Results from the 12th edition of the annual Australian customer loyalty and loyalty program research study, For Love or MoneyTM 2024, reveal that 50% of loyalty program members have become actively involved in ALL of the programs they are members of.
This is the highest active rate as tracked by the research since 2021 where only 43% of members reported they were active in all of their programs.
The research defined an active member as having presented their card or membership number when making a purchase in the past 12 months.
Report author and CEO of The Point of Loyalty, Adam Posner, said, “With economic uncertainty and everyday living expenses increasing, it’s not surprising members are more actively engaged with programs they know and trust to earn more savings and rewards.”
“However, 50% activity means the other half of their programs are not being actively engaged in. This highlights the need for loyalty programs to be more financially relevant, useful, and joyful”, he said.
Loyalty programs prove to be an asset to the overall brand experience.
Since 2018, the research has tracked the impact of loyalty programs on the brand experience. There has been a significant positive trend of members agreeing loyalty programs are enhancing the overall brand experience.
In 2024, 80% of loyalty program members agree that the programs they are a member of, generally enhances their overall experience with a brand. This has increased from 68% in 2018.
Posner said, “A well-designed and managed loyalty program enhances the overall experience the member has with the brand. This means brands with programs need to nurture their programs to be profitable and sustainable for the brand and meaningful and desirable for their members.”
The halo effect of data security breaches on loyalty program members’ attitude to the data value exchange.
Even with the widely publicised data security breaches, more than one in five loyalty program members (21%) are still confident with the security protocols of loyalty programs and are happy to share their data, knowing they are gaining benefits and rewards from the program.
However, most loyalty program members (54%) are now more concerned about sharing their data with programs but will still do so, knowing they are gaining benefits and rewards from the program. Only 2% will no longer join any loyalty programs due to concerns over data breaches.
Adam Posner added, “While there is sensitivity to sharing their data, members will still share when there is a fair value exchange. On the other side of this, there is a level of trust in loyalty programs being more focused on data protection now.”
Emotional loyalty – myth or reality.
For the first time in the ongoing research study, emotional loyalty to a brand was researched with consumers. 85% of consumers identified with a feeling of emotional loyalty (in a positive way) to a brand at any one or many moments.
While fostering a feeling of emotional loyalty is a combination of many and varied moments, the top five one-off or ongoing moments identified by consumers in the research were:
1. Being recognized and rewarded for being a valuable customer (49%)
2. Thanking them for being a valuable customer (36%)
3. Meeting expectations when purchasing product/service from the brand (33%)
4. Make the purchase experience simple and seamless (28%)
5. Being surprised and delighted with special moments and unexpected rewards and benefits (26%)
Posner commented, “Emotional loyalty to a brand is a topic of wide and varied debate, and the research adds some new insights to the discussions, giving brands a guide on how to foster a deeper emotional connection with their customers.”
A complimentary Executive Summary of the full report is available at www.thepointofloyalty.com.au with a comprehensive report available for purchase at www.thepointofloyalty.com.au.
For further information or to arrange an interview, contact:
Adam Posner: CEO – The Point of Loyalty
0433 818190
adam@thepointofloyalty.com.au
About the research
The For Love or MoneyTM 2024 research is the 12th Australian edition of the annual research study. It was commissioned by The Point of Loyalty and conducted independently by First Point Research and Consulting in the first quarter of 2024 through a national online panel of 1,010 Australian consumers, men, and women aged 18+, who are members of at least one loyalty program. The research was structured to gain quantitative results with comparative analysis as well as qualitative insights.
About The Point of Loyalty
The Point of Loyalty is a strategic customer loyalty and loyalty program consultancy dedicated to driving business growth from existing customers through valuable loyalty and rewards programs. CEO Adam Posner is a customer loyalty specialist who has designed, developed, and deployed customer loyalty and rewards programs across industries, including entertainment, pharmacy, hotels and accommodation, trade, education, hospitality, and retail (various).