January 23, 2025
45 minutes
Alasdair Hamilton
February 19, 2025
25 minutes
In today’s retail landscape, shoppers engage with brands across brick-and-mortar stores, websites, mobile apps, and social media. An omnichannel loyalty programme is a rewards system that spans all these channels, offering customers a seamless and unified experience across their interactions. Unlike traditional loyalty programmes that might only track in-store purchases or separate online accounts, omnichannel loyalty integrates every touchpoint – enabling customers to earn and redeem rewards whether they shop in person, on a website, or via a mobile app. This approach uses technology to deliver relevant offers at the right time, and lets brands interact with customers regardless of when or how they shop. In essence, omnichannel loyalty moves beyond single-channel point collection to focus on consistent customer engagement across all channels.
The importance of this strategy for modern retail cannot be overstated. Consumers today expect a seamless, personalised experience at every touchpoint, and they reward brands that deliver. A McKinsey study notes that shoppers increasingly choose retailers based on the “ease and richness of end-to-end experiences.” Loyalty programmes that connect online and offline experiences help provide that richness. In Australia, as in other markets, loyalty initiatives drive significant shifts in customer behaviour – 60% of Australian consumers in one survey said that simply being a member of a loyalty programme prompted them to spend more frequently, choose that brand over competitors, recommend it to others, or even pay a premium for perks. Top-performing loyalty programmes can see retention rates up to four times higher than underperforming ones. The Australian loyalty market itself has grown by approximately 12% in recent years, as more brands adopt loyalty strategies to retain customers. In short, a well-executed omnichannel loyalty programme is becoming essential for retailers aiming to increase customer lifetime value and stay competitive in a market where customer expectations are higher than ever.
An omnichannel loyalty programme connects with customers across multiple touchpoints in a coordinated way. It uses integrated data and technology to ensure that whether a customer shops in a physical store, browses your e-commerce site, or uses your mobile app, their loyalty account and rewards stay in sync. Offers can be personalised in real time and delivered via the channel that makes the most sense – for example, a push notification for a mobile app user or a coupon code on a receipt in-store. Omnichannel loyalty uses technology to provide a customer experience that delivers relevant offers at the right time, allowing brands to engage customers no matter how they shop. This means all purchases and interactions feed into one unified customer profile, and the customer enjoys a streamlined experience rather than fragmented, channel-specific programmes.
Why is this so critical in modern retail? Because customers view your brand as a single entity; they don’t think in terms of channels. If a shopper earns points on your website, they expect to redeem them in your store, and vice versa. Omnichannel loyalty meets this expectation and in doing so, boosts customer satisfaction and trust. It also provides retailers with a more complete view of customer behaviour. By gathering data from online and offline touchpoints, brands can understand preferences and shopping patterns better, enabling more effective personalisation. Retailers that have embraced omnichannel loyalty report higher engagement and retention: customers appreciate the convenience of accessing rewards anywhere, which strengthens their connection to the brand. Moreover, loyalty members tend to spend more and shop more often when they feel recognised across all channels – we’ll see concrete evidence of this in the case studies and metrics later in this paper.
From a strategic perspective, omnichannel loyalty programmes also future-proof a retailer’s customer relationships. They allow integration of new touchpoints as technology evolves (for instance, integrating social media interactions or emerging channels into the loyalty scheme). Especially in the Australian retail context, where consumers are digitally savvy and increasingly shopping across online and offline venues, providing a cohesive loyalty experience can be a key differentiator. Retail experts note that Australian grocery and retail loyalty programmes already see high usage – about 70% of consumers use their grocery loyalty programme nearly every time they shop – indicating that Australians are very receptive to loyalty offerings. Shoppers who engage via multiple channels are often your most valuable customers. An omnichannel approach ensures you recognise and reward their total engagement, thereby encouraging even greater loyalty.
Implementing an effective omnichannel loyalty programme requires careful planning and a holistic strategy. Below are key considerations and step-by-step guidelines for establishing a successful omnichannel loyalty programme in the retail sector:
By following these steps, retailers set a strong foundation for an omnichannel loyalty program that is both technically robust and customer-centric. In essence, success comes from aligning the program to strategic goals, leveraging technology to integrate channels, and keeping the focus on delivering consistent value to the customer at every interaction.
To understand the impact of omnichannel loyalty programmes, it’s instructive to look at successful implementations from the U.S. market. The following case studies highlight how major retailers have leveraged loyalty strategies across channels and the business results they achieved. These examples offer best practices that are highly relevant and transferable to the Australian retail context.
One of the most renowned omnichannel loyalty successes is Starbucks Rewards, the programme of the global coffeehouse chain. Starbucks has seamlessly integrated its loyalty programme into its mobile app, in-store experience, and online ordering – creating a truly unified ecosystem for customers. The Starbucks Rewards programme allows customers to earn “Stars” (points) with every purchase using a registered card or the mobile app, and redeem those Stars for free drinks and food. What makes it omnichannel is the tight integration: customers can reload their digital Starbucks card via the app or website, order ahead on mobile for pickup, and even get personalised offers via email or app notifications, all while the loyalty account updates in real time. The mobile app doubles as a payment method, a loyalty card, and an ordering platform, blurring the lines between online and offline engagement.
The business impact has been enormous. By 2025, Starbucks reported nearly 31 million active Rewards members in the U.S., a 15% growth over the previous year. These loyalty members are incredibly valuable to Starbucks – they drove 57% of U.S. company-operated store transactions in Q2 2023. In other words, more than half of all Starbucks sales in the U.S. now come from loyalty members, showing how effective the programme is at engaging customers and driving repeat business. Executives have credited the combination of exclusive perks, convenience, and omnichannel integration for this success. The Starbucks app’s ease of use and the instant gratification of earning and using Stars encourage customers to choose Starbucks more often – even daily – over competitors.
Key takeaways from Starbucks’ case include the value of a mobile-centric loyalty approach and the importance of making the programme frictionless. Starbucks removed barriers to participation (joining is free and simple via app or web, and payment is linked to loyalty) and uses data from the programme to personalise offers (e.g. tailored drink suggestions or double-star days that bring customers back). Australian retailers can emulate Starbucks by integrating loyalty into a mobile app (if applicable) and by ensuring rewards are appealing and easily accessible. The Starbucks case also underlines how loyalty programmes can become a significant revenue driver: with over half of transactions coming from members, the programme not only retains customers but also locks in a large share of their wallet. Retailers in any market can aim for a similar loyalty penetration – for instance, department stores or quick-service restaurants in Australia might seek to have a majority of sales linked to loyalty members by making enrolment nearly automatic and usage beneficial on every visit.
Ulta Beauty, a leading beauty retail chain in the U.S., offers another powerful example through its Ultamate Rewards loyalty programme. Ulta’s programme is a tiered, omnichannel system where customers earn points on every purchase (online or in-store) and can redeem those points for discounts on products. The programme has tier levels (Member, Platinum, Diamond) unlocked by annual spending, with higher tiers gaining extra perks like birthday gifts and bonus points events. Ulta has integrated this loyalty programme across its channels: shoppers see their point balance and personalised product recommendations on the Ulta mobile app and website, and they can redeem rewards whether shopping in-store or digitally. Moreover, Ulta leverages the loyalty data for marketing – members receive tailored emails and app notifications about new products or promotions based on their preferences and purchase history.
The reach and impact of Ultamate Rewards are striking. The programme has over 40 million members, and it is directly tied to Ulta’s financial success. According to Ulta executives, 95% of Ulta Beauty’s sales are made by loyalty programme members. This essentially means almost every Ulta customer is enrolled, and they prefer to identify themselves to reap rewards, which gives Ulta a comprehensive view of nearly all transactions. The loyalty programme has not only driven repeat purchases but also allowed Ulta to personalise experiences, which Nicole Bernhardt, Ulta’s head of loyalty, credits as “a case study on how to do loyalty well.” By analysing receipt-level data (every item bought, frequency, basket size) and engagement data from the programme, Ulta continually fine-tunes its offers and rewards to stay relevant to consumers’ needs.
The Ultamate Rewards case demonstrates the power of high engagement and data-driven personalisation. With 95% of sales coming from members, Ulta can attribute improvements in sales directly to the programme’s initiatives. For example, loyalty data allowed Ulta to launch targeted promotions that increased average basket size and drive frequent visitation, contributing to net sales growth even in a competitive market. For Australian retailers, Ulta’s success emphasises a few best practices: make the loyalty programme inclusive and easy to join (Ulta enrols customers at checkout and via digital channels so that almost everyone becomes a member), ensure it’s truly omnichannel (Ulta’s app is a companion for in-store shoppers as well, not just online shoppers), and leverage the rich data for tailoring the customer experience. Notably, Ulta’s and similar programmes (like Sephora’s Beauty Insider, where ~80% of transactions are by loyalty members) show that when a loyalty programme is well executed, it can virtually become synonymous with the brand experience itself – customers don’t separate “shopping at the store” from “using the loyalty programme,” they are one and the same.
Another U.S. example worth mentioning is Target Circle, the loyalty programme of Target. Target, a general merchandise retailer, designed Circle as a free loyalty programme that operates across its stores, website, and app. Members earn 1% on purchases to redeem later, get exclusive deals, and receive a birthday discount. The programme is integrated with Target’s RedCard (credit/debit card) and weekly ad offers, all accessible via the Target app. Members can even use the app for buy online, pick-up in store (BOPIS) and still earn and use their rewards seamlessly. The omnichannel approach here includes in-app shopping lists, personalised recommendations, and push notifications for local store deals. Target’s loyalty strategy is notable for blending payments, loyalty, and fulfilment options into one customer experience.
While specific financial metrics of Target Circle’s impact are proprietary, Target has credited its digital and loyalty engagement for contributing to sales growth and deeper customer relationships. By 2022, Target Circle had over 100 million members globally, and Target’s CEO highlighted the programme’s role in increasing customer visit frequency and spend per visit through tailored offers. The flexibility and personalisation in Target’s programme (from special coupons to early access sales for members) have been well received. This case underlines that even in a broad retail context (beyond specialty retail like coffee or beauty), omnichannel loyalty can thrive. For Australian big-box or department store retailers, Target’s example suggests that offering simple rewards (like a small rebate on purchases) combined with a rich mobile app experience can drive loyalty at mass scale. It also shows the importance of tying loyalty to omnichannel services like click-and-collect, which are increasingly popular in Australia – loyalty rewards can incent customers to try these convenient fulfilment options and vice versa.
Across Starbucks, Ulta, Target – and indeed others like Sephora (whose loyalty members drive ~80% of sales) – a few common themes emerge. Successful omnichannel loyalty programmes:
Australian retailers can adopt these best practices. In fact, some already are – for example, supermarket programmes like Woolworths Everyday Rewards and Coles Flybuys integrate in-store and online grocery shopping and have very high membership among Australian households. By studying these U.S. cases, local retailers can see the payoff from omnichannel loyalty done right: stronger customer retention, higher average spend, and a wealth of data to drive the business forward.
Implementing an omnichannel loyalty strategy is greatly facilitated by using the right software solution. Today, a number of global SaaS (Software-as-a-Service) platforms offer robust loyalty management capabilities that retailers can leverage instead of building a system from scratch. These platforms typically provide out-of-the-box features for tracking points, managing member accounts, processing rewards in real time, and analysing performance across channels. Below is an overview of several leading loyalty programme solution providers, their key features, pricing (when available), and differentiators:
Salesforce offers a loyalty management module as part of its Customer 360 platform. It is a unified, cross-industry solution that enables the design and tracking of loyalty programmes within the broader Salesforce ecosystem. Features include configurable point accrual and redemption rules, tier management, partner management (for coalition programmes), and built-in analytics via Tableau CRM. A key differentiator is its native integration with Salesforce CRM and Marketing Cloud – loyalty data flows seamlessly into customer profiles and can trigger personalised marketing journeys. Pricing is on the high end: the Starter edition begins at around US$20,000 per month, with the Advanced edition up to US$45,000. Australian retail enterprises already invested in Salesforce may find it a strong fit, especially as part of a broader digital transformation.
Now part of Oracle Cloud Customer Experience (CX), CrowdTwist supports complex programme designs including points, tiers, and experiential rewards. It’s well suited for industries with large customer bases and heavy transaction volumes. Key features include extensive integration options with POS and e-commerce platforms, and powerful analytics using Oracle’s AI tools. Pricing is enterprise-level and custom quoted. Retailers already using Oracle’s ERP, CRM, or commerce tools will benefit from its integration and performance at scale.
Through its acquisition of Emarsys, SAP provides a loyalty add-on that excels at delivering personalised experiences through omnichannel marketing automation. It offers no-code tools for marketers to design campaigns and respond to customer behaviour in real time. Emarsys Loyalty integrates tightly with SMS, email, and even print channels. It is best suited for retailers already on the SAP stack and is priced for enterprise use, typically bundled with other SAP products.
Antavo is a specialist loyalty SaaS provider known for its flexibility and innovation. It supports gamified loyalty mechanics, non-transactional engagement (e.g. rewarding customers for writing reviews or social media activity), and includes options for loyalty kiosks in physical stores. Its no-code platform and strong API support make it ideal for highly tailored loyalty programmes. Antavo is priced more moderately than Salesforce or Oracle, although still enterprise-oriented. It’s a good option for Australian retailers looking for creativity and customisability beyond points-for-purchase.
Annex Cloud combines traditional loyalty features with user-generated content and advocacy tools, such as referrals, reviews, and social media engagement. It offers a unified dashboard for managing loyalty and customer engagement, with a wide range of third-party integrations. Its strength lies in merging loyalty with brand-building. Pricing is customised and aimed at mid- to large-sized retailers. Annex Cloud is especially suited for Australian brands that want to combine loyalty with community and advocacy.
Used globally across airlines, telecoms, and retail, Comarch is known for its large-scale deployment capability. It includes gamification, tiered rewards, and multi-partner coalitions, and can be deployed via SaaS or on-premise. Comarch is ideal for Australian retailers managing complex partnerships or banners and who need a powerful, stable solution for large loyalty ecosystems.
Zinrelo combines omnichannel loyalty technology with strategic consulting. It offers machine learning-based optimisation, real-time analytics, and a scalable pricing model based on usage or membership size. Its flexibility and advisory support make it a strong option for midmarket Australian retailers with limited internal loyalty resources who still want to drive measurable ROI.
A popular choice for SMBs, especially in e-commerce, Smile.io offers simple loyalty functionality – points, referrals, and VIP tiers – through easy integrations with Shopify and WooCommerce. While limited in omnichannel depth, it’s a great starting point for small Australian brands. It follows a freemium model with basic features free and more advanced capabilities available through paid tiers.
The loyalty solution landscape ranges from heavyweight enterprise platforms (Salesforce, Oracle, SAP) to flexible specialists (Antavo, Zinrelo) and plug-and-play tools (Smile.io). When evaluating solutions, Australian retailers should consider:
Enterprise options typically involve strategic investment, but offer deep analytics and loyalty automation. Mid-tier options provide faster time-to-value and flexibility. Whatever the choice, the goal remains the same: to deliver a unified, relevant, and rewarding customer experience across all channels.
To gauge the success of an omnichannel loyalty programme, retailers should track specific key performance indicators (KPIs) and compare them against industry benchmarks or initial baselines. Below are the most important KPIs and what “good” looks like, based on research and top-performing programmes:
This measures the percentage of customers who remain active over a period (often annually) and is a direct loyalty indicator. Loyalty programmes typically boost retention – for example, a 5% increase in customer retention can drive up to a 25% increase in profit. McKinsey research shows top-performing loyalty programmes can see up to 4x higher retention than average.
Benchmark: If your annual repeat rate is 50%, aim to raise this to 60–70% among members.
Tracks how often customers shop with you. Loyalty efforts often aim to increase this – for instance, from monthly to fortnightly visits. Targeted offers (e.g. double points days) are commonly used to drive this KPI.
Benchmark: Loyalty members shop significantly more frequently – 14% increase is common in strong programmes.
Loyalty members tend to spend more per visit due to perceived brand connection or reward maximisation.
Benchmark: 12–18% annual revenue lift from loyalty members is typical.
For example, if non-members average $60 per basket, loyalty members should ideally exceed $70–75.
This includes active usage (e.g. purchases by members) and redemption rates (the portion of rewards/points used). Low redemption may signal poor perceived value or usability issues.
Benchmark:
Enrolment and how much of total revenue is driven by members are key indicators of programme reach.
Benchmark:
Measures long-term financial contribution of a customer. Loyalty should increase CLV by boosting retention and spend.
Benchmark: Mobile and omnichannel loyalty members may show up to 48% higher CLV compared to non-members.
A core executive metric: compare incremental revenue from loyalty against costs (software, rewards, operations).
Benchmark: Successful programmes often return 4–5x ROI.
Example: $1M spent generates $4–5M in incremental sales.
Satisfied loyalty members are often more likely to recommend the brand. High NPS among members suggests strong brand affinity.
Benchmark: Many of the most loyal customers become advocates – over 50% may refer others.
These KPIs give a clear picture of what’s working and what’s not. Retailers should monitor both absolute numbers and trends (e.g. improving repeat rates month over month). Segmenting KPIs by channel can also uncover deeper insights – for example, customers who engage both online and in-store often outperform single-channel users.
A consistent uplift in these KPIs shows the loyalty programme is achieving its goals – stronger retention, higher revenue per customer, increased participation – and delivering true business value.
Omnichannel loyalty programmes have become a pillar of modern retail strategy globally. The Australian retail sector, like the U.S. and Europe, is experiencing growing consumer demand for more integrated and rewarding shopping experiences. The case studies and insights discussed are highly relevant locally, where major retailers—from supermarkets to airlines—are investing in loyalty, and Australian shoppers demonstrate strong uptake.
While global examples provide a framework, Australian retailers should tailor loyalty programmes to local behaviours and preferences. For instance, align rewards with Australia-specific events (e.g. Boxing Day sales) or lifestyle trends (outdoor adventures, sustainability). If your customer base enjoys the outdoors, consider experiential rewards like those used by The North Face in the U.S.
Australian consumers commonly shop across online and in-store channels. Click-and-collect is particularly popular, so loyalty points and rewards must apply to all fulfilment methods. Whether the customer buys online for delivery or pickup, or visits a Westfield store, the experience should be consistent.
Australia already has successful coalition loyalty programmes (e.g. Flybuys, Everyday Rewards). Retailers can explore smaller cross-brand partnerships to expand loyalty utility—for example, a fashion retailer partnering with a local café. Also consider tying loyalty into financial tools, as many Australians earn loyalty points via credit cards (e.g. CommBank Awards).
Australia has high smartphone penetration. Retailers should offer mobile apps or mobile wallet integrations (e.g. Apple Wallet, Google Wallet) for loyalty. Programmes like 7-Eleven’s Fuel App show local success by combining loyalty, offers, and utility (e.g. fuel price locks). Include QR/barcode scanning, digital receipts, and NFC options for convenience.
McKinsey reports show that many loyalty programmes suffer from low awareness. Australian retailers should invest in clear in-store and digital messaging, staff training, and multi-language support where relevant. Showcasing social proof (“Join 1M Australians”) and educating users on benefits helps boost uptake.
Keep it relevant with seasonal campaigns (e.g. extra points during footy finals), community tie-ins (e.g. point donations to bushfire relief), and new feature rollouts. Global brands like Sephora refresh regularly with gamified challenges and new redemption options—Australian retailers should adopt a similar cadence.
Omnichannel loyalty is no longer optional—it’s a strategic lever for building deeper customer relationships and long-term brand equity. For Australian retailers, the case is clear: investing in an omnichannel loyalty programme delivers sustained gains in retention, engagement, and revenue.
By aligning the programme with clear business goals, choosing the right tech platform, and optimising based on data, retailers can unlock the full value of customer loyalty. As shown by Starbucks, Ulta, and Target, loyalty can account for the majority of sales when executed well. Locally, programmes like Woolworths Everyday Rewards and Coles Flybuys are proving this model works in Australia too.
Ultimately, loyalty is more than points—it’s a customer expectation. When delivered well, it becomes a powerful competitive advantage in an increasingly crowded market.