The power dynamic in loyalty ecosystems offshore has changed, and it’s happening loyalty New Zealand as well. Privacy regulation, the debate over the Customer Data Right and the death of third-party cookies are all transforming the game. While the fear of losing customer data is certainly important, it’s not enough to have an ethical commitment to data protection. Companies must also be able to show a track record of data security and compliance to maintain their reputation.
The loyalty business is a $500 million industry in Australia, with nearly half of that figure coming from credit cards. In New Zealand, the sector is growing at a faster pace, with estimates stating that the first year of a loyalty program can result in 7% more revenue, an 11% increase in sales, and a 6% rise in gross profit. In the past five years, loyalty programs have led to a significant increase in profits for a variety of businesses, from small businesses to multinational corporations.
A recent study has revealed that loyalty programmes are a strong driver of customer retention. A survey of 1000 New Zealanders aged 18 and over found that 75% of respondents are satisfied with their current loyalty programmes. In addition, 69% of respondents are very happy to see a brand they’ve heard of in the past. AA Smartfuel has been ranked as the number one loyalty programme in New Zealand, beating out Fly Buys and Countdown Oncecard.
Loyalty is an essential part of the customer relationship. Increasing sales is a key part of a company’s strategy, and loyalty is an essential component. A new survey, called 2021 For Love or MoneyTM, surveyed 1000 New Zealanders in the first quarter of 2021 about their attitudes towards loyalty programmes. According to the study, the impact of loyalty programmes is so great that 7% of customers will buy more from the same company after three years. And that increase is even bigger when compared to existing sales.
Among loyalty programmes in the country, AA Smartfuel ranks as the top loyalty programme among Kiwis. It has more than a third of the market share, a ranking that isn’t surprising in this competitive environment. The AIA Vitality program, for example, has been a success in every country it has entered, and is considered the best loyalty programme in New Zealand. The AIA Vitality program has a proven track record, and has consistently topped the charts. Similarly, Genesis Energy uses its own product as loyalty currency. The result of this strategy is a lower churn rate and higher customer satisfaction.
The AIA Vitality loyalty programme is an impressive success, and has been a global leader in the industry. The AIA has successfully integrated this strategy, reducing churn by 2%. Besides AA, Genesis Energy also uses its own product as loyalty currency. This strategy has led to a low churn rate and increased revenue. Its competitor Octopus, a UK startup, has no loyalty programme.
In New Zealand, AA Smartfuel is the top loyalty programme. It ranked ahead of Countdown Oncecard, Flybuys and Airpoints. This is the result of a study commissioned by The Point of Loyalty and conducted in the first quarter of 2021. The results were based on a survey of 1,000 people aged 18 and over, and the study’s results are in line with other similar surveys.
The AIA Vitality program is a standout in all categories and countries. The company also offers its own product as loyalty currency, which has reduced churn by 2%. In New Zealand, Octopus has no loyalty program, but will try to improve customer experience. In the UK, it’s no longer an option. A new entrant is Octopus, a company that won’t offer a loyalty programme.
The AIA Smartfuel programme is New Zealand’s most popular loyalty programme, a clear winner in every category. The AA Smartfuel program is the most successful in the fuel card market. It’s the most popular in the country. It also offers a free loyalty program to the customers of its partners. But unlike the AIA Vitality program, no company has offered its product as loyalty currency. In comparison, Octopus Energy offers a customer experience that’s better than their competitors.