Almost 50 per cent of Australians are unwilling to share their data with retailers, according to new research, signalling a general distrust in the handling of their personal data.
Drawn from a survey of over 2800 engaged shoppers, and exploring 44 retail-specific loyalty programs, the Loyalty Insights Report from Power Retail and the Australian Loyalty Association (ALA), highlights a pressing need for retailers to rebuild consumer trust in handling personal data safely.
Power Retail Editor Rosalea Catterson says increased consumer awareness around data security, following multiple recent data breaches from prominent Australian companies, has undoubtedly driven this sentiment.
“Whilst data security is a major concern for consumers, it offers a key opportunity for retailers to adapt and re-build trust with their customers,” she said. “An up-front approach that communicates clearly with consumers about where and how they use their data and the measures they take to protect customer data, can go a long way to building consumer trust and create opportunities for more personalisation, enhancing loyalty programs in ways that most benefit their customers.”
Immediate rewards favoured
Loyalty programs that helped Aussies to lighten the load on their wallets such as Woolworths Everyday Rewards and Coles Flybuys, were the most popular loyalty programs with all shoppers surveyed. Both of these specific programs offer discounts on spending, full payment of reward items using points, and cashback on spending, which are the most well-liked incentives for shoppers.
With spending on everyday essentials increasing by 5.4 per cent last year, shoppers are on the lookout for any opportunity to save money, with one respondent saying, “Groceries are a big expense and being rewarded for buying products that are a basic need is helpful,” and another stating “All I care about is cash back or discount incentives, not special offers or exclusive deals.”
When it came to generational preferences, the report found that 67 per cent of Gen Z respondents believed that loyalty programs provided a high level of value. This generation also had the highest engagement with loyalty programs out of any generation surveyed
Focus on satisfaction drivers
CEO and Founder of Power Retail Grant Arnott says retailers that help shoppers easily earn, access and use rewards incentives to ease financial strains stand themselves in a strong place to gain favour with shoppers and achieve long-term loyalty.
“To achieve this, retailers need to focus on the most reported satisfaction drivers: easy-to-understand schemes, easy-to-use apps and website tools, as well as strong clear customer communication, all of which help to build trust and brand loyalty,” he said.