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Australian Loyalty Programs are at a Pivotal Point with Member Data Protection and Use

Research reveals loyalty program members are concerned about their data security.

The 7th annual Australian customer loyalty and loyalty program research study For Love or MoneyTM 2019 reveals for the first-time loyalty program members’ view on the collection and use of their loyalty program data.

Commissioned by customer loyalty consultancy – The Point of Loyalty, For Love or MoneyTM 2019 ranks seven factors that members consider as important when providing their data to loyalty programs with their top three considerations being security – knowing how secure their data is; use – knowing how their data is used; and reputation – the reputation of the company asking for their details.

Report author and CEO of The Point of Loyalty, Adam Posner said “With numerous data breaches being reported world-wide and some on loyalty programs such as Dunkin Donuts – DD Perks and Marriott’s program, loyalty programs are at a pivotal point with member data protection, collection and use.”

The report also reveals that 52% of loyalty program members are concerned about loyalty programs being hacked or subject to fraud.

Posner said, “To maintain members’ trust and ongoing engagement with their loyalty programs, brands with programs should prioritise a proactive and transparent approach to clearly highlight to their members how their data is being protected and used.”

The wide-ranging research also reveals members are enjoying the benefits that programs offer, with 62% of members indicating they take advantage of most of the rewards and benefits available through their programs. This is up from 54% when first benchmarked in 2015.

In 2019, Millennials are even more motivated to make the most of their memberships, with 68% indicating they are taking advantage of the rewards and benefits available.

“While members have voiced their view on data use and protection, they are still highly engaged with programs that provide them achievable and desirable rewards and a seamless experience,” Posner said.

For businesses, loyalty programs stimulate extra revenue with 28% of members indicating they have purchased something they didn’t really need in order to earn points or maintain program benefits. This has increased from 16% of members when first benchmarked in 2015.

 Posner continued, “The incremental purchases that a well-structured loyalty program can stimulate is where businesses who invest in loyalty programs really succeed.”

The research uncovers insights on member preferences for various program structures and benefits including the popular subscription models, points programs, and cashback benefits.

2019 ranking of Australian loyalty programs most mentioned as ‘doing a very good job’.

New entrants in 2019: Two new programs appear in the 2019 ranking – Event Cinema’s Cinebuzz Rewards and Mecca’s Beauty Loop:

1. flybuys
2. Woolworths Rewards
3. Qantas Frequent Flyer
4. Virgin Velocity
5. Priceline Sister Club
6 .MyDanMurphy’s
7. Cinebuzz Rewards (New to ranking)
8. Boost Vibe Club
9. Mecca Beauty Loop (New to ranking)

A complimentary Executive Summary is available here with a comprehensive report available for purchase at thepointofloyaltypoint.com.au.

About the research

The research was commissioned by The Point of Loyalty and conducted independently by First Point Research and Consulting in the first quarter of 2019 through a national online panel of 1,000 Australian consumers of 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 consultancy dedicated to driving business growth from existing customers through best-in-class loyalty and rewards programs. CEO Adam Posner is a customer loyalty strategist and has been involved in the design, development and deployment of customer loyalty and rewards programs across industries including entertainment, pharmacy, hotels and accommodation, trade, education, hospitality and retail (various).

For further information:

Adam Posner: CEO – The Point of Loyalty
adam@thepointofloyalty.com.au

Australian Loyalty Programs are at a Pivotal Point with Member Data Protection and Use
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