Grab your wallet and tally the physical loyalty cards you own. Then add any digital cards stored on your phone, within mobile wallets or membership applications. It is highly probable that you belong to at least one loyalty scheme, and you may even discover memberships you do not recall enrolling in. If this sounds familiar, you are not an outlier.
A 2026 yearly survey commissioned by consultancy The Point of Loyalty found that 93 percent of Australian shoppers reported belonging to at least one loyalty program, the highest proportion recorded since 2016. Nonetheless, only half of those participants indicated they had actively used every program they were signed up to during the preceding twelve months.
The study set out to explore why many consumers join loyalty schemes only to later neglect or forget about them. Its conclusions offer guidance for firms developing such programmes and for customers aiming to extract maximum value.
The research sampled more than 800 patrons of Australia’s major grocery chains, including Coles, Woolworths, Aldi, IGA and FoodWorks.
Demand for these schemes keeps rising. In Australia, the loyalty-program sector has expanded markedly and is expected to keep growing as higher living expenses push shoppers to seek extra value from their purchases.
The supermarket loyalty environment is led by two retailers. Woolworths’ Everyday Rewards boasts 14 million registered participants, while Coles’ Flybuys counts in excess of 9 million members.
For a segment of shoppers, the appeal lies in tangible financial gains such as discounts, cash-back, points and vouchers. Others are drawn by intangible rewards – feeling appreciated, receiving exclusive treatment, gaining early access to new items, or forging a deeper bond with a brand.
When customers fail to recognize these advantages or encounter obstacles redeeming offers, their interest wanes and participation drops. The time and effort required to claim points can also deter ongoing involvement.
The Three Drivers of Customer Engagement
Findings suggest that incentives alone do not sustain engagement. While monetary savings remain relevant, three primary elements shape whether individuals remain active in loyalty programmes.
Customer trust: Shoppers are more inclined to join and stay in a programme when they have confidence in the retailer. Clear pricing, honest communication, dependable service and ethical conduct support belief that the scheme delivers real value.
Customer commitment: Deeper involvement occurs when consumers feel their values align with the supermarket and perceive the relationship as meaningful. Tailored offers, relevant rewards and acknowledgement of personal preferences reinforce this connection.
Perceived benefits: Ongoing participation is driven by visible advantages, whether monetary (savings, discounts) or psychological (exclusivity, convenience, enjoyment, recognition). Schemes that make these perks easy to understand and access tend to keep members engaged.
Imagine you are running low on diapers—a product the store knows you purchase frequently. You receive a text alert offering an exclusive discount on your preferred brand.
Practical Steps for Savvy Shoppers
Consumers should conduct an annual audit of their loyalty memberships to determine which programmes deliver genuine value. Weighing the effort required against actual savings helps decide whether to stay enrolled.
Assessing Loyalty Program Value and Brand Participation
The value of loyalty programs is questioned, with consumers weighing the cost of spending $2000 to earn 2000 points for a $10 future discount. This raises concerns about whether such programs encourage unnecessary purchases or buying items not otherwise needed.
