, Australia

More loyalty programme members are making the most of benefits — here what it means for QSRs

71% of members indicated that the loyalty programmes have an impact on how much and how often they purchase.

Seventy per cent or seven in every ten Aussie loyalty program members are taking advantage of most rewards and benefits their programs offer, according to the latest For Love or Money customer loyalty and loyalty program research study.

The latest number is a significant increase since it was first researched in 2016 when just 54% indicated they were taking advantage of most of their rewards and benefits. 

“With increasing inflation and economic uncertainty, it’s not surprising members are more engaged with programs they know and trust to earn more savings and rewards,” said report author and The Point of Loyalty chief executive Adam Posner.

“At the same time, brands with programs also win. Their members interact and transact more, and the business is rewarded with retention and repeat business,” he added.

71% of members indicated that the loyalty programmes have an impact on how much and how often they purchase, up from 56% in 2020.

45% of members also noted having higher expectations of the use of their data if they are a member of a loyalty programme.

“As brands focus on their zero- and first-party data strategies, loyalty programs are becoming a go-to strategy to interact with their customers in a personal, consented, and compliant way. This places an expectation on brands to use this personal and behaviour data to add value to the lives of members,” Posner explained.

The report also tracked new ways for members to be rewarded, with 32% of members revealing that earning cryptocurrency as a reward is appealing. For Gen Z and Y, their desire to earn cryptocurrency as a reward is significantly higher, ranging at 44% and 47% respectively. 

The report also highlighted an increasing trend in “subscription guilt”, referring to a feeling of guilt for not using or accessing enough of the benefits offered by a subscription, from 30% in 2019 to 36% in 2022.

“Subscription programs are very popular for some categories of business with entertainment streaming services, food delivery, meal kits and even QSRs taking advantage of the subscription program model. However, members are indicating their ‘guilt-factor’ when not taking advantage of the benefits offered and this is watch-out for managers of subscription programs,” Posner said.

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