Monday, June 17, 2024

Woolworths revitalises rewards program

‘Everyday Rewards’ has transformed into ‘Woolworths Rewards’, in a move Woolworths claims will enable members to earn $10 off their shopping at least twice as fast as its major competitor’s loyalty scheme.

Woolworths Rewards is not a points-based program. Rather, customers earn ‘Woolworths Dollars’ in participating Woolworths supermarkets and BWS stores when they buy items marked with an orange ticket. Upon their Woolworths Dollars balance reaching $10, that amount will be taken off their next shopping bill.

“Woolworths Rewards is totally reinventing our loyalty program, putting our customers’ needs first,” Woolworths Food Group Managing Director Brad Banducci said.

“Woolworths Rewards gives customers money off their shopping, fast. The beauty of the program is customers just shop as normal and the rewards look after themselves. It’s 100 per cent relevent to 100 per cent of our shoppers, totally automatic and hassle free.”

According to Catalyst Research, 2015, customers are increasingly value conscious and when it comes to loyalty, 68 per cent say they want money off their shopping, while only nine per cent prefer a points scheme. The research also shows the majority of supermarket shoppers think it takes too long to earn enough points in loyalty programs to redeem rewards in points-based schemes.

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 program. They will also immediately benefit from many more relevant, targeted offers and continue to receive Woolworths’ popular 4¢-a-litre fuel discounts.

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

Modelling 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.

Although Woolworths Rewards launched on October 28, Everyday Rewards customers will be able to continue to earn frequent flyer points until December 31.

Woolworths said it will consider any partnership option that does not dilute the core offer and that will add further value for its customers. It values its long association with Qantas and will look to work with them to endeavour to bring additional value to Woolworths Rewards’ members.

Woolworths currently has nine million members enrolled in its loyalty program.

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