Morrisons trials loyalty schemes
The supermarket is testing three new loyalty cards as part of its turnaround strategy.
Morrisons is trying out a new loyalty scheme with shoppers in selected areas.
It involves three cards - Match & More, Miles More and Yello - which will enable customers to earn points to save money and collect instant rewards.
Morrisons has had to play catch-up to rivals Tesco, Sainsbury’s and Asda in the face of declining sales. Its strategy to reverse this includes rolling out online deliveries, developing smaller convenience stores and battling competitors on price.
But launching a new loyalty scheme is also seen as essential to the store’s future success.
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What we know
Morrisons has been tight-lipped on how its cards will work and has only said it will be "trialling a number of propositions".
Match & More is thought to work in a similar way to Tesco’s Price Promise, Asda’s Price Guarantee and Sainsbury’s Brand Match, which broadly pay shoppers back what they could have saved on their shopping if they had shopped at rival supermarkets. But as the name suggests shoppers will be able to get ‘more’ with the Morrisons card; it’s believed the card will also allow customers to earn points for further rewards.
The Yello card will offer instant rewards at checkouts. Morrisons declined to comment on what these would be, however the scheme may mimic Waitrose’s hugely popular offer, which gives myWaitrose cardholders a free tea or coffee every day.
The Miles More card will build on the existing Morrisons Miles card, which allows shoppers to accumulate points on fuel. Currently cardholders can collect 10 point for every litre of fuel they purchase with 5,000 points equating to a £5 Morrisons voucher. However, it’s not clear if the Miles More card will carry on the same scheme.
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How other schemes work
Whatever Morrisons' loyalty schemes entail, they’ll have to compete with some pretty well established programmes from Tesco and Sainsbury’s.
Tesco customers can earn loyalty points with their Tesco Clubcard. You can collect one point per £1 spent with the store and each point is worth 1p. So 500 points can be turned into £5 worth of vouchers. But with Clubcard Boost you can exchange your vouchers for a higher value reward. Read How to boost your Tesco Clubcard points for some tips on building up your balance.
Sainsbury’s doesn’t have its own scheme like Tesco but uses Nectar, the UK’s biggest loyalty programme, to reward customers. Nectar allows you to rack up points at Sainsbury’s as well as a variety of other retailers. You can collect two points for every £1 spent in Sainsbury’s stores and on its website. Each Nectar point is normally worth about 0.5p so every 500 points is worth £2.50.
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Comments
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I'm trying to find a job for a student with a bachelor's degree in business and a Master's degree in International Business. Morrison's should hire her,she could come up with much better marketing ideas than tired old loyalty cards. Aldi have better trained staff, fresh food, less choice but keen prices. Morrison's need to compete and diversify their product lines into none food too. Aldi's special buys are a great success and snapped up by shoppers. Morrison's, Tesco and Asda need to wake up, the discounters are taking their trade and gimmicks won't help them. They need a new marketing strategy, better staff training, well organised stores, fewer fat cats at the top, diversity and CSR all combined.
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Sir Ken was correct. Dalton and his friends in the City are clueless. Not 'investing' in city centre stores, home delivery and disloyalty cards was a good strategy. We don't need to pay Boards of Directors vast fortunes to copy everyone else. School leavers are a lot cheaper.
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Again, Britain is lagging behind. A few years ago I tried to explain on Lovemoney or Lovefood that Lidl and Aldi who were being ostracised and derided by many would inevitably take the lead. As I pointed out at that time, these two suppliers in their native country were some 30% cheaper than in UK. and 50% cheaper than the the 'Big 4'. Morrisons is now trying to emulate others with silly cards. Take a careful look at the German efforts first! The people are looking for reasonable quality at the BEST price. Instead of running a food business to make money from assets or give shareholders a larger slice of the cake run a proper food industry for EATERS not INVESTORS, within reality of course. Oust the greedy Tesco and Walmarts and install a healthy Morrisons by running the business the German way and see your profits and respectability rise. During my lengthy successful business life my LOGO was always...QQP....Quality, Quantity, Price!
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08 June 2014