TOP Food & Drug, a banner operated by Haggen out of Bellingham, WA, has been testing a new loyalty card program that it hopes provides more than just discounts to its best shoppers. Employing RFID technology, the card links to an internet-based system to offer recall notifications as well as refunds in the case of price-drops following a purchase or for spoiled items.
Emily Mallahan, director of TOP development at Haggen, told RFID Journal that the chain had not previously used a rewards program because it found such cards primarily provided discounts at the point-of-sale. It was seeking a more "personalized" approach for its customers.
"This stems from wanting to add value," she said. "We wanted to establish an open communication with our guests."
Accelitec's president, Peter Gruman, said the system so far offers three key elements:
Low-price guarantee: Customers are automatically credited whenever an item's price is reduced within seven days. The credit is applied to the shopper's next purchase cost.
Automatic refunds for spoiled product: For instance, if a customer discovers that a gallon of milk had gone bad, she can call the store, provide her card ID number and receive a credit automatically.
Automatic recall notification: Customers are sent an alert to a recalled product either by phone, text message or email.
The card also enables customers to manage their shopping experience online, including inputting a shopping list and tracking previous purchases. Mr. Gruman noted that if the store installs a monitor and RFID interrogator at its entrances, a customer could access her shopping list upon arrival to learn where needed items are located and which brands are on sale.
Four stores have been testing the cards since last fall. Once the test is completed this spring, it may be rolled out to its remaining 14 locations. Approximately 60 percent of the four TOP stores' customers have signed up to use the card since September, with several hundred new applicants added each week. "We feel the program has been very successful," stated Ms. Mallahan. "I think we've just scratched the surface as to what we can do with it."
Not surprisingly, the card does have some discount component. TOP initiated a promotion in which the retailer sent some of its customers an email stating that if they visited the store within 48 hours and spent $25, they would earn an extra $5 discount at the point of sale.
Discussion Question: What do you think of TOP Food & Drug's effort to introduce a loyalty card offering amenities beyond POS discounts? Which added feature do you think provides most value to customers? What else could the card be offering?