Trust In, Trust Out: Australia’s Loyalty Reckoning
Loyalty in Australia is no longer a given—it’s on trial. Members expect more than points and tiered benefits; they demand trust, transparency and genuine connection. When status rules change without clear perks, when AI operates behind a curtain of mystery, and when the loyalty market swells past US $1.2 billion, the brands that thrive will be those that evolve from transactional to relational.
Consider the recent overhaul of Virgin Australia’s Velocity program. Overnight, qualifications shifted from miles and cabin class to pure spend, making Gold status up to four times harder to earn—without enhancing benefits. The result? A wave of member frustration and eroded goodwill. It’s a wake-up call: loyalty isn’t just earned—it must be maintained through consistency and value that members can see, feel and use.
Meanwhile, technology is reshaping expectations. Two-thirds of Australian loyalty members now recognize AI at work in their experiences—whether it’s chatbots handling queries or algorithms recommending rewards. But awareness alone isn’t enough. Members crave clarity: how is their data used? Who makes the decisions? Without transparent AI practices, brands risk suspicion, not satisfaction.
And the stakes have never been higher. With over 86% of Australians enrolled in at least one program and the market on track to hit US $1.2 billion this year, brands must go beyond isolated promotions. They need integrated ecosystems where every touchpoint—email, SMS, in-app, in-venue—works together to reinforce trust and deliver meaningful outcomes.
At Buzz, we’ve distilled these insights into the CORE™ Loyalty framework:
Community & Opportunity: Cultivate partnerships and experiences that enrich members’ lives—through local collaborations, exclusive events and co-created offerings.
Reward & Enjoyment: Design perks that feel earned—timely, relevant and aligned with what members truly value, whether it’s early access, surprise moments or tiered recognitions.
Involvement: Move past engagement metrics to co-design. Invite members to shape program rules, pilot AI-driven features and provide ongoing feedback—turning them from passive recipients into active partners.
Action Steps for Brands:
Audit Consistency: Review any recent program changes for clarity and fairness. Communicate the rationale and new benefits directly to members, with examples of real value.
Demystify AI: Publish an AI transparency statement. Explain which data points drive personalisation and how members can control those settings.
Build Ecosystems: Map every member journey point—from sign-up to redemption—across channels. Identify gaps where trust can break down and plug them with cohesive experiences.
Co-Create: Launch a member advisory panel. Bring top members into quarterly workshops to brainstorm perks, test new tiers and evaluate communication strategies.
Measure Trust: Go beyond NPS and engagement rates. Track opt-in rates for AI features, participation in advisory panels and sentiment around program changes.
Australia’s loyalty landscape is entering a new era—one where even Clubs and pubs must look beyond drink deals and game points to build lasting trust.
Clubs & Pubs Call-Out:
Swap generic drink promotions for consistent, value-focused offers that members understand and anticipate.
Use visit data to personalise midweek specials—then explain how those choices are made to build transparency.
Turn in-venue interactions (feedback cards, QR polls) into ecosystem triggers for emails and SMS updates that reinforce community.
The next wave won’t reward venues clinging to old mechanics; it will elevate those that earn loyalty through genuine insight, accountability and co-creation. The question isn’t just how many pints you pour—it’s how deeply members trust and champion your venue. Are you ready to lead this loyalty reckoning in Clubs and pubs?
For more articles and helpful hints head to From the Vault — Buzz Consultants