Loyalty programs have become essential in building and maintaining strong relationships between brands and consumers across Australia. With the country’s cost-of-living crisis persisting into 2024, identifying ways to support shoppers’ ever-tightening budgets, for instance, through offering
, plays a large part in retaining customers and encouraging brand loyalty. Gaining a deeper understanding of preferred loyalty advantages,
, and which products, services, and experiences customers would like to save on is crucial in bringing more dormant loyalty memberships back to life and attracting new members.
Australia’s leading loyalty programs: from saving on groceries to budget-friendly trips
To foster lasting connections with customers, several brands across Australia offer loyalty club memberships, with supermarket schemes and frequent flyer programs the
top types of loyalty programs engaged in by Australian consumers. In the food and beverages category, Australian-owned brand schemes such as Woolworths Everyday Rewards, Coles Flybuys, and My Dan’s top the ranking alongside MyMacca’s Rewards from international fast food giant McDonald’s. In recent years,
grocery loyalty memberships and food establishment rewards cards have enjoyed high sign-up rates and activity due to food price inflation. Nonetheless, following price gouging allegations against some of Australia’s leading grocery retailers in 2024, customer loyalty could shift.
Across other retail segments, loyalty schemes from international brands, such as
Amazon Prime and eBay Plus, are widely used alongside domestic memberships including Myer One and Priceline Sister Club. Qantas Frequent Flyer and Virgin Velocity, loyalty schemes offered by
Australia’s leading two airlines, also have high enrollment rates. As of the 2023 financial year, there were over 15 million
members of the Qantas Frequent Flyer program, with membership having grown from just over 12 million in 2018.
Loyalty program engagement and preferred advantages
In 2024, around 90 percent of Australian consumers were
enrolled in at least one loyalty program. However, only around 50 percent of program members reported actively using their memberships. Australia’s active loyalty program members asserted their
most sought-after benefits were regular discounts, cashback based on spending, and the ability to pay in full using loyalty points. Highly personalized recommendations, offers, and gifts, as well as other benefits and tools including member-only access, opportunities to convert points between various retailers, and gamification, have also become key in incentivizing customer engagement and fostering reward program loyalty.
Quality is key in the ever-growing loyalty program landscape
Many consumers tend to shop across various brands and channels to find the best products and services at a reasonable price, making establishing
brand-loyal consumers tricky. Having a loyalty program does not always equate to automatic brand loyalty, as the quality of the program offered is important in terms of customer retention, with many recommending good programs.
Australian loyalty program members reported shopping more frequently and spending more with brands whose program had a high value proposition. Thus, having a high enrollment rate does not always equal high member activity, and analyzing ways to increase active usage is the next step for many brands offering loyalty memberships in Australia.
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