It’s a simple question with a complex answer. In the first study of its kind, two Australian researchers conducted a study on the effectiveness of loyalty programs. With 88% of Australia’s population participating in some sort of membership/loyalty program, it is surprising this study hadn’t been conducted well before 2013.
The study made several important conclusions about the shopping habits of Australia’s citizenry. First and foremost, 80% of Australians indicated that they made more purchases from companies offering some sort of loyalty program. Additionally, 55% of consumers surveyed indicated they would select a company offering a rewards program over one that didn’t for an initial purchase.
This proves that not only are clients receiving rewards more likely to return to a business, but the availability of those rewards is a determining factor when investigating a new service or product. An additional 46% said that a rewards program created a greater sense of brand loyalty.
Some Key Insights
As the writers of the findings put it “It’s crowded – find your crowd.” Loyalty programs have become a common part of the Australian business landscape. As a result a large number of businesses are offering some sort of program. The only way to survive in this kind of environment is to find a way to stand out and be valuable to your business’ crowd.
Targeted marketing is pivotal for any business. The study also concluded that men, on average, are members of fewer programs. Women tend to be members of more programs and spread their purchases across more of those programs. Older customers, 55+, tend to buy more and choose from brands that have a loyalty program.
Make Sure Your Program Works
Offering a loyalty program is only the first step in the process. Businesses with loyalty programs that fail to deliver quality merchandise or don’t supply rewards in a timely fashion will actually do more harm than good to their public reputation.
One of the best ways to ensure a loyalty program is maximizing its potential is to engage a third party management company. These companies, such as RewardCo, provide a curated selection of rewards to recipients. RewardCo also handles all aspects of reward fulfillment, taking the burden of packing and shipping of the shoulders of the business owner.
The results are in. Businesses across the world, and in Australia in particular, can only benefit from a loyalty program for clients. Contact RewardCo today to get your personalized program started.