Faithful Followers: Retailer Loyalty Programs Influence Store Choice in the Pacific

Faithful Followers: Retailer Loyalty Programs Influence Store Choice in the Pacific

Consumers are faced with a dizzying array of retailers vying for their attention, and a retail loyalty program can be a determining factor for where they decide to shop. In fact, 56% of Australians and 57% of New Zealanders who participated in Nielsen’s Global Loyalty Sentiment Survey agree that, all other factors being equal, they’ll buy from a retailer with a loyalty program over one without.

Done well, loyalty programs can also help drive more frequent visits and heavier purchasing. Around six in 10 Pacific loyalty program members (Australia: 59%; New Zealand: 61%) agree that loyalty programs make them more likely to continue doing business with a company, and almost half (48%) of Australians and New Zealanders agree that they shop more and spend more with a retailer who offers a loyalty program.

Monetary incentives attached to retail loyalty programs are favoured among Pacific shoppers. Product discounts, rebates or cashback and free products top the list of the most valued benefits; while frequent flyer points ranked as the highest non-monetary benefit.

An omnichannel experience is the new reality for Pacific shoppers and flexibility is very important to them. Loyalty programs should be flexible enough to allow members to engage holistically across brick-and-mortar and digital channels across the entire path to purchase, not just at the checkout.

More than two-thirds of Australian (67%) and around three-in-four New Zealand (73%) loyalty-program participants say it’s appealing to be able to earn rewards regardless of whether a purchase was made in store, on a website or on a mobile device. While 72% of Pacific respondents find the ability to choose among several types of rewards also appealing.

While loyalty programs are intended to increase a retailer’s share of the consumer’s wallet, knowing what program attributes resonate best among customers will ultimately drive better engagement.

Tailoring loyalty benefits for specific consumers, and using the loyalty program engagement vehicles – be it via an app, email, or in-store interaction – all allow retailers to personalise the loyalty program so that it’s not just a discount vehicle. Providing advice, tailored offerings, and other services will delight the loyalty-program member.

For more detail and insight, download Nielsen’s Global Retail Loyalty-Sentiment report.


The Nielsen Global Loyalty-Sentiment Survey was conducted March 1-23, 2016, and polled more than 30,000 online consumers in 63 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America. The sample includes internet users who agreed to participate in this survey and has quotas based on age and sex for each country. It is weighted to be representative of internet consumers by country. Because the sample is based on those who agreed to participate, no estimates of theoretical sampling error can be calculated. However, a probability sample of equivalent size would have a margin of error of ±0.6% at the global level. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% internet penetration or an online population of 10 million for survey inclusion.