Media Release

Loyalty programs pay off… for the retailers

  • Australian loyalty members spend up to 40% more than non-members
  • There are more than three times as many loyalty cards as credit cards in Australia
  • How to score a deal without signing up to a program

11 April, 2017, Sydney, Australia -- Australians could save hundreds of dollars by not signing up to retailers’ loyalty programs, according to finder.com.au, Australia’s most visited comparison website.

While customers can be attracted by a bonus discount on their first purchase, finder.com.au research reveals that in the long run, signing up to loyalty programs doesn’t always pay off.

In fact, Australian loyalty members spend up to 40% more in store than non-members.

Research shows that in 2016, 82% of Australians over 18 were enrolled in at least one loyalty program. That’s a staggering 14.9 million people opening themselves up to enticing calls and emails about sales and offers.

Bessie Hassan, Money expert at finder.com.au, says while it’s tempting to sign up when a discount is on offer, it can lead to impulse spending down the line.

“We’ve all been in a store and given away our personal details for an extra 10% off. While it makes sense at the time, days after we start receiving information about offers and promotions that tempt us to make another purchase.”

Many Aussies are part of loyalty programs. In fact, finder.com.au analysis reveals there are more than three times (3.47) as many loyalty cards as there are credit cards in Australia, with 58 million rewards cards in circulation compared to 16.7 million credit cards.

“It’s no secret that these rewards programs generally allow retailers to track buying habits and personalise newsletters to encourage shopping.”

“However when shoppers receive catalogues and emails from a variety of different stores, it becomes hard to cut through the clutter and assess whether deals are good value,” says Hassan.

In 2016 almost a quarter of members (23%) scrapped their loyalty program with more than half (51%) of those leaving because of earning miserly rewards.

“If you’re easily persuaded by promotional emails, you can bypass signing the loyalty programs altogether and instead, hunt down a coupon at the time of purchase,” says Hassan.

Tips for scoring deals without signing up to loyalty programs

      • Find a coupon code

A great way to score discounts without signing up to newsletters is by visiting finder.com.au’s Deal Finder for coupon, deals and vouchers. This way you can find the best ones to suit whatever you’re purchasing at the time.

      • Shop around

Don’t put all your eggs in one basket because many retailers will stock similar brands. Those nice pair of leather boots might be $200 at one store and $180 at another. Shop around before you commit, so you’re not left with buyer's remorse.

      • Opt out of the weekly newsletters

Loyalty programs give you the option to ‘unsubscribe’ on their newsletter. You can still enjoy promotions when they are available without receiving multiple emails per week.

      • Leave things in your cart

If you’re shopping online fill your cart with the items you want and leave it for a few days. Many retailers will try to lure you back with social media advertisements offering you a discount on those specific items.

      • Follow your favourite shops on social media

Social media is a great way to hear about different sales. Many retailers will announce flash sales on their Facebook and Instagram.

1 Experian Hitwise since 2015
2 KnowITALL Loyalty Systems, 2017
3 The loyalty point: For love or money 2016 report

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For further information

Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About us

More than 3 million Australians turn to finder.com.au every month to save money, time and make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.

Our free service is 100% independently-owned by two Australians: Fred Schebesta and Frank Restuccia. Since launching in 2006, we’ve helped our users make more than 17 million decisions.

We continue to expand and launch around the globe, and now operate in the United States and United Kingdom. For further information visit www.finder.com.au.

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