Britain’s supermarket chains are ramping up their loyalty schemes. Consumers are understandably frustrated and looking for savings opportunities with the current, high food inflation. The competition among major retailers such as Asda, Tesco, and Morrisons highlights different strategies aimed at attracting and retaining customers. This piece investigates various supermarket loyalty schemes. It’s a measure of how well they are delivering meaningful—i.e., real—benefits to shoppers.
Asda has rolled out its new digital-only Rewards app. Now shoppers can easily earn points without having to keep a physical card on them! Customers earn one Nectar point for every £1 spent, both in-store and online. Asda’s deployment is all about convenience, aimed specifically at a younger, more tech-oriented audience that would rather use their mobile than a physical payment card.
At the same time, Co-op keeps on drawing in new members through its relatively inexpensive membership proposition, which asks for a one-off £1 payment to join. The program gives members access to exclusive pricing and price-matching on 100 items with their Aldi counterparts. The Co-op’s battle plan seems rooted in community, capitalizing on its store-local presence to cultivate a devoted customer base.
One popular example is the Morrisons’ More loyalty card, which gives customers five points and a tree for every product bought. This card’s blend of loyalty member prices and relevant daypart offers is a win-win for consumers, with savings opportunities luring shoppers in and incentivizing them to come back. Morrisons’ objective is to improve how customers feel about the retailer by using promotion personalization informed by expected shopping patterns.
Tesco’s Clubcard is still a cornerstone of the loyalty scene, letting customers earn one point for every £1 spent. If you want to redeem the new “Coupon Plus” feature, it’ll unlock more rewards—including free goodies like a bakery sweet treat. Tesco’s strategy focuses on creating a sense of value through tangible rewards that resonate with customers’ everyday shopping needs.
Waitrose’s My Waitrose scheme has received a lot of buzz, having reached over 4.6 million members. This program not only offers personalized money-saving vouchers but includes perks like free hot drinks and 20% off select service counter products. The focus on custom-tailored rewards is a nod to their wealthy customer base looking for top of the line experience.
Marks & Spencer’s Sparks storecard goes in the opposite direction, avoiding points altogether and making appreciation for customers the ultimate goal. Sparks is all about showing appreciation to your customers, whether it’s with scrumptious sweets or handwritten thank yous. Beyond novelty, this strategy deepens the emotional connection between the brand and its buyers. The retailer claims these “Nectar Prices” will save shoppers more than £450 a year on grocery spend. This ambitious declaration puts the company in front of the loyalty race to the finish line.
The increasing use of these loyalty programs is indicative of a larger trend in consumer patterns. According to Mintel’s director of retail insight Nick Carroll, loyalty programs are most effective when they genuinely save consumers money. This is especially urgent today, as food prices are skyrocketing. He explains that most shoppers are in search of “instant savings” instead of waiting for later returns.
As any marketer will tell you, not all loyalty programs are made the same. According to Reena Sewraz, retail editor at Which?, while supermarket loyalty cards can be beneficial, “not all discounts are as good as they appear.” She is worried that millions of prospective riders may lose their chance to benefit from these savings. Age restrictions and digital mandates can leave them shut out.
The Competition and Markets Authority echoes this sentiment, recommending shoppers remain vigilant as “loyalty prices aren’t always the cheapest option.” Consumers should continue to price check across all supermarket banners. That way, they can ensure they receive the most bang for their buck!