Both Coles and Woolworths have had a make over of their loyalty programs in a bid to secure customer loyalty. However experts say that these programmes can also benefit the retailers in terms of the data they can collect from customers.Â Coles has launched its flybuys and my5 program. At Woolworths there is up to 40% off specific products for Everyday Rewards customers.
In an article in The Sydney Morning Herald by Georgia Wilkins, called ‘Why supermarkets love loyalty’, Jason Pallant from Monash University’s Australian Centre for Retail Studies is quoted as saying: ”[The supermarkets] already get transactional information from the checkout. All the loyalty card does is allow them to match that data up with basic demographic information.”
In the article Clare Buchanan, a spokesperson for Woolworths, said: "In terms of what a retailer derives from the data, it’s incredibly rich.”
While Coles finance director Tony Buffin said: "’It’s really not a marketing exercise, we’re trying to give value back to customers. It’s a ‘thank you’ for shopping with us.”
To read the article in fullÂ click here
To find out more about what is happening in the world of loyalty go to Loyalty World Australia