If you’ve ever wondered whether that Flybuys or Everyday Rewards card in your wallet is actually worth the trouble, you’re far from alone – and new Australian research suggests the honest answer is genuinely, “it depends.”

Just how common are loyalty cards in Australia?

Loyalty programs have become close to universal here. Recent industry data shows around 86 to 90 per cent of Australians are signed up to at least one loyalty program, with the average person juggling 4.2 memberships across supermarkets, fuel, frequent flyer schemes and retail chains. Flybuys and Everyday Rewards, the two supermarket giants, each boast more than 9 million active members.

But here’s the catch: only around half of us actually engage with these programs in any meaningful way. Simply carrying the card isn’t the same as genuinely benefiting from it, and new research from Edith Cowan University helps explain exactly why.

What the research found

The study, led by ECU Professor of Marketing and Service Science Sanjit Roy, analysed survey data from more than 800 Australian supermarket customers to understand what actually drives people to engage with loyalty programs, and what determines whether that engagement translates into genuine loyalty to a retailer.

Professor Roy said many of us simply don’t have the time to properly weigh up what we’re getting against what we’re giving up every time we’re prompted to scan a rewards card at the checkout. Retailers understand this well, and use that moment at the till, whether from a staff member or a self-serve prompt, to reinforce the habit of scanning, regardless of whether it’s actually paying off for the customer.

He raised a pointed question worth sitting with: if you’re earning one point per dollar spent, and it takes 2,000 points to receive a $10 voucher, is handing over your personal shopping data really a fair trade, particularly when the discounts on offer often aren’t genuinely personalised to your own buying habits?

Why some people benefit more than others

According to Dr Saalem Sadeque, Course Coordinator and Lecturer in Marketing at ECU, one of the biggest factors in whether a loyalty program actually pays off comes down to something surprisingly simple: your capacity to wait.

If you can predict an item you regularly buy is likely to go on discount soon, and you have the flexibility to hold off and buy in bulk when it does, you can genuinely benefit. But if your budget is tight enough that you need to buy essentials the moment you need them, regardless of price, you’ll often miss out on those discounts entirely, despite being just as loyal to the retailer.

The research found engagement with loyalty programs depends on a genuine combination of factors working together: trust in the retailer, a sense of commitment between customer and retailer, perceived real benefit, and the practical ability to either wait for a good deal or shop around across multiple retailers to find one. No single factor determines whether a program works for you. It’s the combination that matters.

What this means for retailers, and for you

The researchers noted that Australian supermarkets have faced growing scrutiny over pricing transparency, including recent advice from the ACCC urging greater clarity in how prices are set and communicated. Professor Roy said transparency, genuine customer service and consistent follow-through on brand promises all matter more to building real customer trust than the loyalty program itself.

He also pointed to a broader shift retailers should be making: using the data they already collect to genuinely personalise the value on offer, rather than treating customers as an anonymous data point. Dr Sadeque added that retailers who take the time to understand what their customers actually value, and build loyalty offers around that, are far more likely to see genuine, lasting engagement in return.

How to actually get value from your loyalty card

Based on this research and broader guidance from Australian consumer finance experts, here’s how to make sure your loyalty card is genuinely working for you, rather than just working for the retailer:

Activate offers before you shop, not after. Both Flybuys and Everyday Rewards run rotating bonus-point promotions through their apps, sometimes offering significantly boosted points on specific categories for a limited time, but these generally need to be switched on manually rather than applying automatically.

Don’t let points loyalty override genuine price comparison. Sticking exclusively to one supermarket to chase points can mean missing better prices or specials elsewhere. It’s worth checking both major programs periodically rather than assuming loyalty pays off by default.

Understand what your points are actually worth. Standard supermarket points typically convert at a fairly modest rate, but many programs allow conversion into frequent flyer points, which can sometimes deliver considerably more value if you’re a regular traveller.

Consider whether a paid membership tier suits your household. With cost-of-living pressures pushing more Australians to seek out savings wherever they can, some paid subscription options now offer stronger overall value than the free programs, particularly for households doing a large, regular weekly shop.

Be honest about your own capacity to wait. If your budget allows some flexibility around timing purchases, use it. If it doesn’t, don’t feel like you’re doing something wrong by prioritising getting what you need, when you need it, over chasing a discount that may never quite arrive in time.

What it really means

Loyalty programs aren’t inherently good or bad – the ECU research makes clear that whether they genuinely pay off depends heavily on your own circumstances, habits and capacity to play the system on your own terms, not just on the retailer’s. Understanding that distinction is the first step to deciding whether your own loyalty card deserves the spot it’s currently taking up in your wallet.