Pick n Pay set to hit 10 million smart shoppers

© Valentina Razumova – 123RF.com

Already the largest loyalty programme in South Africa, smart shopper will continue its trend of growth in 2015 and predictions are that the loyalty programme will reach 10 million members by the end of this year, according to Steve Hoban, Head of smart shopper at Pick n Pay.

"Over the past year, the smart shopper programme has undergone a number of fairly significant upgrades. We can now offer our customers coupons and vouchers for discounts that are in line with their personal shopping habits. Furthermore, in a move that we believe is unique to South African retailers, we have also changed the way loyalty programmes work in retail by offering our customers free benefits with third-parties as reward for shopping with us and the value on offer is really compelling if they do."

Third party treats

As an example, smart shoppers can switch R32 worth of points for a R60 voucher to redeem against a Ster-Kinekor cinema ticket, or they can switch R50 worth of smart shopper points for a R150 voucher to spend at Galaxy Jewellers as well as additional benefits and discounts. Other specials in the Western Cape allow smart shoppers to switch R25 worth of points for a R50 voucher to redeem at selected Spur restaurants. Shoppers can also use R86 of points to earn a R172 voucher to Ratanga Junction.

"It's all about giving our customers opportunities to treat themselves and their families in spite of tough economic conditions. It's a value-added benefit we give to our customers simply for continuing to do what they have been doing and choosing to do their shop with us."

Moreover, it works. The level of customer engagement with the loyalty scheme has been consistently increasing over the past year.

"Since September 2014, over 1.6 million vouchers have been issued. This is a million more vouchers than the number of vouchers that were generated over the same period last year. This is due to a continued increase in new smart shoppers joining the programme as well as an increase in voucher redemption and the spending of points per customer.

"This shows us that our customers appreciate the personalisation we are offering them - and they are actively using the programme as a cost-saving tool."

The smart shopper programme, which was launched in March 2011, was the first major grocery store loyalty programme of its kind in the country and records over 10 swipes every second that Pick n Pay stores are open. At well over 9 million smart shoppers, currently more than 10% of South Africans have a smart shopper card.

Matching consumers' needs

Hoban says smart shopper's analytics are used extensively to enable the company to match customer needs and desires very accurately and to provide them with rewards that are timely, relevant and easy-to-use.

"Loyalty programmes are no longer simply ad-hoc reward incentives for loyal customers. They have evolved into highly sensitive vehicles for engagement with customers and a way to show them that they are being heard. The loyalty programmes that will be successful in the years to come are those which make efficient use of the data they generate to adapt and evolve with dynamic customer preferences," concludes Hoban.

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