A LOYALTY program which rewards locals for “staying and playing” in their own backyard could be the key to a bargain break for Fraser Coast families these Christmas holidays.

The Staycations program encourages residents to holiday, shop and dine locally by giving them a membership card that allows them to experience the best the Fraser Coast has to offer at a discounted price.

Since its launch earlier this year 8542 members have signed up to the program.

In the past two months almost 6000 visitors have accessed Staycations deals.

There are 117 special offers on accommodation, dining, shopping and tours available to members on the website.

Deals include half-price tickets to Fraser Island and sunset cruises out on the Bay and much more.

In the lead-up to the launch, the Chronicle joined with 7 Wide Bay to pledge $50,000 worth of advertising.

Chronicle general manager Darren Bosley said yesterday he looked forward to exploring how the paper could continue to support local businesses in the new year.

To become a Staycations member or for more information visit www.ourfrasercoast.com.au

Survey results reveal one in five Canadians plan to redeem their rewards for gifts this holiday season.

- Practice of redeeming rewards to purchase gifts increased 6 per cent to 20 per cent this holiday season.

- 85 per cent think it’s acceptable to use rewards for gifts.

- 26 per cent of those using rewards for gifts said they will use the money saved to buy additional gifts for family and friends.

TORONTO, ONTARIO–(Marketwire – Dec. 5, 2011) - According to BMO’s Annual Holiday Spending Outlook, more Canadians than ever plan to redeem loyalty rewards for gifts this year.

“Canadians consider loyalty rewards a bona fide gift-giving currency,” said Su McVey, Vice President, Customer Communications & Marketing, BMO Bank of Montreal. “More than 85 per cent of respondents to our poll told us they do not think using rewards for gifts is tacky; in fact, the intention to use rewards as an alternative to cash or credit to purchase holiday gifts increased by 6 per cent to 20 per cent this year from 14 per cent in 2010.”

While credit cards (64 per cent), debit (57 per cent), and cash (56 per cent) remain the three top payment preferences, the practice of redeeming loyalty rewards as a fourth option suggests Canadians are looking for ways to stretch their purchasing dollars. The good news for retailers is that this growing thriftiness doesn’t come at the expense of in-store and online purchases.

“Canadians, who plan to spend $1,397 on average this holiday season, are being both frugal and generous, as 26 per cent of those polled told us they will use the savings they generate from redeeming their rewards to buy additional gifts,” said Ms. McVey.

LoyaltyOne, which along with BMO founded the AIR MILES program in 1992, reported that redemptions in all of the AIR MILES reward miles categories spike during the holiday shopping season, but electronics and toys typically experience the largest increases.

Redeem early to avoid disappointment

Canadians who plan to redeem rewards for gifts this year should take note. To ensure your gift(s) appear under the tree on December 25, you must place your order by December 14, the last day from which delivery of items ordered through the AIR MILES catalogue will be guaranteed to arrive with Santa.

Sun destinations are top travel choices

There also is a spike in flight redemptions this time of year. The survey found 13 per cent of Canadians plan to use rewards for holiday travel. Sun destinations remain the most popular travel choice, according to LoyaltyOne. This year, the top five holiday destinations for AIR MILES collectors are:

1. Mexico
2. Cuba
3. Dominican Republic
4. Jamaica
5. Bahamas

Reward collectors hoping to book flights or other travel for the holidays are advised to book well in advance of their travel dates.

Regional break down for use of loyalty rewards

• People in Ontario were the most likely to use rewards for gifts (25 per cent), while people in Quebec were the least likely (14 per cent).
• People in British Columbia were the least likely to say using rewards for gifts is “tacky” (7 per cent).
• People in the Atlantic Provinces were the most likely to put money saved from using rewards towards additional gifts (34 per cent).

BMO’s Holiday Spending Outlook was completed online from October 17-20, 2011 using Leger Marketing’s online panel, LegerWeb with a sample of 1508 Canadians. A probability sample of the same size would yield a margin of error of +/-2.5 per cent 19 times out of 20.

1. Mexico
2. Cuba
3. Dominican Republic
4. Jamaica
5. Bahamas

• People in Ontario were the most likely to use rewards for gifts (25 per cent), while people in Quebec were the least likely (14 per cent).
• People in British Columbia were the least likely to say using rewards for gifts is "tacky" (7 per cent).
• People in the Atlantic Provinces were the most likely to put money saved from using rewards towards additional gifts (34 per cent).

M y wallet is full of loyalty cards. I need to get rid of half of them,” says an exasperated Ashish Gupta when asked about his experience with loyalty programmes. This 32-year-old manager at a manufacturing firm says he’s confused about what each individual programme has to offer. And, more importantly, he rarely believes he is getting enough value from the dozen-plus programmes he is part of.

Keeping customers loyal is a problem retailers often grapple with and Gupta’s experience is hardly unique. Over the last decade Indian companies that are focussing on acquiring and retaining customers have become aggressive about giving out loyalty cards. As a result, 42 percent of Indians in the SEC A, B and C categories are now part of at least one loyalty programme in India’s $4 billion-a-year loyalty market. (This figure includes the market for gifts, which a lot of companies use as a surrogate for loyalty programmes.) Loyalty is seen as the number one tool that allows retailers to access data on customer tastes and preferences.

This has resulted in a plethora of programmes competing for the same customer wallet. Bryan Pearson, president of LoyaltyOne, the world’s largest loyalty company, says the customer sees the loyalty programme as too cumbersome while the retailer, often lacking the expertise to understand the vast amounts of data it generates, sees it as an expense item.

What’s required is a win-win for both. Pearson, whose company set shop two years ago in India, has a plan that will help reduce the clutter around loyalty programmes — a network-based rewards programme administered by an independent company. “Indian firms are very entrepreneurial and we see that in the loyalty space as well,” says Pearson.

Over the last four months it conducted extensive customer research through Colloquy, its research arm. A few findings are worth noting. First, only 20 percent of Indians in the SEC A, B and C categories are loyal to a particular brand. Offer a better deal and they are more than willing to shift.

Second, there is no one-size-fits-all. Different customers have different expectations from a programme. So customers like Gupta, who come from the higher socio-economic category believe they are not getting enough value out of a particular loyalty programme while those in a lower socio-economic bracket say they don’t shop enough at a particular retailer to derive the benefits of a loyalty programme.

Network-based loyalty programmes will allow customers to collect and redeem points across a number of companies. More importantly, they will have to spend time understanding the fine print of only one programme. For instance, one such programme could offer benefits spread across an airline, a general merchandise retailer, an apparel retailer, a car rental company and a hotel chain. LoyaltyOne, which recently launched a network programme in Brazil, says the Indian market is ripe for retailers to collaborate with network-based programmes. DOTZ, its Brazilian programme, will eventually reach anywhere between 25 million and 40 million consumers, says Pearson.

Pearson’s plan is endorsed by Girish Khare, chief marketing officer at RewardPort, a startup in the loyalty space. “Without a network you are as good as dead,” he says. His company is working on a network-based programme for the increasing number of Indian tourists who travel to South East Asia. It has tied up with malls, tour operators and tourism boards to offer reward points and freebies to travellers visiting the region.

For now, LoyaltyOne says it is in the process of signing up partners for its loyalty programme. LoyaltyOne will sell points to retailers for every amount a customer buys from them and take on the responsibility for all redemptions. For instance, if Gupta spends Rs. 100 at Shoppers Stop, Lifestyle, or any retailer that is part of the network, he will earn 10 points. Once he accumulates a certain number of points he could redeem them for buying a ticket for his next holiday. LoyaltyOne will take responsibility for any redemption. In addition, it will share customer data with retailers in its network giving them access to spending habits and allowing them to customise offers. LoyaltyOne hasn’t as yet fixed a launch date for the programme.

So while Gupta, will remain a prime target for individual companies he will have the option to choose to be part of a network for an annual fee. Loyalty programmes with a strong network will give him more bang for his buck as well as ease the pressure on his wallet.