Reason For Failing Australian Loyalty Schemes Revealed

A lack of good enough rewards was the top reason

A survey from the first half of 2016 shows why Australian internet users are dropping loyalty programmes. According to the report from Directivity, the sudden drop in growth of loyalty promotions over the last three years in the country is due to the lack of rewards received by customers. Of those asked why they had stopped participating in a loyalty programme, over half said that they weren't earning points or rewards fast enough. Other reasons cited were that they were a hassle, or rewards were changed, but they came far behind the lack of payback. This year, a similar report from Nielsen revealed that a third of users in the Asia-Pacific said that the presence of reward systems was “influential” in their decision to shop somewhere, but on the evidence found in Australia, marketers may need to improve payoff, in order to get long-term business. 

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