Australia Loyalty Programs

1. WOOLWORTHS REWARDS: RETAIL INDUSTRY

HOW THE PROGRAM IS ENGAGING WITH CUSTOMERS:

• The company is posing the program as 'one of a kind' benefit membership program with an aim to deepen and strengthen customer relationships by offering personalized offers.
• It is asking customers to sign up in order to earn Woolworths Rewards.
• The company used a weekly catalogue of hyper-personalised offers to engage customers via an email campaign.

MECHANISMS USED FOR THAT ENGAGEMENT:

• Woolworths Rewards is engaging customers mostly through email marketing.
• Woolworths Rewards has used email marketing, display advertising, point of sale, and mobile marketing to engage its customers.

EXAMPLES OF THAT ENGAGEMENT:

• Woolsworth Rewards email program
• Woolsworth Rewards on Facebook
• Woolsworth Rewards on Instagram

WHY THIS IS BEST IN CLASS:

• Woolsworth rewards email campaign had a 16% increase of email open rate and a net promoter score of 10%.
• The company’s hub program had over 2 million customer interactions, and have attributed to over 60,000 new member sign ups.
• According to Woolsworth, by increasing personalized engagement with their customers they had an increase in Rewards members, The number of Rewards members grew to 10.9 million at the end of June 2018.
• Woolsworth Rewards placed second place in the Top 10 Unprompted Most Mentioned Programs in 2017, with 13% of the votes.

2. QANTAS FREQUENT FLYER: TRAVEL INDUSTRY

HOW THE PROGRAM IS ENGAGING WITH CUSTOMERS:

• Qantas Frequent Flyer partnered with BWM Dentsu Sydney to create a loyalty program with the message tagline of ‘Why Not?’
• The ‘Why Not?’ engagement avenues include unique rewards and benefits that can be unlocked as a member of the Qantas Frequent Flyer program.
• Qantas has also partnered with over 200 different companies such as major banks, supermarkets, and insurance companies that buy frequent flyer points from Qantas, which can be used to reward their own customers.

MECHANISMS USED FOR THAT ENGAGEMENT:

• Qantas Frequent Flyer uses digital banner ads, TV ads, outdoor activities, and social media to engage with its customers.
• The company also uses YouTube for its videos ads.

EXAMPLES OF THAT ENGAGEMENT:

•  Banner ads.
• A video of Qantas Frequent flyer program.

WHY THIS IS BEST IN CLASS:

• In 2016, 4.9 million seats were purchased with points from the program.
• The Qantas Frequent Flyer program is one of the leading online loyalty redemption programs in Australia with over $100 million in value redeemed each year.
• The Qantas Frequent Flyer program has helped the company to increase its revenue by more than $400 million a year since its launch.

Additional Findings:

Velocity Frequent Flyer: Travel industry

How the program is engaging with customers:

• The company is engaging its customers with offers and promotions using the tagline of #Earnbassadors.
• The engagement was aimed to educate members of the Velocity program about status credits.

Mechanisms used for that engagement:

• Velocity Frequent Flyer loyalty program is using email marketing and social media to engage with its customers.
• The company is also using TV ads.

Examples of that engagement:

•  TV ads

Why this is best in class:

Case study#1: OYO's loyalty program; category: travel

• This program was chosen as the example of a best-in-class loyalty program, as, OYO Wizard is the largest "hospitality-paid loyalty program" in India and has reached 1.5 million subscribers. In terms of engaging with customers, the program has contributed to 25% of OYO bookings.

• It asks customers to become members and pay an early-bird membership price of INR 99. Membership is expected to provide "surprising benefits" to those who enroll.
• The company is posing the program as a "one of a kind" benefit membership program that is supposed to deepen and strengthen the relationship with the customer by providing guaranteed discounts, benefits, and upgrades.
• The messaging tagline used in OYO Wizard marketing materials is "A Smarter Way to OYO Your Way Around the World".

• OYO posts audio-visual ads on their verified social media pages asking people to register for the loyalty program. Each video posted on social media has the hashtag #OYOWizard mentioned in its description.
• Visuals of customer engagement, as posted on social media handles, also include images declaring winners of various contests meant for Wizard members.
• OYO is also mentioned for their loyalty program on sites which post news on such deals, such as Deal Trendz.
• It also uses third-party coupon aggregation sites, such as Coupon Dunia, to mention its loyalty schemes.

CaSe Study#2: Make MyTrip's MMT Black Loyalty program; category: travel

• As reported by Skift, Make My Trip is the largest online travel agency in India.
• This program was chosen as the best-in-class, because, since its launch in July 2017, more than 900,000 customers have joined, the company.

• The program's tagline is "The Most Rewarding Loyalty Program, Ever!"
• The program engages customers by, among others, offering its members rewards such as stays in Oberoi and Trident Hotels and vouchers for Lenovo, Kalyan Jewelers, and Urban Ladder.
• It also engages through more premium loyalty programs of the same kind, such as MMT Double BLACK which offers 100% free cancellations on 10 domestic hotel and flight bookings

• The primary avenue of connecting with consumers is the company website.
• The company has formulated brand partnerships across channels as well. For example, it has entered into a partnership with the OTT platform ALTBalaji, which allows MMT Black subscribers access to ALTBalaji’s content library of Hindi Original Exclusives.
• The company is also using e-commerce platforms to sell and promote Make My Trip Double Black — Membership gift cards.

CaSe Study#3: Future group's loyalty program; category: retail

• The loyalty program of Future Group is considered to best-in-class as it has managed to subscribe 30 million members.
• In terms of customer engagement, members on paid loyalty platforms visit the company on average 18 times a year.

• The company uses several loyalty programs to engage with its vast base of customers. These programs include Big Bazaar Profit Club, T24 Mobile Program, and the recently introduced Easyday Savings Club and Future Pay mobile wallet.
• Through these programs, the company engages in the segmented targeting of its audience. It uses certain promotions for specific groups of loyalty customers, which allows members to fully benefit from their membership. According to the company, this mode of engagement helps to achieve higher visits and higher sales.

• Through these loyalty programs, the company aims to decrease its dependency on mass media advertising. It prefers to use other channels such as its own loyalty platforms and social media for this purpose.
• The company uses social media and digital channels to implement its "online-to-offline model" as well.
• The company used Twitter campaigns for a wide range of products and decreased the price of products with every retweet. This, according to the company, generated a huge response from its customers.

Case Study#1 : Club Premier by Aeromexico

•  Club Premier, from airline Aeromexico has more than 4 million members. Each month, more than 20,000 award tickets are redeemed.
• Members are encouraged to engage with the program as there are more than 100 affiliated companies that members can earn points with. Some examples include affiliate airlines, cruise lines, Hilton Hotels, Hyatt Hotels, Hertz car rental and more.
• Club Premier members with co-branded bank cards also accumulate points.
• When members accumulate enough points, they can exchange them for award tickets with the airline, or other rewards like cruises.
• Club Premier uses several digital and social channels to engage with customers. They have Facebook, Twitter, Instagram and both Android and Apple apps.

Case Study#2 : Savings Wallet (monedero del ahorro) by farmacias del ahorro

• This loyalty program from major Mexican pharmacy chain, Farmacias del Ahorro, encompasses more than 1,300 branches across the country.
• There are more than 15 million registered members.
• Customers receive credit when making a purchase at the pharmacy. Some incentives include subsequent free products, coupons, access to promotions or cashback based on the individual's purchase history.
• There are no limits, so as long as a member keeps purchasing, they will receive incentives.
• Monedero del Ahorro promotes its loyalty program through social media like these Facebook posts and on Twitter.

Research strategy