Introduction: Loyalty in the Omnichannel Era

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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.

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Defining Omnichannel Loyalty and Its Benefits

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.

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Key Considerations and Steps for an Omnichannel Loyalty Strategy

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:

1. Define Clear Goals: Begin by determining what you want to achieve. Is the primary objective to increase customer retention, boost repeat purchase frequency, raise average spend, or gather richer customer insights? Being specific about targets (e.g. “increase repeat purchase rate by 15% in 12 months”) will shape your programme design and help you measure success. Many loyalty programmes aim to drive both engagement and data collection; clarify the priority for your business.
2. Ensure Executive Alignment and Resources: At the executive level, it’s crucial to secure buy-in across marketing, sales, and IT departments. Omnichannel loyalty touches multiple systems (POS, e-commerce, CRM, etc.) and needs cross-functional support. Establish a governance structure for the programme and allocate sufficient resources (budget for technology and rewards, staff to manage the programme, etc.) from the outset.
3. Choose the Right Technology Platform: Legacy systems can be a barrier to omnichannel integration. Selecting a modern loyalty management platform or upgrading IT systems is often necessary to unify data across channels. Key capabilities to look for include real-time data syncing (so points update instantly whether the purchase is online or in-store), an integrated customer database for single customer view, and open APIs to connect with mobile apps, e-commerce platforms, and store systems. A mobile app is crucial in many cases, as it provides customers an easy way to track rewards, receive offers, and interact on the go. Ensure the chosen platform can handle the scale of your customer base and the complexity of your programme (e.g. multiple reward tiers, partner earning opportunities) without performance issues.
4. Collect and Centralise Customer Data: Implement systems to gather customer data across all channels in one place. This includes purchase history from point-of-sale and online transactions, as well as engagement data like email responses or app usage. A unified data warehouse or CRM integration will allow you to analyse behaviour patterns. Data privacy is also paramount – ensure compliance with Australian data regulations (e.g. APP/GDPR if applicable) and be transparent with customers about data usage in exchange for personalised rewards.
5. Customer Segmentation and Personalisation: Use the collected data to segment your customers based on behaviour and preferences. For example, segments might include high-frequency shoppers, high spenders, or customers who only shop seasonally. By understanding these segments, you can tailor the loyalty experience – offering personalised promotions or product recommendations to each group. Personalisation is a core strength of omnichannel loyalty programmes. Retailers can deliver targeted, real-time campaigns (such as a special offer via SMS when a lapsed customer enters a mall near your store) that resonate more than one-size-fits-all rewards. This relevance drives higher engagement and shows customers that you “know” them.
6. Design an Enticing Reward Structure: Craft a reward system that provides clear value and encourages the behaviours that meet your goals. Many programmes use a points-based system (e.g. earn 1 point per dollar spent) with thresholds for rewards, possibly complemented by tiers (status levels like Silver, Gold, Platinum) to reward the most loyal customers with extra perks. Include a mix of incentives: discounts or cash-back vouchers are popular, but consider experiential rewards (early access to new products, exclusive events, or partner benefits) to differentiate your programme. Importantly, ensure the rewards can be earned and redeemed across all channels – e.g., an online customer can redeem a free item coupon in-store. Simplicity is key: customers should easily understand how to earn and spend their rewards, and see the benefit of engaging more with your brand.
7. Omnichannel Integration and Consistency: This is the heart of the strategy – make the loyalty experience identical (or at least complementary) no matter where the customer interacts. Seamless omnichannel consistency means a customer who signs up in-store can immediately use their membership online, a promotion sent via email can be applied in the app, and their point balance updates in real time after any purchase. Train store staff to promote and handle the loyalty programme, and ensure your website/app prominently features loyalty information. Every touchpoint (receipts, emails, website banners, etc.) should remind the customer of their membership status and next reward, reinforcing engagement. In Australia, many quick-service and retail brands have embraced this – for instance, customers of Boost Juice or Nando’s can earn and redeem via physical stores or mobile ordering seamlessly, indicating that consistency is now expected.
8. Promotion and Enrolment Drive: “Build it and they will come” does not apply to loyalty programmes – you must actively promote it. Integrate loyalty programme enrolment into both online and offline customer journeys. For example, prompt website visitors to join at checkout, have cashiers invite shoppers to sign up via a QR code or an SMS link, and use social media to highlight the benefits for members. Market the programme’s value proposition: exclusive member-only deals, birthday rewards, or whatever perks you offer that would entice sign-ups. Early incentives (like a join bonus or discount on first purchase for new members) can accelerate adoption. The goal is to capture a large share of your customer base into the programme, since a bigger enrolment means more data and more repeat business potential.
9. Measure, Monitor, and Optimise: Once launched, treat the loyalty programme as an evolving product. Establish key performance indicators (KPIs) (discussed in detail in a later section) such as enrolment rate, active participation, retention rate, and incremental sales lift. Monitor these regularly – most loyalty platforms will provide dashboards to track metrics. Analyse what promotions or rewards are driving engagement and which are underperforming. Use A/B testing where possible (e.g. test different offer types to see which increases customer spend more). Customer feedback is valuable too: consider surveying members about their satisfaction with the programme. Continuously refine your strategy – whether that means adjusting point expiration policies, adding a new reward partner, or improving the user interface of your app. Leading retailers update their loyalty programmes frequently with new features or rewards to keep the experience fresh. Iteration will ensure the programme stays relevant and effective over time.
10. Ensure Organisational Readiness: Finally, an often overlooked consideration is operational readiness. Make sure your staff are trained on the loyalty programme details (so they can explain it to customers and troubleshoot issues), and that customer support is prepared to handle inquiries related to the programme (lost cards, points not appearing, etc.). Have processes for handling exceptions (like merging accounts or retroactively crediting points if a customer forgot to identify themselves). Also, prevent siloed channel thinking within the organisation – for example, avoid separate online vs. store incentives that might conflict; all teams should work from a unified loyalty strategy playbook.

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.

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U.S. Case Studies: Omnichannel Loyalty in Action

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.
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Case Study 1: Starbucks Rewards – Brewing Loyalty Across Channels

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.
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Case Study 2: Ulta Beauty – Ultamate Rewards Driving Sales and Engagement

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.
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Case Study 3: Target Circle – Loyalty in a Mass Retail Environment

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.
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Lessons from the Case Studies

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:

• Achieve deep penetration (large member base, high percentage of sales from members) by providing clear value and making enrolment easy.
• Leverage technology, especially mobile apps, to bridge online and offline customer experiences.
• Use data intelligently to personalise offers, which increases customer engagement and spend. For instance, Starbucks’ personalisation or Ulta’s data-driven campaigns contributed to notable sales uplifts.
• Continually innovate the programme with new features (e.g., Starbucks adding order-ahead, Sephora adding gamification challenges) to keep customers interested over the long term.

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.

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Global SaaS Solutions Enabling Omnichannel Loyalty

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:

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Salesforce Loyalty Management

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.

Oracle CrowdTwist (Oracle Loyalty Cloud)

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.

SAP Emarsys Loyalty (SAP Customer Loyalty)

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 Loyalty Cloud

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

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.

Comarch Loyalty Management

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

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.

Smile.io

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.

Summary

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:

• Integration capabilities with existing systems (POS, CRM, e-commerce)
• Scalability to handle growing member bases and real-time data sync
• Customisation flexibility (e.g. gamified mechanics or cross-brand rewards)
• Support and compliance in local markets

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.

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Key Benchmarks and KPIs for Loyalty Programme Success

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:

Customer Retention Rate

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.
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Visit / Purchase Frequency

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.
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Average Spend per Customer (Basket Size)

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.
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Engagement Rate of Members

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:

• Reward redemption: Aim for 20–30% (top performers can reach >50%)
• Active engagement rate: Target >30%+
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Membership Growth and Penetration

Enrolment and how much of total revenue is driven by members are key indicators of programme reach.

Benchmark:

• Aim to enrol the majority of regular customers within the first year.
• Sales penetration: >50% of transactions from members (Starbucks = 57%, Ulta = 95%, Sephora = 80%+)
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Customer Lifetime Value (CLV)

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.
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Return on Investment (ROI)

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.
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‍Net Promoter Score (NPS) / Member Satisfaction

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.

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In Summary

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.

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Best Practices and Conclusion: Applying Insights to the Australian Market

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.

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Best Practices for Australian Retailers:
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Localise and Personalise

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.

Ensure Seamless Integration Across Channels

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.

Leverage Partnerships and Coalitions

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).

Adopt a Mobile-First, Tech-Savvy Approach

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.

Market the Programme Clearly and Widely

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.

Regularly Refresh the Programme

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.

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Conclusion

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.

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Sources

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• Anna Wolfe, “Starbucks Reaps Rewards of Reinvention Plan,” Hospitality Technology (8 May 2023)
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