New loyalty card for New Zealand shoppers

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By: Wise Marketer Staff |

Posted on May 13, 2003

New loyalty card for New Zealand shoppers

A new loyalty card programme has been launched by two major New Zealand supermarket brands: Foodtown and Woolworths. The new 'Foodtown Woolworths Onecard', operated by Progressive Enterprises, is similar to the original Foodtown card (which has operated since 1994) but carries additional benefits.

The card gives programme members discounts on over 2,500 items every week in Foodtown and Woolworths stores throughout New Zealand, along with points which can be redeemed for rewards such as grocery cash vouchers and bonus rewards.

Points and rewards For every NZ$10 spent, shoppers receive one point, and for every 200 points they qualify for a reward. Those who have accumulated 200 points are mailed three times a year so they can choose their rewards.

Points remaining after any rewards have been issued are carried forward, as are points totals under 200. Points are, however, only valid for one year from their date of issue.

How it works The shopper's card is scanned at the supermarket checkout, and any discounts are deducted automatically. The points are also automatically calculated and added to the customer's balance.

For existing Foodtown cardholders, the card assumes all the benefits of the new Foodtown Woolworths Onecard, and can now also be used at Woolworths.

Availability There are currently 92 Foodtown and Woolworths stores nation-wide, all of which are members of the Progressive Enterprises chain. Foodtown stores are located primarily in the Auckland region, and in Wellington and Palmerston North, while there are Woolworths stores throughout the country, from Invercargill to Whangarei.

"The Foodtown Woolworths Onecard extends the Foodtown card, of which 1 million have been issued in New Zealand to date," said Ted van Arkel, managing director for Progressive Enterprises. "This is the one card you need to get bigger savings and better rewards at both Foodtown and Woolworths."

"It's also important to understand that the programme is flexible enough to grow its rewards base, and I can say that we are exploring additional options to widen the choice," he added.

Placing an unusual spin on the programme, van Arkel said that "The card is all about the supermarkets rewarding and being loyal to their customers, not the other way around."

Customer needs The rewards are targeted at the customers' needs, based on information provided when they initially apply for the card, and from information learned from their shopping habits.

"Of course, customers can choose whether or not they want a Foodtown Woolworths Onecard," van Arkel noted. "In all our research groups, customers tell us they like the card system and that they are happy to tell us about themselves if it means they get better service and special discounts focused on their needs."

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