Woolworths launches revitalised loyalty programme in Australia

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By: Wise Marketer Staff |

Posted on November 11, 2015

In Australia, Woolworths has announced it will launch a revitalised loyalty programme, 'Woolworths Rewards', enabling members to earn Aus$10 off their shopping 'at least twice as fast' as its major competitor's loyalty scheme.

The programme delivers a multi-million dollar increase in rewards beginning this week. Woolworths has said it "will not be beaten on price" and Woolworths Rewards offers members an opportunity to save even more money off their shopping.

Woolworths Food Group Managing Director, Brad Banducci, said: "Woolworths Rewards is totally re-inventing our loyalty programme, putting our customers' needs first.

Customers are increasingly value conscious and when it comes to loyalty. Sixty-eight percent say they want money off their shopping, while only 9% prefer a points scheme.

Research shows the majority of supermarket shoppers think it takes too long to earn enough points in loyalty programmes to redeem rewards in points-based schemes.[3]

Woolworths Rewards is not a points-based programme. Customers earn 'Woolworths Dollars' in participating Woolworths Supermarkets and BWS stores when they buy any of a huge range of items marked with an orange ticket across virtually every product category, encompassing a wide range of brands. When customers buy those items, Woolworths dollars will be added to their Woolworths Rewards card at the checkout. Upon their Woolworths Dollars balance reaching $10, that amount will be taken off their next shopping bill.

The Australian Consumer, Retail and Services (ACRS) research unit at Monash Business School analysis says current Woolworths' loyalty members typically will see more than double the value through the revitalised programme. They will also immediately benefit from many more relevant, targeted offers and continue to receive Woolworths' popular 4 cents-a-litre fuel discounts.

The ACRS analysis confirms that a typical shopper spending $108 per week could now earn $10 Woolworths Dollars to take off their shopping in just over seven weeks. That is at least twice as fast as in the major competitor's core programme. Those with spending patterns consistent with a family will typically achieve $10 off their shopping in under six weeks and typical senior couples will take under seven weeks.

Modeling from the ACRS confirms the typical shopper need only purchase just under $4 worth of items with an orange ticket out of their entire shop each time to receive their $10 at least twice as fast as the major competitor's loyalty scheme.

Offers will be focused on commonly purchased items, meaning the typical shopper will achieve this rate without any change to their usual purchases. If they choose more orange-ticketed items, they will earn even more.

Everyday Rewards customers will be able to continue to earn frequent flyer points until 31 December 2015. Avid points collectors will continue to be able to earn points on their Woolworths' shopping by using a debit or credit card linked to their chosen frequent flyer programme. Woolworths will consider any partnership option that does not dilute the core offer and that will add further value for its customers. Woolworths values its long association with Qantas and will look to work with them to endeavor to bring additional value to Woolworths Rewards' members.

Woolworths currently has 9 million members enrolled in the Everyday Rewards programme. Existing members will automatically receive a new Woolworths Rewards card in the post.

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