Driving loyalty without having a loyalty programme

Adrian Hargreaves's picture
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Adrian Hargreaves
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Adrian Hargreaves wrote:

I thought that the community may find this news from the UK interesting which looks at how Asda (which does not have a loyalty scheme) is competing against its supermarket rivals which do have established loyalty schemes. Asda are focusing on a number of methods including a mobile app, retargeting, SMS and Wi-Fi.

The full article from Brand Republic can be seen by following the link. http://www.brandrepublic.com/news/1217781/asda-admits-not-finding-easy-drive-loyalty/

Would community members have any observations of how are supermarkets driving loyalty in other countries?

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Lauren Follett's picture
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Lauren Follett
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Lauren Follett wrote:

Interesting article Adrian. I'm not sure that supermarket would survive in Canada considering all the large grocery stores have some type of loyalty program whether it's earning AIR MILES, or using the grocery store's credit card to earn cashback. That being said, one grocery store in particular also uses a non-loyalty tactic to drive business: price matching. This grocery store allows you to bring in a flyer from another store, and they will match the sale price of the competition so you can do all your shopping in one place. 

Adrian Hargreaves's picture
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Adrian Hargreaves
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Adrian Hargreaves wrote:

Yes we have price matching in the UK too. When the recession first started, supermarkets seemed to be 'recession proof' for a while.  People gave up on many things but still wanted to eat well at home.  As the harder times have dragged on, there are many initiatives in an already competitive grocery sector.  In addition to the 'own brands' offered at far cheaper prices, there are different quality categories including 'value' ranges for different meats and poultry. For those who want a treat and to eat well on a budget and not have to cook it themselves, there has been a growth in the sales of 'meals for 2', where you can get, from the 'finest range', a main course, dessert and bottle of wine all for £10.  These type of packaged meals, used to be sold at key dates such a Valentines Day, but are now available all year round, perhaps reflecting that people are staying in more.  There are similar Chinese and Indian food packages aimed at the undercutting the takeaway market.

Online ordering with home delivery is another growing trend, with some retailers faster off the mark than others to establish a foothold.  Vouchers to be used either in store or via online ordering are also popular, especially with companies like Tesco. They use their loyalty scheme to send vouchers tailored to individual customer needs.  These vouchers are now sent in blocks which cover a several week period.  Other supermarkets do similar initiatives where loyalty is rewarded over a specific period perhaps ending at the end of the month timed to coincide with payday.

Tesco have a database of everything their customers have ever bought from them.  They collect this information using an innovative Tesco Club card key fob.  This includes a barcode which is swiped at the cashpoint at the time of purchase.  The key fob is a great idea.  Almost everyone going to a supermarket is going to take their car keys with them.  Points are provided based on purchases and the discount vouchers follow.

It’s getting tough in all types of retail and for a while now that has included grocery retail. The supermarkets have for years been replacing the local markets through creating the same 'market' environments in store as well as offering better prices and convenience.  In recent years local suburban corner shops and stores as well as local businesses such as butchers have been threatened by new locally based mini stores operated by the grocery giants.

There was a turn back by many shoppers to local butchers and farmers markets several months ago, when it was found that many leading supermarkets both in the UK and Europe, had in fact unknown to everyone, including themselves, been selling horsemeat in packaged meals advertised as beef.  The supply chain was blamed but there was a huge media frenzy and public backlash, proving that supermarkets don't have it their own way anymore, but there again, who does?

As Detective Monk would say, 'It's a jungle out there'.