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Big data gets bigger: Supermarkets approaching 10 million FlyBuys or Everyday Rewards cardholders

Source: Roy Morgan Single Source July 2008 - June 2013, average yearly sample n = 19,480. Base: Australians 14+

“Sure, you can have some of my personal information—but what do I get in return?” Half of Australians (14+) now have a FlyBuys or Everyday Rewards card, the latest research from Roy Morgan shows.

Supermarket giants Coles and Woolworths now have at least 9.5 million Australian consumers (and potentially their contact information, visitation patterns, spending habits and product preferences) on file between them.

Despite relaunching and receiving a big jump in the past year, Coles’ FlyBuys still trails its rival, with 33% of total consumers compared with 36% who have an Everyday Rewards card with Woolworths.

After just three years in the field, in 2010 Everyday Rewards overtook teenaged FlyBuys as the most widely held loyalty card. FlyBuys remained on a popularity plateau until April 2012 when Coles increased the points-per-dollar and trialled the ‘my5’ promotion which—although criticised for its complexity—clearly helped stimulate recruitment: from June 2012 to June 2013, the proportion of Australians with FlyBuys jumped from just over 1 in 4 (26%) to 1 in 3 (33%).

However Everyday Rewards has maintained the lead with a smaller, but still significant, rise from 32% to 36% over the period. 

Australians with a Supermarket Loyalty Card

 

Warren Reid, Group Account Manager – Consumer Products, Roy Morgan Research, says:

“Although FlyBuys made some significant changes to their loyalty program in 2012 and was rewarded with a sharp increase in cardholder numbers, Everyday Rewards remains the more common scheme among consumers.       

“Flybuys and Everyday Rewards provide the supermarkets with important information about purchase behaviour. Clearly, most consumers are happy to make this trade, providing personal data in exchange for tangible benefits via a convenient and easy to manage process.

“However these loyalty cards can only provide information when scanned, and even then only about in-store consumer activity. So-called ‘big data’ really needs to be anchored to deeper, broader consumer profiling and market segmentation to be of any real value.

“Roy Morgan’s new psychographic classification system Helix Personas does this. When anchored to Helix, the information provided during membership registration instantly defines each consumer’s Persona—and therefore his or her likelihood of product preferences, household size, attitudes to in-store and online shopping and media habits.  

“People in the Today’s Families community of young families in outer suburbs are the most likely to have a FlyBuys card. These Aussies are on relatively high incomes, but acutely feel the stresses of mortgages, childrearing costs and everyday household expenses.”

For comments or more information please contact:

Warren Reid, Group Account Manager — Consumer Products
Office: +61 (3) 9224 5161
Email: warren.reid@roymorgan.com

About Roy Morgan Research

Roy Morgan Research is the largest independent Australian research company, with offices in each state of Australia, as well as in New Zealand, the United States and the United Kingdom. A full service research organisation specialising in omnibus and syndicated data, Roy Morgan Research has over 70 years’ experience in collecting objective, independent information on consumers.

In Australia, Roy Morgan Research is considered to be the authoritative source of information on financial behaviour, readership, voting intentions and consumer confidence. Roy Morgan Research is a specialist in recontact customised surveys which provide invaluable and effective qualitative and quantitative information regarding customers and target markets.

Margin of Error

The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.

Sample Size

Percentage Estimate

40%-60%

25% or 75%

10% or 90%

5% or 95%

5,000

±1.4

±1.2

±0.8

±0.6

7,500

±1.1

±1.0

±0.7

±0.5

10,000

±1.0

±0.9

±0.6

±0.4

20,000

±0.7

±0.6

±0.4

±0.3