Future of fly buys

[markh]

If anyone has an old Flybuys letter with the GM's name put it through a google search and see where they have turned up.

Peter Kempster:

Indue Website

Peter Kempster B.Com.(Hons), MBA(Distinction), FASA, ACA, MAICD
Director
Peter Kempster joined the Board in August 2008. He is the CEO of Police Credit, a position he took up in 2007 following 13 years with NAB. At NAB, he served on the leadership team of the Australian Bank and held the roles of GM Payments, GM National Custodian Services, and GM Loyalty Pacific (Fly Buys). He was also a Director of National Nominees Ltd, HICAPS Ltd, Loyalty Pacific Ltd, a VISA Asia Pacific Risk Advisor and Deputy Chairman of the Australian Custodial Services Association. Prior to NAB Mr Kempster worked with consultants McKinsey and Co and Arthur Andersen and Co.

So now CEO of Police Credit & board member of some electronic transactions company

 

[Mike A]

I read Fly Buys being compared with the Woolworths credit card system. But FlyBuys is just a loyalty card. I shop at Coles and hand over my Fly Buys and my AMEX. I score points under 2 cards for the one transaction. (used to be like a poker player when I also had a ColesMyer shareholder card).

I think Fly Buys is a great 'no cost' system, and have just returned from a trip to Sydney on the points

 

[straitman]

I read Fly Buys being compared with the Woolworths credit card system. But FlyBuys is just a loyalty card. I shop at Coles and hand over my Fly Buys and my AMEX. I score points under 2 cards for the one transaction. (used to be like a poker player when I also had a ColesMyer shareholder card).

I think Fly Buys is a great 'no cost' system, and have just returned from a trip to Sydney on the points

Mike A,

Welcome to AFF.

Dare I ask how long it took to earn enough Fly Buys points to get a return trip to Sydney (and from where) :?:

 

[Mike A]

How long? I seem to fly (domestic) every year, and have a couple more accumulated. Okay as a payment for swiping my card as I wait at the register with nothing else to do! (and I don't buy Shell petrol)

I am surprised that with the extensive database that FlyBuys could access, that I have never received targetted advertising

 

[serfty]

... I am surprised that with the extensive database that FlyBuys could access, that I have never received targeted advertising

I do, the statement often has specific my account only bonus promotions either printed on it or attached.

 

[oz_mark]

I do, the statement often has specific my account only bonus promotions either printed on it or attached.

Ditto. Or at least I used to get them. Haven't seen such a promo for a while.

 

[SnowYeti]

Wonder if anyone has heard anything about fly buys? I don't even carry it with me anymore. Decided it wasn't worth it, after all these years!

 

[serfty]

I had some points expiring last month - redeemed them for $80 in gift cards.

 

[drron]

I'm still redeeming the odd $20 voucher.however since the QFF tie up with woollies we are doing very little shopping at Coles now.Unless they come up with something new it does appear it will slowly fade away.

 

[odysseus]

Coles claimed their gift card offer (tied into flybuys.) was extended by popular demand, though I'm somewhat skeptical of that myself - personally, I'm rating it most useless promotion this year. No life anywhere else.

 

[Flying Fox]

Like odysseus, I think that Coles didn't extend due to popular demand. I would guess that the $ value of cards given away was much lower than they had budgetted for.

I still use my Flybuys card to claim gift vouchers.

I will probably fully switch to Woolworths when you can start getting QFF points for petrol purchases.

 

[thewinchester]

I'm a loyal Coles shopper, as the Woolworths stores in my area are dreadful. I score enough to take out about $250 worth of gift vouchers every 12-18 months so its handy to get something out of it. Better than a poke in the eye.

 

[leemin]

August, I write to Wesfarmers via their website:
"I would like to suggest that Wesfarmers, through Loyalty Pacific and the FlyBuys program look at matching two initiatives currently offered by Woolworths. The first is 'e-vouchers' instead of fuel discount vouchers printed on receipts. This could be linked to the customers existing FlyBuys card, similar to the 'Everyday Rewards' card issued by Woolworths and is much more conveinient for the customer. Secondly, I would like to suggest that Wesfarmers enter into discussions with Velocity Rewards - the loyalty program of Virgin Blue - to enable FlyBuys customers to link their FlyBuys account to their Velocity account and directly earn Velocity points by shopping at Wesfarmers' businesses. Both of these suggestions arise out of my recent consideration of changing both my shopping habbits (from Coles/Target etc. to Woolworths/Big W etc.) and also moving across to the Qantas Frequent Flyer program from Velocity; as a result of the Woolworths offer."

To my complete shock, I received an email from Ian McLeod:

"Thank you for your email addressed to Wesfarmers regarding the loyalty programs at Coles.
*
In the early stages of the Coles turnaround, we concentrated on our core customer offering which consisted of product quality, selection and availability, store presentation, convenience, service and a great value proposition.
*
Whilst achieving all of these things will be a continuous journey, the turnaround is going well, meaning that we are now in a position to devote some more time and focus to other elements of the business, such as our customer loyalty programs.
*
FlyBuys has proved to be very successful over the years and a significant number of our customers are still actively participating in this program, as well as our fuel discount offer. Recently, we have started to leverage FlyBuys more extensively and so far these activities have been well received by our customers.
*
Over the next phase of our turnaround we will continue to invest in our loyalty programs with some very exciting ideas in the pipeline. Although we are unable to confirm our exact plans at this stage, I can assure you that the ideas you have provided have already been brought to the table to be considered as part of our future program reviews.
*
Once again, thank you for taking the time to write to us. I appreciate your support over the years and do hope you will continue to shop with us.
*
Yours sincerely
*
Ian McLeod
Managing Director"

Interesting that nothings happened yet.

 

[leemin]

August, I write to

*wrote. On my iPhone.

 

[Nigelinoz]

Interesting article in Business Spectator today.

Coles has bought out National Australia Bank Ltd's stake in Australia's oldest and largest loyalty program, FlyBuys, according to a report by the Australian Financial Review.
The FlyBuys scheme, established by Coles, NAB and Shell in 1994, has 10 million cardholders but has long struggled to return value to its owners.
Coles hopes to leverage the loyalty program's customer data on spending patterns and individual preferences, while there is some speculation the company will seek to partner with a financial services company to attach a payment card with the loyalty program, the report said.

Cheers
N'oz

 

[oz_mark]

Interesting turn of events - they must have had a rethink of where they were going in the last twelve months, as they were looking to introduce a new program.

As for the card thing, there is already the Source card that gives FB points. If they are going to produce a new card, I would be surprised if they moved away from GE, but who knows.

 

[Nigelinoz]

Interesting turn of events - they must have had a rethink of where they were going in the last twelve months, as they were looking to introduce a new program.

As for the card thing, there is already the Source card that gives FB points. If they are going to produce a new card, I would be surprised if they moved away from GE, but who knows.

Yeah,looks like the Woolworths/Qantas alliance has bitten them hard,will be interesting to see what happens from here.
Cheers
N'oz

 

[medhead]

Yeah,looks like the Woolworths/Qantas alliance has bitten them hard,will be interesting to see what happens from here.
Cheers
N'oz

I not sure after recently reading about the relative performances of the companies. Woolworths seems to be struggling a bit and Coles increasing market share. Obviously the Woolies/QFF tie up is much better but it doesn't seem to be reflected in company performance.

 

[Nigelinoz]

I not sure after recently reading about the relative performances of the companies. Woolworths seems to be struggling a bit and Coles increasing market share. Obviously the Woolies/QFF tie up is much better but it doesn't seem to be reflected in company performance.

I agree with what you are saying about the relative performance of the two companies but my comments were mainly about the success of the Woolies/Qantas tie up as regards a loyalty program against Fly Buys which has been around for years,has 10 million members but offers virtually zero rewards for average weekly spending on groceries,fly Buys is in need of a drastic overhaul IMO and hopefully this may be a sign that Coles has recognised that .
Cheers
N'oz

 

[medhead]

I agree with what you are saying about the relative performance of the two companies but my comments were mainly about the success of the Woolies/Qantas tie up as regards a loyalty program against Fly Buys which has been around for years,has 10 million members but offers virtually zero rewards for average weekly spending on groceries,fly Buys is in need of a drastic overhaul IMO and hopefully this may be a sign that Coles has recognised that .
Cheers
N'oz

Totally agree flybuys is pretty pointless. Just I'm not sure they have been bitten hard because of the loyalty program. Well, maybe, only that isn't reflected in the company performance. Great that they appear to be overhauling flybuys. I just think this will happen as a company improvement rather than a need to compete with EDR.