Digital transformation and increased e-commerce shopping pushed businesses to revive their customer retention strategies and develop new loyalty programs. Consumers primarily want one thing from the supermarkets: a relationship that goes both ways.
Thus, here is how supermarkets can use loyalty programs to counter inflation.
Technology is the future of this world, so embracing it is the way to go. Retailers need to adopt a transformational approach and create a new, deeper connection with their consumers by providing value that encompasses the price.
Take the examples of Netflix and Spotify. Both brands showed how to make your way in several industries by building strong customer relationships with technology and personalization.
Supermarkets can come up with rewards apps that give their regular or new customers discounts on products. These could be grocery coupons, fuel recharge cards, cashback rewards, or food deals.
No one can deny the importance of data at the moment. Technology enables consumer data collection (with their consent), which institutions can use to create a more personalized and affordable customer experience.
Leveraging technology to access first-party data can help supermarkets target their customers wherever they want.
Data gives brands exposure to the most in-demand consumer goods, allowing them to build loyalty in the short term and long term.
This results in next-level personalization — enabling supermarkets to communicate with the right customers at the right time through several channels. For example, Lidl Plus and Asda Rewards aim to engage consumers with personalized games.
The Lidl Plus app started off by offering weekly coupons to users, with up to 25% off on specified items. Now, it's creating interest with gamification. Consumers get digital scratchcards for every purchase, which help them win a discount.
Likewise, Asda Rewards also provides consumers with a personalized experience through gamification. Shoppers can "spend to earn points" and earn more points and miles by completing "missions" in the app. These missions could include buying three fruit or vegetable products or spending a specific amount in another category.
Big names like Amazon Fresh also enhance their customers' experience and loyalty with amazing discounts. Amazon Fresh currently offers two coupon codes and 51 discounted offers to customers on their favorite products. Similarly, American Express also offers travel and shopping rewards and even gift cards. also offers travel and shopping rewards and even gift cards.
Creating personalized experiences for consumers can help supermarkets simultaneously increase customer loyalty and fight inflation.
Related: Personalization can be the key to boosting your loyalty program
Developing charitable programs to help needy people in the community can also help supermarkets create loyalty among consumers. For example, the My Morrisons loyalty app enables people to be a part of social groups like the Teachers' Club and NHS Club and take advantage of special discounts while donating to charity.
A renowned supermarket, Sainsbury's, has also started an initiative that allows Nectar members to give their points to charity. Whenever a shopper donates, each point directly funds their chosen charitable firm.
These examples show how supermarkets can use customer data to build longer-term loyalty and do good for the community. Fortunately, this approach has been boosting sales for supermarkets as well.
Tesco now offers 95% of its promotional offers via its Clubcard Prices only. This initiative was developed to help members combat the inflationary pressure, with around 4,500 products available at discounted rates. It resulted in more than 20 million Clubcard sign-ups for the brand.
Ensuring customers get value for their money is the key to increasing their loyalty and mitigating inflation concerns. With so many brands offering discounts and loyalty programs, supermarkets must compete to give unique offers and stand out from the crowd.
More than 70% of consumers recommend a brand with a good loyalty program. Thus, supermarkets must offer unique rewards to compel shoppers to choose a particular brand or offer.