loyalty systems

by Tim O’Grady, KnowITALL Loyalty Systems

Are loyalty programs worth the effort? Let’s examine both sides of the argument…

The believers

For those businesses who are believers, the reasons they believe are driven by two critical business growth outcomes:

  • More spend by members vs non members (up to 40% more)
    PLUS
  • More visits by members vs non members (up to 50% more)
    EQUALS more revenue to the business.

Three more reasons businesses believe in loyalty programs are:

  • The data and insights they gain on their members behaviour – which can be tracked to an individual level providing the power to know who the most valuable customers are
  • A relevant and ongoing reason to send targeted communications to their customers and
  • A mechanism to provide an emotional connection through surprise and delight offers, which build referral and recommendation outcomes
    With these reasons being valid, the most important reason is the sum of all of these parts and that is, a return to the business that is greater than the investment.

Another critical reason: Australians want to be rewarded for their loyalty

The latest Australian research on loyalty programs ‘for love or money 2016’ highlights that 57% of Australians believe brands should have a program to keep their customers loyal and this jumps to 68% for Millennials who want to be rewarded for their loyalty [Source: www.theloyaltypoint.com.au]

A loyalty program is not the answer for every business.

To balance the yes with the no, the reasons a business would not believe a loyalty program is worthwhile comes from an uncertainty on how to ensure a profitable return, how to execute for success and uncertainty on how to make their program different so that their customers are motivated to be members.

For the past 5 years, KnowItAll Loyalty systems has been helping businesses design and deploy loyalty programs. They now service over 240 retail stores (from single store to larger groups) with nearly 750,000 members enjoying the benefits of simply structured loyalty programs that are profitable to the business and meaningful to their members.

The data gathered from these members continues to show results such as members spend up to 40% more than non members and their visit frequency is up to 50% more than non members.


So, are loyalty programs worth the effort? KnowITAll can help you assess the value and viability of program with their loyalty financial models and guidance on how to ensure a program is executed for success. Email [email protected] for a no-obligation chat to find out if a loyalty program is worthwhile for your business.