Australian consumers are among the world’s most brand-agnostic, with new research revealing they are 69% more likely to lack brand loyalty altogether.
The finding comes from Dotdigital’s latest global consumer insights study, The Loyalty Divide, which paints a clear picture of a market where trust, transparency, and tangible value have overtaken traditional loyalty tactics.
Based on a survey of more than 3,000 global consumers, including 1,000 Australians, the research underscores the unique challenges facing marketers in Australia, where privacy concerns are high, and patience for impersonal, high-frequency communications is wearing thin.
“Australian shoppers value their privacy and their time,” said Rohan Lock, APAC GM at Dotdigital. “They’re more reluctant to opt into loyalty schemes or communication streams unless brands demonstrate true value and respect.
“That’s why brands in Australia must go beyond one-size-fits-all loyalty approaches. The winning formula here includes genuine trust, low-friction incentives, and communication that’s both timely and relevant.”
A Nation of loyalty sceptics
In a region often seen as a testbed for global marketing campaigns, Australia is proving to be a tougher terrain when it comes to loyalty.
According to the data, 10% of Australian consumers won’t share any personal data with brands, even if it means forfeiting rewards. A further 27% say they’re uncomfortable with data sharing, but may be open to it if the return is right.
That cautious approach extends to communication preferences. While 58% prefer email for brand contact, the appetite for frequent messaging is limited.
Push notifications (8%) and SMS (9%) remain niche preferences, suggesting that brands need to be more measured and relevant in their outreach.
Loyalty must be earned
The study also reveals that cashback (56%) and free delivery/returns (51%) are the most motivating rewards for Australians, far outpacing more complex models like tiered (9%) or subscription-based (5%) loyalty programs.
Lock adds, “While trust and cautious data sharing define the Australian market, there’s real opportunity for brands that invest in personalised, transparent, and frictionless experiences. When consumers feel respected and rewarded, loyalty naturally follows.”
Peer endorsements beat influencers
Another key takeaway reveals that 48% of Australians say customer reviews influence their purchasing decisions more than influencer endorsements or even price, revealing the rising power of peer validation.
For marketers relying heavily on creator partnerships or promotional discounts, the message is clear, authentic social proof may be more valuable than splashy campaigns.
Younger consumers also expect more than transactional perks.
Among Gen Z Australians, 39% say they are loyal to brands that reflect their values, particularly sustainability. Yet 27% of Gen Z say brands aren’t doing enough to personalise the experience, signalling a clear gap between expectation and delivery.
What does this mean?
In a market defined by caution, value sensitivity, and data scepticism, winning loyalty isn’t about pushing harder, it’s about being smarter. Brands that can offer relevance without intrusion, and rewards without complexity, are better positioned to cut through the noise.
Dotdigital’s findings challenge the industry to rethink loyalty not as a program, but as an earned relationship, one rooted in respect, relevance, and clear value.