In this advertorial, Dotdigital APAC GM Rohan Lock discusses how to win the race for loyalty in Australia.
When it comes to brand loyalty, Australia is one of the toughest markets in the world. According to Dotdigital’s latest Loyalty Divide research, Australians are 69% more likely than other consumers globally to claim no loyalty to any brand.
For fashion retailers, this presents both a challenge and a huge opportunity. Unlike in some overseas markets where shoppers happily opt into loyalty schemes or engage with brands through multiple channels, Australians demonstrate a cautious, almost minimalist approach. They protect their data, they’re selective about their engagement, and they expect real value in return.
The message is clear: in Australia, loyalty isn’t freely given, it must be consistently earned.
Why traditional loyalty programs fall short
For decades, retail loyalty strategies have revolved around points, tiers, and rewards systems. But in Australia, our research shows these models aren’t resonating. Only 9% of consumers are interested in tiered loyalty programs, and an even smaller 5% are drawn to subscription-based schemes. Instead, Australians are pragmatic: 56% prefer cashback, and 51% want free delivery and returns.
This reveals something important: transactional incentives matter, but not in the “earn-now, redeem-later” sense. Shoppers here want immediate, tangible value. For fashion retailers, that could mean rethinking loyalty programs as frictionless perks woven into the shopping experience, rather than complex systems that require long-term commitment upfront.
Trust: the new loyalty currency
The Australian consumer is also particularly privacy-conscious. One in 10 will never share their data with a brand, no matter the incentive and 27% will only do so reluctantly, and with clear value promised. In a climate where retailers are collecting data to personalise offers and deepen engagement, this is critical.
Fashion retailers must understand that building trust starts not with what you give away, but with how you communicate. Transparency around how data is collected and used, clear opt-ins, and respecting communication boundaries are essential. Over half of Australians (58%) actually prefer email as their main channel, but they don’t want to be bombarded. They want relevance without intrusion.
For brands that get this balance right, the prize is significant: once trust is established, customers are more open to sharing the information that powers more personalised, highly tailored experiences.
Reputation and values matter most
Another finding from our study may come as a surprise in the age of social media: 48% of Australians see customer reviews as the most influential factor in their purchase decisions. That’s more than social posts, celebrity endorsements, or even price in some instances.
For fashion retail, this should serve as a call to action. Authentic peer-to-peer advocacy is far more powerful than celebrity-led campaigns. Investing in customer satisfaction, showcasing genuine reviews, and amplifying customer stories will yield more meaningful results than ever.
At the same time, Gen Z, the next engine of fashion retail growth, is bringing a new set of expectations. Nearly 40% say they will stay loyal to brands that stand for sustainability and values, while more than a quarter feel brands aren’t personalising enough to earn their attention. This next-generation consumer is sending a clear signal: loyalty in fashion isn’t just transactional, it’s deeply tied to ethics, inclusivity, and belonging.
What fashion retailers need to do now
So how can fashion brands in Australia win in this loyalty-light environment? A few key principles stand out:
Make loyalty effortless – Reward customers with low-friction benefits such as free shipping or hassle-free returns. Streamline experiences instead of adding layers of complexity.
Build trust through transparency – Be open about data usage and respect communication boundaries. Frequency fatigue is real, and brands that over-message risk pushing customers away.
Champion authenticity over hype – Leverage the power of reviews, customer stories, and social proof to drive trust and engagement. Focus on substance over style.
Stand for something – Especially for Gen Z, values like sustainability and inclusivity can be the deciding factor in long-term loyalty.
Personalise with purpose – Australians don’t want one-size-fits-all campaigns. They’re selective about what brands they follow, and to stay on the list, retailers must show they truly understand individual needs and preferences.
Final thought: Loyalty as a value exchange
For Australian fashion retailers, loyalty is a challenge worth embracing. The retailers that adapt by creating personalised, respectful, and value-driven experiences won’t just win more loyal customers. They’ll win advocates who stay longer, spend more, and champion the brand in a market where that loyalty is the rarest currency of all. The question isn’t whether Australian consumers can be loyal - it’s whether your brand is willing to earn it.
Check out Dotdigital’s Loyalty Divide Report, for more in-depth recommendations.