Sunday, July 21, 2024

Loyalty programs drive traffic and spend

Nielsen’s Global Loyalty Sentiment Survey found that 57 per cent of Aussie shoppers say they will spend more with a retailer who offers a loyalty program over one without.

The survey also reports that six in 10 Australian consumers are more likely to return to a retailer if they have a loyalty program in place, with almost half of Aussie shoppers (48 per cent) highlighting they will spend more if they are going to be rewarded.

“In today’s market,” Nielsen’s Retailer Services Director Megan Treston explains, “consumers are faced with a dizzying array of retailers vying for their attention, and a retail loyalty program can be a determining factor in where they decide to shop.”

Monetary incentives attached to retail loyalty programs are favoured – product discounts, rebates or cashback offers, and free products top the list of the most valued benefits. Frequent-flyer points ranked as the highest non-monetary benefit.

“Flexibility is very important to Australian shoppers, now having access to an omni-channel experience when it comes to shopping. This means they have access to bricks and mortar stores, online shopping, telephone sales and more,” she said.

More than two-thirds of Australian loyalty program participants say it’s appealing to be able to earn rewards regardless of whether they bought something in store, on a website, or on a mobile device.

“Tailoring loyalty benefits for specific consumers, and using the loyalty program engagement vehicles – be it via an app, email, or in-store interaction – all allow retailers to personalise the loyalty program so that it’s not just a discount vehicle,” she said. “Done well, loyalty programs can also help drive more frequent visits and heavier purchasing for retailers.”

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