailers need to think holistically about the customer experience from fantastic in-store experiences to personable staff interactions and frictionless online journeys. Every touch point is an opportunity to win or keep loyalty which is of paramount importance in the current environment.”
Check out the full article in our marketing feature in the latest winter edition.
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