Tuesday, June 18, 2024

Brand loyalty in the midst of Covid-19

87% of consumers favoured brands they knew during the height of the pandemic in 2020. And, as Covid-19 prevails in 2021, they tend to stay loyal to brands whose loyalty programs they are members of.

The findings are from the 9th annual Australian customer loyalty and loyalty program research study, ‘For Love or Money 2021’.

Report author and CEO of The Point of Loyalty, Adam Posner says brand familiarity plays a key role in creating ‘sticky’ customers especially when the world we are living in is changing so dynamically.

“Interestingly, Gen Z identified as the most loyal generational cohort to a brand whose loyalty program they are a member of,” he says.

The report also highlights a trend in loyalty programs improving since 2017 with 68% of members in 2021 indicating programs have improved vs 51% in 2017.

The top three areas of improvement have been in the

  • achievability of rewards
  • simplicity of interacting with a program
  • enhanced use of technology such as mobile apps and mobile payments.

In the rankings of Australian loyalty programs most mentioned unprompted by members as ‘doing a very good job’, Woolworths Everyday Rewards is right on the tail of flybuys (28.9% vs 29.7%).

The research also reveals members prefer programs with partner offers, earning rewards instantly and earning rewards for referrals.

“Keeping programs fresh and out of the sea of sameness is a challenge and the research continues to share new ways for programs to stay relevant and a step ahead,” Mr Posner said.

A complimentary Executive Summary of the full report is available at www.thepointofloyalty.com.au.

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