More than 5,000,000 Australians are active card holders of the Fly Buys program which was acquired by Coles in 2011. Fly Buys is undergoing something of a relaunch by Coles and 16,000,000 people are going to receive a new FB card in the mail. What makes it different in 2012? Coles says it is offering customers more points on their everyday household spend, more places to earn points and a faster way to get savings off their groceries. This leads to the 5 Golden Rules of loyalty marketing which are being utilised by the retail giant…

1. Include as many people as possible. Instead of having to request to join the loyalty program, Coles is automatically sending customers a card which they then just have to activate.

2. Have a key selling point. Coles has come up with a key selling point called my5 which will give flybuy’s customers 10% off five products of their choice – whatever the price.

3. Loyalty programs need to be easy. The relaunch includes getting rid of the expiry date on points, increasing their dollar value, and making it easier for shoppers to claim rewards, including at the checkout.

4. The more the merrier. The original flybuys program included Coles, National Australia Bank, Target, Kmart, Kmart Tyre & Auto Service, Coles Express, Liquorland and 1st Choice Liquor. The revamped program has expanded to include Webjet, AGL, and Telstra alongside the original flybuys partners.

5. Use the data. Data gathering by Coles is likely to include information on where customers are from, the products they buy and the hours they shop.