Loyalty programs influence shoppers more than individual prices, survey finds

Customers are choosing where to shop based on loyalty and rewards programs rather than prices, a survey has found.

The Retail Doctors Group found the use of loyalty programs had jumped by 18 per cent, with shoppers saying discounts were the most important perk.

Grocery store loyalty programs had the most devoted customers, with Woolworths' Everyday Rewards being the most popular, followed by Flybuys, McDonald's, Dan Murphy's Qantas Frequent Flyer and Myer One.

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"Retailers really need to look at who is that customer and how can they personalise these loyalty programs - whether its status, discounts, whether it's exciting experiences," Lead of the consumer insights division at Retail Doctor Group Anastasia Lloyd-Wallis said.

"They look for trust, they look for a brand and they look for a connection."

Consumers also said that the biggest barrier to rewards programs was that some did not offer enough value, with 50 per cent saying they would switch retailers if they offered better rewards.

One shopper told 9News they wouldn't sign up if there wasn't any discount incentive as they'd just be "getting marketing emails."

Up to 30 per cent of shoppers said they'd happily pay for loyalty schemes that offered significant value, such as free streaming or postage services.