Best value loyalties go further
If you are looking for the best value loyalty scheme, you should opt for one accepted by as many retailers as possible, one researcher says.
New Zealanders are showing no sign of ditching rewards schemes.
Loyalty NZ, the company that owns Fly Buys, yesterday announced it had operating revenue of $89.4 million in the most recent financial year, up from $87.5m the year before. Profit rose 83 per cent to $1.5m.
Through the year to the end of March, 250,000 new customers signed up to Fly Buys.
But Hamish Mitchell, Loyalty NZ chief strategy and growth officer, said what people wanted from a loyalty scheme was constantly changing and schemes had to keep up.
‘‘They want more rewards, different rewards . . . Some are looking for discounts while others want recognition or different levels of service.’’
He said the key to any loyalty scheme’s success had to be delivering relevant rewards that were based on what people needed and wanted.
He said Fly Buys’ partnership with New World’s Clubcard, which offers South Island shoppers exclusive New World deals and the ability to accumulate rewards in one, had increased member numbers.
Mitchell said it was a balancing act because the companies offering loyalty schemes had to be willing to change to continue to offer relevant rewards.
But the schemes had to be simple to use and people had to understand them. If the offer was too complex, people would think it was not worth their time, he said.
There are 75,000 people using the Fly Buys app, which allows them to use their smartphones instead of a card to collect points.
Massey University marketing professor Valentyna Melnyk said consumers wanted to be offered more personalisation from their loyalty schemes, and deals that would appeal to them based on their shopping habits.
‘‘There are two competing trends. People are overwhelmed with messages and emails that are completely irrelevant to them and want something more specific.
‘‘But on the other hand, they also want privacy and more people are becoming concerned about that. But you can’t have tailored offers without the company knowing about you,’’ Melnyk said.
She said loyalty customers had been shown to appreciate an element of surprise.
In European supermarkets, schemes that had done well sent surprise deals to people’s phones as they entered, based on what they had bought previously.
But she said many people still overestimated the value they were getting back from their rewards points. At Countdown, you need to spend $2000 to earn a $15 voucher. Fly Buys offers one point per $10 to $50 spent, depending on where you shop. At least 80 points are needed for a reward.
Loyalty NZ also offers a data analytics service, LAB360, which gives its retail clients more information about Kiwi shoppers.