Since 1996 New World has been part of the Fly Buys loyalty programme. This has delivered great benefits for all:
- Customers earn Fly Buys points on their highest frequency purchase – groceries.
- New World benefits from increased customer visits and the $25 spend threshold, and utilising the customer data and direct channels
- Fly Buys card profile is elevated, and card usage promoted.
However analysis in 2012 indicated only 51% of New World customer visits were accompanied by a Fly Buys card, and research indicated only 20% of visits were driven by Fly Buys earning.
To increase its share of wallet and better combat Countdown’s well-established Onecard, New World sought a way to make its loyalty programme much more compelling.
In June 2014 the New World Clubcard was introduced in South Island stores. A new card offering a choice of Fly Buys or Airpoints, and delivering instant discounts in-store, was sent to 300,000 loyalists (existing high users of Fly Buys or Airpoints in New World), supported by an aggressive in-store sign up programme.
This revamped loyalty offering has driven a sales increase of 11%, visitor frequency by 21%, and improved researched loyalty metrics for New World by 20%. What’s more, it has reached near saturation with over 93% of the target audience holding a card, and 82% of visits using one. Due to the massive success in the South, the North Island is accelerating IT upgrades so that they can implement it sooner than originally planned.
What’s more, latest research indicates that Clubcard has now overtaken Onecard on the important ‘rewards me for my loyalty’ research metric, a 29% increase from when it was Fly Buys. That’s why New World Clubcard is arguably New Zealand’s best loyalty programme.
1 Big Picture Research August 2012