Loyalty Programmes Driving Kiwi Shopping Habits - Survey

Media release : February 18, 2012

Loyalty Programmes Driving Kiwi Shopping Habits - Survey

Kiwis would rather put up with bad service and travel further away in order to cash in on loyalty schemes according to a new survey.

The results are part of an independent study commissioned by food service brand Muffin Break which investigated the habits of shoppers and their interest in frequent purchasing programmes.

The Muffin Break Loyalty Survey* found that more than four out of ten (42%) of those surveyed said they would return to a store where the service had dropped if the loyalty programme on offer was good.

Two thirds (66%) of those surveyed said they would go out of their way to visit a store with a loyalty scheme. It seems women were particularly keen on seizing a bargain with three quarters (73%) saying they would do this compared to just over half of males (58%).

When asked to describe how important store loyalty programmes were to them, nearly half (45%) said they shopped using loyalty cards wherever possible. Four out of 10 (40%) said they used their loyalty card when they remembered or were reminded in store. Only 15% of respondents said they only occasionally or rarely used a loyalty scheme.

Those aged 55+ were most likely to be dedicated users of loyalty schemes with half of those in this age group utilising the programmes whenever they could - this behaviour declined with age with only a third (33%) of those aged 18-24 admitting to using the cards as regularly as their older counterparts.

Interestingly it was also those aged 65+ who were most likely to appreciate good service over loyalty rewards with less than a third (30%) saying they would settle for service below their expectations.

Marketing consultant Mark Devlin says while it is clear that loyalty schemes have become an integral part of the kiwi shopping psyche it's important that these schemes don't become a substitute for good service. He says that brands like Muffin Break where owner operators directly interact with and learn about their customers every day, get it right by making sure their loyalty scheme is just one component in an overall positive service interaction.

The national brand manager for Muffin Break John Macphail says Muffin Break has worked hard to create a premium café experience and the introduction of a loyalty scheme was a natural extension of an intensive customer satisfaction programme developed over several years.

MacPhail says the research was launched to coincide with the launch of Muffin Break's new loyalty programme which will offer customers 'every fifth coffee free'.

"We provide regular incentives to our customers as well as free rewards membership and a complimentary muffin on their birthdays. It's these little touches that we've found customers really notice and helps drive repeat purchases," he says.

ENDS

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