Loyalty reward programs have become a common practice for supermarkets around the world. They’re designed to help retailers keep customers coming back and to reward those who shop with them regularly. Supermarkets across Uganda have followed this trend with various loyalty programs. But what exactly are loyalty programs, and how do they work? Today, we’ll explore the ins and outs of supermarket loyalty programs and how you can make the most of them to save money while shopping.
What is a loyalty program?
A loyalty program is a marketing strategy designed to encourage repeat customers by providing rewards for frequent purchases. Supermarkets typically offer loyalty cards or apps that customers can use to accumulate points based on their purchases. These points can then be redeemed for discounts, free products, or exclusive event access.
How do supermarket loyalty programs work?
Most loyalty programs are simple to understand and easy to use. Customers sign up for a loyalty card or app and then present it every time they make a purchase. Each purchase earns them points, which can be redeemed for rewards once a certain threshold is reached. Some programs offer bonus points for specific items or promotions, further incentivizing customers to shop with that particular supermarket.
What are the benefits of loyalty programs?
For customers, the primary benefit of a loyalty program is the opportunity to save money on their shopping. The more they shop, the more points they accumulate, which can be redeemed for rewards or discounts on future purchases. Loyalty programs also provide a sense of exclusivity, as members may have access to special promotions or events that are not available to non-members. For supermarkets, loyalty programs are a valuable tool for customer retention. By offering rewards for frequent purchases, supermarkets can encourage customers to return. Loyalty programs also provide valuable data on customers’ shopping habits, which can be used to tailor promotions and improve the overall shopping experience.
Snapshot: Carrefour’s MyClub program
Carrefour Uganda’s MyCLUB digital loyalty rewards program is a prime example in this case. With the MyCLUB, customers gain access to exclusive MyCLUB discounts and offers from which they can collect extra points. These can also be redeemed to pay for shopping in-store. Recently, Carrefour reduced the redemption threshold from 100,000 points to 10,000 points enabling customers to enjoy their rewards sooner.
In addition to points, MyClub members receive exclusive offers and discounts via the app. Another key feature of the MyClub program is the ability to track spending and points accumulation directly through the app. This allows customers to see how close they are to earning a reward and to plan their shopping accordingly.
