Loyalty programs in Australia typically cost more, and deliver less, than many realize. To reclaim the loyalty value that is slipping through their fingers, savvy business leaders are starting to rethink what loyalty means for their customers—and for their business. Along the way, they are creating new strategies that unlock loyalty’s untapped potential.

1. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Strategy | Consulting | Digital | Technology | Operations
SEEING BEYOND
THE LOYALTY
ILLUSION:
IT’S TIME YOU INVEST
MORE WISELY
Australia

2. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
PAINS
GROWING
INVESTMENTS
IN LOYALTY
ARE BOOMING.
Accenture found that
members of loyalty programs
generate between 12 and 18
percent incremental revenue
growth per year than non-
members.4 However, there are
several indications that loyalty
investments in their current
form are not generating all the
value they could. Our recent
research confirms that for
growing numbers of
consumers, many loyalty
investments are simply
missing the mark.

3. Businesses spend billions each year for
non-cash loyalty incentives.
Even more — and potentially greater — costs are
hidden in the “loyalty” line item within programs
that simmer in the background, consuming
investments at a steady pace, year after year.
Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
THE COSTOF
LOYALTY
LOYALTY PROGRAMS TYPICALLY
COST MORE, AND DELIVER LESS,
THAN MANY REALIZE.

4. Accenture has found that
members of loyalty programs
generate between 12—18%
incremental revenue growth
per year than non-members.
BUT…
Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
DOES LOYALTY
WORK?A LOOK AT THE
NUMBERS BEGS THE
QUESTION: GIVEN THE
HIGH COST, IS THE
BUSINESS CASE FOR
LOYALTY INVESTMENTS
SOUND? THE ANSWER:
IT DEPENDS.

5. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
DOES LOYALTY
WORK?A LOOK AT THE
NUMBERS BEGS THE
QUESTION: GIVEN THE
HIGH COST, IS THE
BUSINESS CASE FOR
LOYALTY INVESTMENTS
SOUND? THE ANSWER:
IT DEPENDS.
IN AUSTRALIA:
79% admit they now retract their
loyalty more quickly than they did
three years ago.
16% demonstrate a negative or non-
existent reaction to companies’
loyalty efforts. And that number is
rising, particularly among younger
consumers who will be critical to
driving revenue growth in the years
ahead.

6. Justify every investment. Identify and
shut down programs that dilute margin.
Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
LOYALTY
REINVENTEDAS COMPANIES
STRUGGLE TO FIND
CAPITAL TO DRIVE
GROWTH, THEY'RE
TAKING A HARD LOOK
AT NEW STRATEGIES TO
UNLOCK LOYALTY'S
TRUE POTENTIAL.
SO HOW CAN
COMPANIES MAXIMIZE
LOYALTY'S VALUE? 1

7. Boost acquisition through retention.
Leverage connections of existing customers
to acquire new ones.
Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
LOYALTY
REINVENTEDAS COMPANIES
STRUGGLE TO FIND
CAPITAL TO DRIVE
GROWTH, THEY'RE
TAKING A HARD LOOK
AT NEW STRATEGIES TO
UNLOCK LOYALTY'S
TRUE POTENTIAL.
SO HOW CAN
COMPANIES MAXIMIZE
LOYALTY'S VALUE? 2

8. Learn Millennials’ loyalty language.
Millennials are less swayed by loyalty
programs. Understand what they like, and
what types of promotions they will embrace.
Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
LOYALTY
REINVENTEDAS COMPANIES
STRUGGLE TO FIND
CAPITAL TO DRIVE
GROWTH, THEY'RE
TAKING A HARD LOOK
AT NEW STRATEGIES TO
UNLOCK LOYALTY'S
TRUE POTENTIAL.
SO HOW CAN
COMPANIES MAXIMIZE
LOYALTY'S VALUE? 3

9. Encourage customer advocacy.
Customers that recommend brands to
others are key. Invest in strengthening this
loyalty behavior.
Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
LOYALTY
REINVENTEDAS COMPANIES
STRUGGLE TO FIND
CAPITAL TO DRIVE
GROWTH, THEY'RE
TAKING A HARD LOOK
AT NEW STRATEGIES TO
UNLOCK LOYALTY'S
TRUE POTENTIAL.
SO HOW CAN
COMPANIES MAXIMIZE
LOYALTY'S VALUE? 4

10. View loyalty as a team sport. Capture,
analyze and act on customer feedback
across silos. Work with partners to share
expenses associated with loyalty.
Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
LOYALTY
REINVENTEDAS COMPANIES
STRUGGLE TO FIND
CAPITAL TO DRIVE
GROWTH, THEY'RE
TAKING A HARD LOOK
AT NEW STRATEGIES TO
UNLOCK LOYALTY'S
TRUE POTENTIAL.
SO HOW CAN
COMPANIES MAXIMIZE
LOYALTY'S VALUE? 5

11. LEARN MOREabout how to re-evaluate your loyalty investments with our
full report:
Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Seeing beyond the
loyalty illusion:
It’s time you invest more wisely
@AccentureStrat Follow us on LinkedIn