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New research: Loyalty program use on the rise amidst cost of living pressures

6 March, 2024 | 

Posted at 11:45 am 

by Pureprofile 

  • 95% of Australians are loyalty  program members, with 30% paying for a program
  • 45% report that loyalty programs make them visit a retailer more often 
  • One in two said that a better loyalty program would cause them to move to a competitor

SYDNEY, 6 March 2024: New research conducted by global data and insights company, Pureprofile Limited (ASX: PPL) and retail advisory firm, Retail Doctor Group,  has found that 83% of Australian consumers are loyal to their preferred retailers, with 18% reporting increased loyalty program usage over the past year. The research, conducted in February, gathered perceptions and attitudes towards consumer loyalty and retail loyalty programs from over 1,000 Australian respondents.

Almost all (95%) Australian consumers are members of one or more loyalty programs, with 30% paying for a program such as Amazon Prime or One Pass. Close to half (45%) said that a loyalty program would make them visit a retailer more often, and 27% said a program would encourage them to spend more at said retailer. 

Anastasia Lloyd-Wallis, COO of The Retail Doctor Group said, “Australia currently finds itself in a unique economic situation and it is interesting to see how consumers are responding. The research has uncovered that loyalty programs weigh heavily when it comes to purchasing behaviour but that consumers have demands when it comes to these programs. They want personalisation, systems have to be easy to use, and they want to see their loyalty rewarded quicker- in fact, access to special discounts was the most important consumer consideration with these programs. 

“It is also important that loyalty programs are not a one-size-fits-all solution to consumer behaviour. The effect  of programs decreases with age, with 70% of Gen Z and Millenials reporting being influenced, but only 35% of those aged 65+ reporting the same.”

The top reason for loyalty across the fashion (77%), homewares (63%), and takeaway food (41%) categories was because consumers liked the look and feel of a brand or a retailer. However, with the grocery category, which was the category that reported the highest levels of loyalty, 60% stayed loyal purely because they were a member of a loyalty program. 

Conversely, the top reason for disloyalty across the fashion (51%) and homewares (54%) categories was because consumers followed a sale. With takeaway food, 51% of consumers were keen to try something new, while 63% sought the cheapest option for groceries. 

The research also revealed that Australia’s favourite loyalty programs are Everyday Rewards, Flybuys, McDonald’s MyMacca’s Rewards, Dan Murphys and Qantas Frequent Flyer. 

Martin Filz, CEO of Pureprofile said, “The list of Australia’s most popular loyalty programs lends real insight into the country’s priorities. Groceries are a clear and consistent focus, followed by affordable treats such as drive-through meals and larger ticket items such as travel. 

“While loyalty programs are a key influencer when it comes to purchasing behaviour, consumers report that connection to a brand is the most important driver of loyalty, even more so than price. So retailers need to think holistically about the customer experience from fantastic in-store experiences, to personable staff interactions and frictionless online journeys. Every touch point is an opportunity to win or keep loyalty which is of paramount importance in the current environment.” 


About Pureprofile

Pureprofile’s vision is to deliver more value from the world’s information.

We are a global data and insights organisation providing industry-leading online research solutions to agencies, marketers, researchers and brands & businesses.

Our research delivers rich insights into real human behaviour and provides the “Why” behind the “What” through our unique ResTech and SaaS solutions. We build in-depth profiles of consumers via our proprietary and partner panels and give businesses the ability to understand, target, and ultimately engage with their audiences.

The Company, founded in 2000 and based in Surry Hills, Australia, now operates in North America, Europe and APAC and has delivered solutions for over 750 clients.

About Retail Doctor Group

Retail Doctor Group is a retail advisory practice that builds retail channels and  FMCG businesses through our customised & transformative ‘Business Fitness™’ methodologies.

Since 2005 we have partnered with our clients to build powerful, award winning, sustainable, and “fit” implemented retail. Ensuring our clients consistently achieve above benchmarks, build sales, sustainable customer growth  and margin results. We stay with our clients to ensure success.

  • Over 18 years helping retail business
  • Insights  – Advisory – Operations – Training
  • Created an excess of $200 million in value for our clients
  • Over 400 clients made Fit for Business™
  • Built by retailers for retailers

Retail Doctor Group insights division specialises in using consumer, market, business and global insights to uncover key data to guide retailer strategic direction.

Unlike others we not only give you the data, we tell you what to do with it and how to implement the results in your business. Our proprietary Limbic Insights™ neuroscientific consumer personality tool allows us to tell you not only what your customers do but why!

Media contact:

Beroze Dubash for Pureprofile
+61 403 402 228

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