Image: Hello Again
A consumer in Austria uses an average of 4.4 customer loyalty programs – including both physical customer cards and digital versions. Almost two thirds of Austrians use such a program at least once a week, and the trend is rising.
The need for information is also greater than ever: 65 percent of consumers would like to be informed about offers and news at least once a week, an increase of 16 percent compared to the previous year.
These are the results of the Loyalty Report from the Leonding-based start-up hello again, which specializes in customer loyalty. In March, more than 1500 people in the DACH region (Germany, Austria and Switzerland) were asked about their shopping behavior and the use of customer loyalty programs. We worked together with the Austrian trade association, the Swiss Retail Federation and the German Federal Association for E-Commerce and Mail Order, which enables a comparison between the countries.
Customers spend more money
95.5 percent of those surveyed are already using such customer loyalty programs. Above all, they expect savings in the form of discount campaigns or credits. “The high inflation has led to a boom in customer loyalty programs,” says Rainer Will, managing director of the trade association. He sees a “win-win situation” because retailers benefit from higher sales: customers who use a loyalty program spend an average of 28.4 percent more money in the store.
In Austria, customer loyalty programs are mainly used in supermarkets and drugstores, fashion shops and in the furniture trade. The CEO of hello again, Franz Tretter, sees potential in pharmacies and service providers such as hairdressers and beauticians: Customers would like to take part in loyalty programs here.
One trend can be seen across countries: the physical customer card made of plastic is being increasingly exchanged for a digital solution on a smartphone. More than 78 percent of consumers already use websites, apps or email newsletters to find out about offers. This has long since ceased to be just a phenomenon among young people: “65 percent of those over 55 also use a digital solution,” says Franz Tretter. The clear advantage is constant availability and a simple overview. Almost ten percent of those surveyed have concerns about data protection.
Sustainability is becoming increasingly important
However, the majority of consumers in Austria still want to be informed via flyers, while in Switzerland 40 percent already want to be contacted via digital channels. At the same time, environmental awareness is higher in Austria than in neighboring countries.
According to the study, 55 percent would prefer a company with a “Green Loyalty Program” – especially Generation Z. This could include a recycling or repair service, for example. A discount for sustainable shopping behavior would also be conceivable. A fifth of those surveyed would like to avoid paper waste and would like digital invoice filing.
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