The announcement by Woolworths yesterday that it will replace offering Qantas points for purchases with Woolworths ‘dollars’ is one newsagents ought to take note of. The change is fundamental: points are being replaced by dollars, or, at least, something closer to dollars – that can be spent in-store.
The email from Woolworths to customers included this:
Members told us what they really want is money off their shopping, so we’ve changed points for Woolworths Dollars!
My own experience through my software company with a variety of loyalty programs including points, points for gifts, buy X and get Y (like the magazine club card), points for entries in competitions, discount vouchers offering a discount off purchases and points accruing to FlyBys and other programs is that shoppers want value now.
Value = real savings.
Now = today or at least soon.
People are tired of points based programs where the value of points is not easily understood. With good reason there is scepticism about points based programs.
For what it is worth, the discount voucher program, offering $$$ off purchases immediately, continue to work well, driving far greater value than the small cost to the business. The program continues to offer a terrific point of difference in the eyes of shoppers too. This is the closest to the Woolworths offer – except that with Woolworths you have to spend much more to get $10 in value. It does not sound all that good but compared to points it is better.
While not exactly what Woolworths is switching to, their program sounds like it will be pitched like discount vouchers – real savings available immediately.
This video I shot last year about discount vouchers is as relevant today as it speaks to how this type of loyalty offer works in a newsagency compared to the old-school points based program:
Also gives us the opportunity to go head to head with them. If their system is anything like their school rewards you will need to spend hundreds to get $10 off. Our Loyalty system is much much more generous.
Perhaps we can finally out them as expensive.
I’d love to know where Woolworths did their research. Everyone in my circle that I’ve spoken to about this will stop shopping at Woolworths based on them ending the FF points. It was their only point of difference (I topped up my Opal card at Woolies for the extra points and would do my shopping there if I was spending more than $30).
If I wanted money off I’d be shopping at Coles using the FlyBuys system more and swapping points for $
I think it is driven by what Woolworths can get supplier funding for.
I would love to know % of name brands & home brands that will be orange ticketed. It looks to me like it could be used to change peoples buying patterns as well as leveraging suppliers.
Now News Limited want Newsagents to promote Woolworths by expecting us to hand out a free tote bag with the Tele.
Sorry, not happening and why would we want to promote a opposition company like Woolworths?
Spot on Gregg! We also will not be participating in this Tote bag promo and disappointed that News Ltd expects this of us.