Woolworths looks to give loyalty a boost

Posted by Daniel Palmer on 12th December 2008

With consumer loyalty now, arguably, more important than ever before, Australia’s largest supermarket operator has teamed with the Australia’s largest airline to create a new loyalty alliance.

Woolworths and Qantas today announced an exclusive Heads of Agreement to create a loyalty alliance, which would begin in the middle of next year.

The new relationship will allow Woolworths customers who participate in the Everyday Rewards program to earn Qantas Frequent Flyer points when they shop for groceries, fuel, packaged liquor, general merchandise or consumer electronics at a participating Woolworths group business.

Details of the relationship and how it will operate, will be finalised over the coming months, when a formal agreement will be signed.

The alliance will unite two of Australia’s most recognised brands and Woolworths CEO, Michael Luscombe, believes the agreement will give a boost to their loyalty program – which currently has 2.7 million customers after launching nationally in February. He has previously reported a desire to increase the number of financial services they offer to create greater connections with consumers – this has already resulted in the launch of the Everyday Money Credit Card with more to come in the next 12-18 months.

“The alliance with Qantas Frequent Flyer will take Everyday Rewards to the next level,” Mr Luscombe suggested. “It will extend the program beyond our existing fuel savings offer and will significantly enhance the value of being a member. No other loyalty alliance could offer our customers such rich rewards, simply for buying their everyday household needs.”

The Chief Executive Officer of Qantas, Alan Joyce said the alliance would offer Qantas Frequent Flyer’s 5.4 million members another way to accelerate their points earning.
“Through their everyday spending, members will have more opportunities to earn points, and the opportunity to double-up on their points every time they use their eligible direct earn credit card, when making purchases at Australian stores within the participating Woolworths group businesses,” he advised.