A new Australian-invented smartphone app is being promoted to replace customer loyalty cards in restaurants, cafes, and shops in Australia. The Wealie iPhone app, created by Australian Patrick Schilling, was launched this week. The app is designed to replace some of the estimated 18 to 20 million loyalty cards that currently printed each year in Australia. After downloading the app, customers scan a Quick Response (QR) code in participating venues (QR codes are a type of matrix barcode, consisting... ...Read more »

* Pre-tax profits up 10%; trading profits rise 12% * Turnover climbs almost 7% * Asia trading profits increase 18.9% UK retail giant Tesco yesterday (20 April) booked a 10.1% rise in annual profits as earnings in Asia jumped and the company boosted its domestic business with investment in loyalty scheme Clubcard. Tesco reported underlying pre-tax profits of GBP3.34bn (US$5.13bn) for the 52 weeks to 27 February, a rise of 10.1% on the year. Trading profit was up 12.3% to GBP3.41bn, while group sales... ...Read more »

The latest Nielsen Top 100 Brands – released this week – has shown food products dominating the leading grocery products in 2009, with Cadbury claiming top place in consumers’ hearts. The UK-based confectioner – soon to be purchased by Kraft – saw their Cadbury brand surpass the ever popular Coca-Cola beverage and Bega cheese. Rounding out the top five were Smith’s and Kleenex Cottonelle. “Recognising that consumers own and determine the performance and... ...Read more »

Analysis of supermarkets’ loyalty schemes by consumer group Choice has questioned the merits of rewards programs for shoppers, arguing that most will have to wait a long time before receiving any real benefits. The consumer group argues that loyalty schemes can discourage consumers from finding better buys elsewhere and encourage them to trade large amounts of personal data which may be worth much more than any rewards. Choice research found rewards programs offer significantly less than a... ...Read more »

Woolworths’ Everyday Rewards scheme has helped boost sales at Australia’s largest supermarket chain, according to its Chief Executive. Michael Luscombe, speaking at a corporate breakfast earlier this week, said that ever since the tie-up with Qantas began – which sees their customers receive frequent flyer points – the spend per customer at their supermarkets has risen. “We got a lift in our basket size almost overnight,” he said, according to The Australian. The... ...Read more »

The global financial crisis has not only impacted grocery purchasing behaviour but also the adoption of loyalty cards, usage rates of Australia’s largest loyalty card scheme suggest. General Manager of Coles’ FlyBuys program, Phil Hawkins, said the number of redemptions for credit card repayments and shopping gift vouchers had hit an all-time high of 82 per cent in the five-month period from January to May, 2009 as consumers sought to reduce the size of their bills. This compares to... ...Read more »

Recent reports in the Fairfax press and Australian Food News suggested that Coles Supermarkets is about to review its customer loyalty strategy. According to Joe Blundell, the Coles Marketing Director, the current Giant Gift Card Giveaway promotion May 7-July 31 2009 is in part, a trial of a new process that provides shoppers with instant cash rewards for their regular shopping. It was suggested that this more instantaneous approach will see FlyBuys phasing out domestic flights rewards and developing... ...Read more »

Qantas, Australia’s largest airline today announced the launch of its loyalty program with Woolworths, beginning 22 June. Customers who participate in the Everyday Rewards program at Woolworths stores will now have the opportunity to earn Qantas Frequent Flyer points. The loyalty alliance, which was announced in December 2008, would give Qantas Frequent Flyer’s 5.6 million members another way to speed-up their accumulation of points. Of the Woolworths group, Woolworths Supermarket and... ...Read more »

Coles is reviewing its loyalty program after discovering that customer demand for flight rewards pales in comparison to more immediate rewards such as cash to spend in-store. Both the major supermarket chains have flagged changes to their loyalty rewards programs in recent months as they look to enhance their understanding of customers and tailor more effective offers to suit their needs. Woolworths, Australia’s largest supermarket chain, outlined a relationship with Qantas late last year,... ...Read more »

Supermarkets remain on top when it comes to customer loyalty, according to new research from the UK. The survey found supermarkets were rated most highly (72%) with consumers when asked which sectors they felt most loyal to. Perhaps surprisingly, banks remain on a par with supermarkets, attracting the same degree of loyalty. The study, carried out by researchers Ipsos MORI on behalf of The Logic Group, suggested loyalty to supermarkets and banks “may suggest that for many people loyalty today... ...Read more »