Industries2 min read

Loyalty NZ Disrupts Data-Driven Loyalty Programs with VMware Cloud on AWS

With around 2.8 million members, data driven customer engagement and loyalty company Loyalty NZ runs Flybuys, the most extensive loyalty program in New Zealand. Partnering with the leading supermarket, bank, and fuel brand in the country, Loyalty NZ harnesses huge data sets on customer demographics and behaviour that help partners make smarter and more proactive decisions to drive customer engagement, giving them an edge in a fiercely competitive market.


Over 27 years of running the program, the volume of data that Loyalty NZ manages has grown significantly. While this means that they possess a wealth of valuable customer insights that partners rely on, Loyalty NZ recognised that there was a need to transform its traditional infrastructure model to a hybrid cloud-based model that would allow them to better utilise that data. This would place it in a stronger position to disrupt the data-driven customer engagement space, while continuing to provide personalised customer experiences.


Previously, their data infrastructure was spread across two physical data centres and one cloud, which limited its ability to scale during peak periods. Loyalty NZ wanted to exit its physical data centres and adopted VMware Cloud on AWS as the solution to complete this transition. Working with The Instillery, one of New Zealand’s leading technology companies, Loyalty NZ migrated from its physical data centres to VMware on AWS in three phases in just over three months, right on schedule. “This was a complex migration made simple,” says Jeremy Anderson, acting CTO, Loyalty NZ. “It was on time, on budget, on scope, minimal business disruption and delivered all the value that it was meant to.”


Migration to the cloud has improved scalability, accelerated query processing, and amplified the company’s performance during online sales events. These benefits have been crucial for supporting critical holiday seasons and sales, amplifying Loyalty NZ customer engagement.


“We’ve gone through two holiday periods, and we’ve had a total of zero severity one incidents,” says Brian Ferris, CTO, Loyalty NZ. "Queries that previously ran in hours, now take minutes. And at important retail dates, we’ve been able to ramp up our capacity to 800percent.”


The partnership between VMware and Loyalty NZ has allowed Loyalty NZ to tap into valuable data assets and provide targeted offers to customers more effectively. Unlocking new value through better decision-making leads to more targeted campaigns, deals, and rewards. The transformation to a cloud-based data centre has given Loyalty NZ the flexibility to scale its data computing power on demand, saving a significant amount of time and resources that can now be tapped on to drive innovation in its data driven customer engagement and loyalty services offering.