Are Australian Firms Rewarding Loyal Customers Enough? - eMarketer

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Are Australian Firms Rewarding Loyal Customers Enough?

Consumers have too many rewards programs—with too few rewards

September 3, 2015

According to research, the biggest reason for shoppers in Australia to ditch a loyalty program is that they do not feel like they earn enough points. And that problem appears to be getting bigger. A surfeit of loyalty programs isn’t helping matters, either.

Based on 2015 research from Citrus and Directivity, among loyalty program members who have stopped participating in at least one rewards program, 59% did so because they weren’t earning points or rewards quickly enough for their taste. That was the second year running a lack of rewards was the main reason for quitting programs—and the reason was up 8 percentage points over 2014.

The other fast-growing reason for people to stop participating was that they were sick of how many rewards cards they had to carry around. Even though some firms are offering the possiblity of participation through mobile wallets or other digital solutions, the “too many cards” problem persists.

Other issues paled in comparison. Privacy was not a big deal-breaker, nor was confusion about how the pgorams worked. Shoppers were just tired of maintaining several cards they didn’t feel were getting them much in return.

So what do they want in return? Immediate price discounts were most popular, with 78% of respondents, but only 1 percentage point ahead of points-based programs with redemption available for vouchers or products.

Earlier research, conducted by Aimia in July 2014, found that 89% of internet users in Australia used loyalty cards.

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