New World Clubcard has been one of the most successful loyalty programmes launched in years. Within a few months of launch in South Island stores, it had risen to represent 86% of all sales being accompanied with a swipe, and 70% of all visits, compared to only 55% when it was just Fly Buys.
The technology that underpins Clubcard is state of the art.
Ambitious from the start, the objective was to transform New World into a store that understands its customers at an individual level and provide relevant data-driven offers in real time at the point of sale (POS). Anyone who has experience working with store POS will understand the power of immediacy, the demand on systems, and how to manage redundancy. And just for some scale context that’s: 141 stores, 141 individual owners, 20-40 lanes per store, 750,000 customers and 1.8m transactions a week nationwide.
Only by developing a world class system solution could it be hoped to undertake a sophisticated integration project to make it all work together with legacy, store and regional systems in real time, whilst also coping with a major IT integration and upgrade project in the North Island.
Then there’s the third-party systems including website, email platform, Fly Buys and Airpoints. The smart solution focused on making it work in one region – South Island – first and then modelling North Island on that.
All hard benchmarks have been smashed:
1. Increase total store sales by 5%
The target was more than doubled, delivering an 11% increase in sales. A share point in supermarket sales is huge, so 11% is worth millions.
2. Increase visitor Frequency by 10% over Fly Buys
Frequency numbers have shot up thanks to Clubcard, delivering 21%, outperforming the target by 100%.
3. Acquire an additional 10% programme members over Fly Buys numbers
Having been in the market for 18 years, Fly Buys was potentially near saturation point. But an additional 26% over original numbers were signed up, and by time of writing over half the population of the South Island have a Clubcard, and over 60,000 have been acquired in New World North Island stores after just a few short weeks in an aggressive ‘loyalty war’.
4. Increase share of sales to loyalty customers by 15%
Clubcard has been phenomenally popular, delivering 86% of all sales with a loyalty swipe in the South Island, and is well on the way in the North Island with over 50% of all sales in just a few short weeks.
The results are phenomenal – Clubcard SI is used by one in two people (over 450,000 active cards), representing 86% of sales, and delivers up to 40% response on personalised offers. North Island, although only launched in mid-2016, is already delivering matching levels of engagement, despite a massive play by many loyalty programmes in the same period.
The judges were impressed by Foodstuff’s demonstration of a clear and strong strategic vision to go it alone and create their own loyalty programme. In their view, this was a large and very complex undertaking which was well executed and which delivered excellent results with strong customer uptake and engagement.