Loyalty programs in retail

Aug 1st 2020

Loyalty programs in retail

Customer loyalty is a keyword that has determined entrepreneurial action for many decades. As is well known, it is much easier and cheaper to sell services to loyal and satisfied customers than to constantly generate new customers.

In addition, consumer behaviour, especially in the area of loyalty, has changed significantly over the last ten years. In our blog we present an exciting customer loyalty activity of a food company from Australia, with which they have achieved an amazing success.

In Australia the undisputed retail leader is Woolworths. In Germany, the company is comparable with EDEKA or REWE, in Switzerland with MIGROS or Coop. In September 2019 (the beginning of spring in Australia), Woolworths has given every customer a special surprise for every 30 dollars of purchase value: a package consisting of a FERTIL pot, a coco-pellet and a seed mat. The total set contained 24 different varieties (flowers, vegetables and herbs).

The aim of Woolworths was to attract as many consumers as possible to the supermarkets during the campaign period. The objective of the consumer was to collect all 24 seed varieties during the duration of the campaign and having later on all 24 varieties in the garden or on the balcony.

The image gain was enormous and the increase in the basket value per consumer was also impressive. The effect the project had on sales and profits was unfortunately not published. What is known, however, is the increase in sales that an earlier campaign produced: in the two months in which the campaign was carried out, sales increased by 7.5%.

Such loyalty programs haven’t been executed in Europe yet. Usually the retailers distribute “adhesive dots” which are then collected by the customers on a card. If one has collected enough dots one receives a discount on certain products. However, it is certainly interesting thinking about executing a loyalty program as Woolworth did.

If you have any questions about this creative customer loyalty solution or if you are interested in implementing one yourself, we will be happy to assist you.

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