The price war between Coles and Woolworths has now moved onto loyalty programs. Coles move is to relaunch the Coles FlyBuys card to 8 million Australian households, reported The Brisbane Times in its recent article "Coles ups loyalty ante".
Coles' loyalty card could well be a game changing move not only with its fight with Woolworths, but in the world of loyalty programs.
The Coles FlyBuys card will give customers an incentive to swipe their card with its new offering, the my5. The my5 gives customers 10% discount on 5 products out of a choice of 5500 products.
Coles have also partnered with Telstra, AGL, NAB and webjet. Which could easily trump Woolworths Rewards card that is linked to frequent flyer points with Qantas.
Coles has 5 million FlyBuys customers at present, but this revamped loyalty card could easily drive these numbers up.
Such discounting tactics is adding to the stress suppliers have been dealing with as they become even more submerged by the two supermarkets fierce war to win market share and customer loyalty.
If these two supermarket giants drive out enough suppliers and smaller competitors, it reduce product choice and inevitably push up prices.
With Coles' loyalty program reloaded and ready to aim and fire, how will Woolworths fight back?
This news has really heated up the loyalty programs world and businesses are keen to delve into this lucrative avenue to drive their own customer loyalty strategies. If your business is one of them, then go to Loyalty World Australia 2012, where you can meet and learn from loyalty experts. Or if you are a business with loyalty services, then consider sponsoring/exhibiting at the event.