Many of our readers will be struck about how similar the new Woolworths reward program is to our standard loyalty program. It's no accident, what happened was just before we designed the program, We went to a conference which largely dealt with loyalty programs. As we listened to what these experts from some of the largest convenience stores in Europe and Australia such as 7-11, Telstra and Optus said we took notes and later used their ideas to make our adaption. Presumably Woolworths listened to the same experts.
You can see how it works here, and as you can see it's exactly the same as ours.
You must have a card and to get it you must supply Woolworths with your personal details. This is because the value of the customer monitoring, email addresses and information is considered to be worth 1% and Woolworths are not giving that 1% up.
Then when you purchase selected products, in their case the items marked with an orange ticket, your account collects Woolworth's dollar (points) on your card.
When your account reaches in Woolworth dollar (points) $10, you get $10 off your NEXT eligible purchase. There is no part payment accepted like some rewards programs have.
If you do the figures, it works out to for every $800 of purchases, their customer will get back about $10, or 1.25% assuming they do redeem it. In practice, many do not redeem it so reducing the cost somewhat.
The payout figure itself is not surprising as 1% cost as I stated is about what most loyalty programs work on.
Note the Woolworth rewards program is not going; I am sure to cost Woolworths 1% as I can guess who will be forced to pay for it!
Here are some links with more information.
http://mumbrella.com.au/woolworths-faces-protracted-battle-to-maintain-…
http://mumbrella.com.au/woolworths-axe-qantas-frequent-flyer-points-rew…
http://www.dailytelegraph.com.au/business/companies/woolworths-ditches-…
The system itself is a tested and proven system and is available to all our clients in our software.
