FOLLOWING A SERIES of profit warnings, Safeway‘s ABC loyalty card scheme has been given a facelift with bonus points now conferred on top-spending customers. Launched in mid-April, the scheme targets consumers spending £160 or more a month. This happy breed will receive double points on all expenditure, whilst the truly extravagant who shell-out £240 upward gain triple points. Commented Verdict Research: ‘This is the first serious move we have had in inflationary benefits in loyalty cards … [supermarkets] just have to offer more points to keep the promotion alive.’ Safeway’s move, which will cost £20 million, appeared to please the City. Said one analyst: ‘It is a meaningful promotion ... Safeway is weak in the big shopper area, with its average transaction about 25% below the other big food retailers. It’s well thought-out and won’t be that easy to copy.’ [Debrief disagrees: the scheme is all too easy to copy and almost certainly will be. We predict a replay of the 60’s trading stamps saga, when the incentive value of stamps decreased in direct proportion to their availability - eventually from almost every trader in town.]
© Copyright 2017
All rights reserved including database rights. This electronic file is for the personal use of authorised users based at the subscribing company's office location. It may not be reproduced, posted on intranets, extranets or the internet, e-mailed, archived or shared electronically either within the purchaser's organisation or externally without express written permission from WARC.