Smart buyers’ loyalty rewarded

Reward programs remain popular despite recent credit card changes, writes

LOYALTY programs for consumers are growing in popularity despite some credit card rewards taking a hit from rule changes in July.

As a new breed of loyalty programs delivers cutting-edge technology to customers, the most popular reward offerings remain with big supermarket and airlines.

Gennady Volchek, whose company Authenticateit is behind new mobile shopping app Shping, said reward programs were “a great way for brands to show their appreciation”, but it was important for consumers to understand what extra effort or spending was needed to secure rewards.

“Some rewards can be misleading – you only get them if you spend more money on a product you don’t really need,” he said.

Mr Volchek said some shoppers were now earning loyalty points in their digital wallets through cryptocurrencies “which can be converted into cash”.

“It’s new, but it’s a rapidly growing market,” he said.

“The global community of cryptocurrency users went from 10,000 two years ago to

500,000 people now actively buying and selling, and it’s expected to grow to millions in a short period of time.”

For most shoppers, Coles flybuys remains the nation’s number one loyalty program, according recent research by consultancy The Point of Loyalty. Flybuys was a clear winner over Woolworths Rewards, which was improving, while Qantas Frequent Flyer, Priceline Sister Club, Virgin Velocity and Myer One were ranked as the next-best programs.

The research found the average adult was enrolled in more than four programs, and the figure was growing. Twothirds of customers were redeeming rewards – up from 57 per cent in 2016.

The Point of Loyalty CEO Adam Posner said millennials were enrolled in an average of five programs and one in seven women had more than 10. Mr Posner said recent changes to credit card programs – which saw several reward offerings watered down dramatically and some cards cancelled – meant people should find the right card and rewards to suit them.

“Understand that loyalty programs are a two-way relationship,” he said. “To maximise your benefits, you need to work out which brand or business gives you the best rewards based on your purchase behaviour – how often you visit, purchase and how much you spend.

“It’s better to be a member of fewer programs to maximise your rewards than spread your spend over many of the same kinds of businesses which may therefore reduce the amount and quality of you get.”