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With the number of loyalty programs in which internet users in Australia participate flatlining from 2013 to 2016, a survey by Directivity conducted in H1 2016 provides some answers as to why users join such programs in the first place—and why they’re stopping using them.
Over half of those surveyed who belong to at least one loyalty program said they had stopped participating in loyalty programs because they weren’t earning points or rewards fast enough. About 30% listed three other reasons: that the program changed its benefits and rewards, that they no longer shop at that company, and that the rewards didn’t appeal to them.
One in five even cited how much of a hassle participating was. But for the majority of users who have stopped participating in a loyalty program, it really does come down to a lack of payoff.
And internet users in Australia are also less positive about sharing their personal details with loyalty programs as opposed to how they felt two years ago. For existence, while nearly 75% said in 2014 they were happy to receive discounts or special offers based on personal purchasing habits, about 65% said the same this year.
That’s still a majority of respondents, of course, but across the board, users are less likely to feel positively about providing personal details to loyalty programs.
According to a June 2016 report by Nielsen, 33% of internet users in Asia-Pacific said that loyalty card programs were influential in their decision to shop at a particular retailer.
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