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With grocery sales projected to increase by 24.01 % from 2023 to 2029 reaching nearly USD 629.76 billion, several major grocery brands in the Asia-Pacific region and the Middle East are faced with stiff competition and the challenge of standing out in a crowded market. Here’s a secret weapon that grocery brands are using to cut through this noise and cater to the unique preferences of APAC and Middle Eastern customers- a grocery loyalty program.
What is a grocery store loyalty program? A grocery store loyalty program is a marketing strategy that rewards customers for their repeat purchases with the grocery brand, either instore or online, by offering incentives
In this article, we’ll explore the top 5 grocery retail loyalty programs in APAC and MEA that are setting the standard for customer engagement and delight.
With over 500 branches across the UAE, Lulu Hypermarket is one of the most popular and favorite retail companies in the region. Their loyalty program Lulu Hypermarket Happiness Program in the United Arab Emirates (UAE) has become synonymous with great promotions and instant discounts.
Shoppers can join the program either online via the website or through WhatsApp, making it accessible to a wide audience. Points are earned with every purchase above 1 AED and can be redeemed for discounts on future purchases at Lulu stores. Following a tier-based structure, the program rewards customers on their birthdays and gives exclusive privileges and offers to its members.
Taking advantage of the rising dependency on mobile apps, Lulu has made a dedicated mobile app available which enables customers to conveniently track their transactions and rewards, enhancing the overall shopping experience.
Having a dedicated mobile app opens abundant opportunities for Lulu to nurture customer loyalty. By adding more updates in the future they can leverage gamification, hyper-personalization, and other aspects that will create a long-lasting relationship with customers.
Here’s how you can use Capillary’s Engage+ for Effective Mobile Marketing
New World Club Card in New Zealand offers special discounts exclusively to its members. What sets this program apart is its gamification aspect, where customers can participate in exclusive competitions, adding an element of excitement to their shopping experience.
According to a recent study, 60% of the customers who interact with gamified elements typically make a purchase. These statistics work in favor of New World Club Card who use gamification to drive their business and also engage their customers.
New World Club Card also leverages coalition loyalty features and allows its members to enjoy unique discounts through Club Deals and have the choice to earn Flybuys or Airpoints Dollars™. This program effectively combines savings and entertainment, making it a hit among New Zealanders.
Here’s how you can use coalition loyalty for your business
Amazon’s subscription-based loyalty program Prime is one of the world’s premier loyalty programs with 54 million members across the globe. Amazon Fresh is Amazon’s online grocery store where people can order their groceries. The customer can find Amazon Fresh under the Amazon app and place their order when they want. The order will be delivered to them at the earliest available slot.
In India, Amazon Fresh, a subsidiary of the Amazon Prime benefit, has made a significant impact by catering to price-sensitive customers. In India, 50% of the people surveyed showed affinity towards preplanning their groceries. Combining the best of both of these customer behaviors, Amazon Fresh tapped into the market offering convenience and massive discounts to their member customers. The Prime benefit that is common around all its verticals, free delivery made Amazon Fresh a go-to grocery shopping platform for Indian customers. Spread in more than 50+ Indian cities (Tier 1 and Tier 2 included), Prime’s Amazon Fresh has captured the hearts of budget-conscious shoppers.
By understanding customer behavior and making it a significant part of its strategy, Amazon Fresh was able to become a reliable and successful grocery loyalty program across the country.
Cold Storage, a well-established supermarket chain in Singapore, had recently shifted from its previous loyalty program Cold Storage VIP to a newer version by coming under Yuu Rewards Club. This strategic move by Cold Storage has significantly expanded the horizons of their loyalty program, bringing a new level of experience and value to their customers. Cold Storage uses important regional festivals like Chinese New Year to give more offers to its customers. One such offer is free goodies from Cold Storage for a minimum spent of $50 if the customer connects their credit cards with their Yuu Rewards account. Another option is for customers to be able to earn more points during the festival time, encouraging them to make more purchases from Cold Storage.
Since Yuu Rewards Club has close to 1000 popular brands under its umbrella, it offers a robust coalition loyalty program. This coalition approach offers consumers of Cold Storage greater convenience and flexibility as they can now redeem their points across an array of Yuu partner brands.
The co-branded credit card issued in partnership with DBS banks makes it easier for members to collect points faster.
With a staggering 14 million members across Australia, Everyday Rewards has captured the loyalty of the whole nation. The program’s simplicity and transparency are its strengths. Members earn a minimum of 1 point for every dollar spent, and they can easily boost their points through the Points Booster feature.
The program allows flexible redemption options, including discounts on future shopping, options for Christmas savings, and even Qantas frequent flyer program points. The program also allows reward redemption at multiple touchpoints, including both offline and online store checkouts.
Everyday’s mobile app makes it more convenient for users to earn and redeem rewards and even track their point balances. The digital wallet in the app feature makes transactions easier than ever for their loyal members.
Everyday Rewards has set the gold standard for loyalty programs in Australia.
As the grocery retail industry in the APAC and MEA regions continues to grow, loyalty programs have become a pivotal tool for brands to stay competitive and retain customers. These top 5 grocery retail loyalty programs have their unique strengths and cater to the specific needs of their customer base. By offering discounts, convenience, and exciting rewards, these programs are not only driving sales but also enhancing the overall shopping experience for consumers in these regions. Capillary provides an end-to-end tech stack and consultancy services to help grocery brands run successful businesses by nurturing customer relationships for the long run.
Contact our expert now and we would be happy to show you how.
1.What makes a grocery loyalty program successful in APAC?
A grocery loyalty program is successful in APAC when it offers personalized discounts, easy-to-use mobile apps, and integrates with popular payment methods to provide a seamless and rewarding shopping experience.
2.How can grocery stores in the Middle East enhance customer loyalty?
Grocery stores in the Middle East can enhance customer loyalty by offering exclusive member discounts, partnering with local brands for unique rewards, and providing a convenient and engaging digital experience.
3.Which grocery loyalty programs are leading in customer engagement in the UAE?
Leading grocery loyalty programs in the UAE include Carrefour’s MyClub and Lulu Hypermarket’s Lulu Points, which offer personalized rewards, cashback, and special discounts to enhance customer engagement.
4.What are the key elements of a successful loyalty program for grocery stores in India?
The key elements of a successful loyalty program for grocery stores in India include personalized offers, integration with digital wallets, a user-friendly mobile app, and regular promotions to keep customers engaged and returning.
5.How do loyalty programs benefit grocery retailers in Singapore?
Loyalty programs benefit grocery retailers in Singapore by increasing customer retention, providing valuable customer data for targeted marketing, and enhancing the shopping experience through personalized rewards and exclusive offers.
