New grocery loyalty proposition in the SA market - creating a buzz
There's plenty of debate in the world of loyalty marketing right now around the continued relevance (or not) of redeemable loyalty points. Programme owners, operators, sponsors and practitioners are re-evaluating their go-forward strategies. Some say that points, beans, bucks and miles are a thing of the past.
Millennial apathy, instant vs delayed gratification, personalisation, AI, big data, shopper marketing - buzzing around the loyaltysphere. Compelling arguments for and against ... driving change - or at least seeking to drive change. Grab the spotlight. Dilute the glow of the incumbents.
Creating a brain interruption is not easy. Developing and deploying an innovative idea that generates the right level of hype and sustained interest in our tech and digitally enabled world is key to success. Consumers are conditioned. Consumers are spoilt (fickle?). Something new, something different, a little bit more than before. Something extra.
But where to start? And just how different can you really be?
Shoprite Holdings is Africa's largest retailer - and on Monday the national rollout of the Checkers Xtra Savings rewards programme hit the South African market. A well crafted bouquet of benefits. Here's a synopsis:
No redeemable points. No earn. No burn. No points statements. No points exchanges. No catalogue of toasters, kettles or dart boards.
No tiering points, no tiering levels. No downgrades, upgrades, re-gradings. No blue, silver, gold, platinum or diamond status. No mismanaged expectations.
Yes to instant cash savings / discounts through alliances with brands - launch promos, weekly promos, special event promos, birthday promos, preview promos
Yes to a well designed and detailed operational platform (app, USSD, QR codes, website, WhatsApp ... driving inclusion and access to a very diverse target market from sign-up through all the loyalty lifecycle phases)
Yes to an incredibly bright and colourful membership card (without a doubt the most stand-out design in any frequent shopper / loyalty junkies wallet or purse ... guaranteed to be noticed from a distance) - re-inforced in store with the same luminous orange livery. Shelf talkers. Posters. Banners. Sign-up agents. Fresh and engaging and full of smiles.
Yes to automatic sweepstake entries where winners have their purchases refunded and for other competitions.
Yes to doing the right thing by giving back to those in need - the Lunchbox Fund, NSPCA and Food & Trees for Africa
Yes to going green - through rewarding members with an additional discount for using their environmentally friendly Planet Bag
I look forward to see how this journey unfolds - and how stalwarts like Clicks ClubCard, Dischem Benefits, Pick n Pay Smart Shopper, Woolworths WRewards and SPAR Rewards react and respond in the short term and over the passage of time.
Will we see the end of loyalty points? Could this be the start? Will the retail banks follow suit?
To get more detail on Xtra Savings, visit the Checkers website: https://www.checkers.co.za/
by Deon Olivier