New Zealand consumers over 18 are enrolled in an average of 4.7 loyalty programs each, says new research – For Love or MoneyTM 2019 – commissioned by Australian customer loyalty consultancy The Point of Loyalty.
Women are inclined to be members of more programmes, with an average of 5.4 memberships, and 13 percent of the population are members of 10 or more programmes.
Loyalty drives revenue
For Love or MoneyTM 2019 is the first of its kind for New Zealand, although it has been a benchmark study in Australia since 2013. The study was conducted in the first quarter of 2019 through a national online panel of 1,004 Kiwi consumers.
Its results indicate that for businesses, loyalty programs are a driver of extra revenue: 22 percent of respondents indicated they have purchased something they didn’t really need in order to earn points or maintain program benefits.
“The incremental purchases that a loyalty program can motivate is where businesses who invest in loyalty programs really benefit,” says The Point of Loyalty chief executive and report author Adam Posner.
What consumers want
For Love or MoneyTM 2019 further reveals that 46 percent of New Zealand loyalty program members want to earn small rewards but get them quickly.
While a loyalty program is not for everyone, 59 percent of members believe that a brand needs a loyalty program to keep them loyal and even more so Millennials (63 percent). When it comes to getting value from their programs, 64 percent of New Zealand loyalty program members said they take advantage of most of the rewards and benefits available through their programs.
While programs are popular, the report also reveals that 53 percent of loyalty program members are concerned about loyalty programs being hacked or subject to fraud. Posner says brands with loyalty programmes should overtly highlight how members’ data is being used to maintain trust and engagement.
The research is wide ranging revealing insights covering:
- Loyalty program landscape in New Zealand
- Attitudes to ‘loyalty’ and loyalty programs
- Preferred loyalty program structures and benefits
- Loyalty Program data collection and use: a privacy and trust perspective
- A deeper dive into loyalty program insights
New Zealand’s top ranked loyalty programs
The For Love or MoneyTM 2019 ranking of New Zealand loyalty programs most mentioned unprompted by members, as ‘doing a very good job’ include:
1. AA Smartfuel
2. Fly Buys
3. Onecard – Countdown
4. Airpoints – Air New Zealand
5. New World Club Card
6. Westpac Hotpoints
7. Mobil Smiles Driver Rewards
= 8. Cinebuzz Rewards
= 8. ASB True Rewards
10. Farmers Club