Woolworths leads in loyalty

More than 71 per cent of the Australian population are members of at least one store loyalty program and Woolworths Rewards is the most popular, according to Roy Morgan Research.

Woolworths Rewards (formerly Everyday Rewards) has 49 per cent of Australians over the age of 14 among its ranks, ahead of the Coles-powered FlyBuys program (45 per cent).

When measured by the proportion of their shoppers who are members, Woolworths again comes out in front. Almost eight in every 10 shoppers at Woolworths/Safeway in any given four weeks, as well as more than six in every 10 people who shop at Woolworths-owned BWS, are members of the program.

Similarly, FlyBuys members comprise a resounding majority of Coles customers (69.2 per cent), as well as over half of all shoppers at FlyBuys partners Liquorland (61 per cent), Kmart (54.4 per cent), Target (54.3 per cent), and First Choice Liquor (53.6 per cent).

Roy Morgan Research Industry Communications Director Norman Morris says while it is perfectly reasonable for retailers to want the consumer intelligence provided by a large loyalty program, it’s worth remembering that customer loyalty programs are about more than big data.

“They must also give their customers reason to be loyal,” he said. “Calling your program a rewards program but making it hard for customers to redeem their rewards is the first step to failure.”

Women comprise the majority of members for almost all the customer loyalty programs measured by Roy Morgan. The one exception is Dan Murphy’s, whose My Dan Murphy’s program has a slightly higher proportion of male members than female.

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