The current edition of the point of loyalty is now out. Its the seventh edition and I thinks it is the best review of loyalty marketing for retails in Australia. What it is a consumer research study into the Australian loyalty program written by people who know their stuff. Plus much of the report is based on facts not opinions which I like.
A free executive summary is available here which I would say any Australian retailer should have a read.
Here is what I got out of it.
Most Australian shoppers (89%) are now involved in a number of loyalty programs.
This figure, however, is dropping although it does appear to be hovering at about 50% active over the years which means that about half of the Australian Shoppers are actively involved in loyalty marketing for points.
The next item shocked me.
28% of these loyalty shoppers admitted that they purchased something that they did not need to earn points, and that figure is significantly up on last year.
And the reason why is because these people think of the points as cash.
Anyone that wants to argue that Australian Shoppers are tired of points and just want cash are dead wrong. The majority of shoppers today, see these points as cash. Makes sense, if say in a coffee loyalty program where you get a free cup of coffee after buying ten cups, well that eleventh cup is money.
Finally, how best should retailers contact these people?
Answer: Overwhelmingly by email. Any loyalty program should involve the collection of people's email address.
If you think about it, a lot of these are not frequently coming to your shop. If you want to contact them, email is your best and cheapest option.
Anyway have a read, make your mind up and please let me know your thoughts,