Shoppers urged to make use of loyalty programs as cost of living soars

Aussies love to nab themselves a good bargain, and for good reason. The psychology behind the euphoria of getting a good bargain is rooted in the concept of 'loss aversion bias', which refers to the idea that we feel more strongly about losses than gains. It's not just the satisfaction of knowing that saving more when we get a bargain, but it's also all about making sure we don't lose out when we do see a bargain, and that's what makes them so irresistible sometimes. Talk about fear of missing out!

"Loyalty programs play a key role in enabling shoppers to secure a bargain, but incredibly, up to 80 percent of shoppers are not taking advantage of these opportunities. They are not making the effort  to consistently use their loyalty cards," Carly Neubauer said.

"The loyalty programs market in Australia is tipped to reach US$ 6452.3 million by 2026. In 2022, approximately 90 percent of Australians were enrolled in at least one program. With so many people registered with programs but not using them regularly, there are significant benefits going to waste - we are talking benefits in the millions of dollars."

Carly Neubauer is the cofounder and director of Elevate Loyalty, the company which has just launched groundbreaking tech called OneTap Loyalty, that will enable shoppers to use their payment card as a loyalty card instore and online. Shoppers simply give their loyalty programs permission to recognise their payment card at the checkout ensuring their rewards are allocated to their loyalty member account, regardless of whether they swipe or input their loyalty card details or not.

According to Neubauer, the tech will revolutionise the loyalty program sector and ensure shoppers receive the millions of dollars in rewards that are currently being missed because shoppers aren't taking the time to swipe their card at the checkout.

Neubauer has outlined the five top reasons why shoppers should be ensuring they engage with their loyalty programs.

Cost of living crisis

"The cost of shopping for household essentials has increased significantly. Living Cost Indexes LCIs) measure the price change of goods and services on living expenses. In Australia we have five LCIs and all five of them have risen from between 0.8 percent and 2.0 percent. There's no escape from them! Neubauer said.

"Benefits and rewards accumulated through rewards programs provide shoppers with the ability to access discounts, free products and many other advantages. Some loyalty cards can reduce the price of petrol by a few cents, some others might give you discounts on things such as cinema tickets.

"Consumers need to ensure they are using their spend to their advantage and utilising all the benefits that come with loyalty programs. If used carefully and strategically, loyalty programs can save you hundreds to thousands of dollars per year."

Get notified on special offers and deals

"Just like having a personal assistant to give you an update, many programs inform you of special offers and deals.  This can help you stretch your dollar further. Why get something for more if you can get it on special? Every little bit helps these days," she said.

You receive rewards and partner deals for other brands

"Many corporations have several companies under their umbrella, so if you're using your loyalty card at one store, you're likely to be eligible to access partner deals from other brands," Neubauer said.

"This is a great marketing strategy but also gives customers a good deal, so it is a win-win situation all around.  In addition, many loyalty programs also have strategic partnerships with other brands that enable spend and accrued points to be used at other businesses."

Retailers can customise offers to meet your needs

"Backend algorithms sometimes raise our suspicions and we might think that companies are collecting data about us. That is true to a certain extent but on the flip side, the more a company knows about us and our spending habits, the better they can get at showing us the offers that are available in a category that's highly relevant to you. It can be a useful thing, you just have to get your head around it," Neubauer said.

"Look at it this way, it's not much use to you if you're interested in electronics to be receiving offers on pyjamas and scented candles. But if you have been price watching some bits of audio equipment, wouldn't you want to know when the sales are on."

You can use your rewards as gifts for others

"You know how we sometimes receive presents from others, but we don't need them because it is not something we like or we already have something similar, so you quietly recycle the gift and give it to someone else? It is exactly the same here. With rewards programs, you can save yourself some money by using your rewards to put towards gifts for someone else," Neubauer suggested.

Save more, spend less

"Loyalty cards are designed to reward your loyalty to a particular store. Make those metrics work for you and get rewarded for spending at your favourite stores. With the cost of living continuing to weigh over us like a dark cloud, many Aussies are getting wise about spending less and saving more," Neubauer said.  

"If you have ever watched those American extreme couponing shows on TV, you will see the lengths some people go to in order to save money.   Turning your payment card into a loyalty card, will ensure that you never miss any rewards."

About OneTap Loyalty

OneTap Loyalty is a new digital payment solution in the Australian and New Zealand retail and loyalty market. Using OneTap Loyalty technology, users who register their payment card, usually a credit card, within their loyalty programs enable the card to become an automatic loyalty card, meaning that program members will engage with their loyalty schemes every time they put through a transaction.   Elevate Loyalty is Australia's leading loyalty expert comprising advisory services and loyalty technology designed to enhance the retail sector's ability to engage, grow and excel through innovative loyalty programs and customer insights.  

www.elevateloyalty.com