Loyalty Works’ Post

For a long time, earning points for vouchers was the standard supermarket loyalty scheme mechanic. But there's been a marked shift in the last few years towards supermarkets leading with loyalty card pricing over the traditional earning of points for money off (although they're currently still retaining these too). What's interesting in the CMA's review is whether customers, especially younger customers completely trust this loyalty mechanic. Loyalty price offers are saving customers 17-25% on average across the 5 supermarkets CMA reviewed (Tesco, Sainsbury's, Morrisons, Co-op, Waitrose). But the CMA also said...... "A significant proportion - 40% - say they do not trust loyalty prices are a genuine saving on the usual price." "More than 70% of 18 to 29-year-olds thought that the price for those without a loyalty card or app had been bumped up" There's no doubt that loyalty pricing has become a key mechanic for supermarkets in the quest for increasing share of customers' spend, and where it is genuinly cheaper, a much needed help for customers. The questions for me are what's going to happen next...... ❓ will we see further competition in this space pushing the pricing offers harder as it becomes less differentiating amongst the supermarkets? ❓ how the supermarkets will tackle the questions of "trust", especially with younger customers? ❓ and whether there will be a reset at some point of other parts of the loyalty value proposition, and/or other differentiating offers coming to market? What do you think? #supermarkets #loyaltyschemes #customervalue

Loyalty pricing at UK supermarkets does offer “genuine savings” but customers should still shop around as it is not always the cheapest option. The Competition and Markets Authority said that after analysing 50,000 loyalty-priced products, it found 92% offered savings on the usual price. https://lnkd.in/eygu8J5T

💳 Loyalty Cards: Genuine Savings or Marketing Hype? 🛒 The UK's competition watchdog, the CMA, recently investigated whether supermarket loyalty schemes genuinely save customers money. Their findings? Loyalty cards do offer real savings, with shoppers saving an average of 17% to 25% across major stores like Tesco, Sainsbury's, and Waitrose. So, what’s the key takeaway? Loyalty cards can help you save, but it’s still important to shop around for the best deals! 💡 What do you think? Share your thoughts in the comments! #LoyaltyWorks #LoyaltyCards #CustomerSavings #SmartShopping

Competition works: UK grocery retail One of the CMA’s priorities is to make sure people can get great choices and a fair deal, starting with essentials such as feeding ourselves and our families. As part of our programme of work in groceries, and on the back of concerns heard from consumers and consumer groups, we've been investigating loyalty pricing in supermarkets to see if it offers genuine savings to shoppers. We've analysed 50,000 loyalty-priced products and found that the vast majority offered genuine savings against the usual price. We hope this reassures UK shoppers that they can be confident that they are getting a fair deal. And so this is another example of vibrant competition in a market driving positive outcomes for customers. Our review also shows that loyalty prices in a given supermarket are not always the cheapest option - for the very same reason: in markets where there is healthy competition to win customers, where people have a real choice, it pays to shop around. #consumerchoice #competition #innovation

🔍 Is Your Loyalty Card Really Saving You Money? The Competition and Markets Authority (CMA) recently found it “unlikely” that supermarkets are misleading shoppers with loyalty promotions. This comes after a thorough investigation into whether non-loyalty prices were artificially inflated to make loyalty card programmes more appealing. Amidst the cost-of-living crisis, supermarkets like Sainsbury's’s Nectar Card and Tesco Clubcard have faced scrutiny for offering lower prices to loyalty members, leaving non-members paying more. Further findings will be published this autumn as the investigation continues. What are your thoughts on this? Are loyalty programmes truly beneficial, or just a marketing tactic? #Marketing #ConsumerRights #LoyaltyPrograms #CostOfLivingCrisis

⚖️ The Competition and Markets Authority has ruled that British supermarket prices offered through loyalty schemes offer genuine savings. ⚖️ It launched the review in January to consider the impact of loyalty schemes on shoppers. https://lnkd.in/ebEe-24C

Clubcard, Nectar, and Sparks are loyalty schemes offered by supermarkets such as Tesco, Sainsbury's, and Waitrose. Despite less generous discounts over time, some schemes still offer significant discounts for cardholders, including exclusive "loyalty prices". Here's what shoppers think of different supermarket loyalty schemes around the UK: https://bit.ly/4b6YeVV #LoyaltySchemes #CustomerRetail #LoyaltyPrices

Four of the UK's biggest supermarkets - Tesco, Sainsbury’s, Asda and Morrisons - are now offering members of their loyalty schemes bonus points if they hit spending targets, leading to fears of consumer overspending: https://lnkd.in/eTyheGtH Here's some tips on how to save money on your food shopping: Learn prices: Get to know the cost of the items you buy regularly so you can spot what is a good offer and what is not Compare price per 100g - Look along the shelf at similar items as loyalty prices might not be the cheapest option Set a budget and stick to it - Often supermarket vouchers or challenges will require you to spend more so don't be tempted to overspend Stock up - If you do want to take advantage of a money-off voucher then bulk buy staples like pasta, rice or tinned food that have a long shelf life Use tech - Use independent supermarket comparison apps to save your favourite items and get alerts when they go down in price

British supermarket prices offered through loyalty schemes do provide genuine savings, the Competition and Markets Authority has said. George Lusty, the CMA's interim executive director of consumer protection, stated, "We found that almost all the loyalty prices reviewed offered genuine savings against the usual price – a fact we hope reassures shoppers throughout the UK." #UK #retail #loyaltyschemes #pricing https://lnkd.in/epCPSHRz

Supermarket loyalty prices offer genuine savings, regulator rules Supermarket loyalty schemes offer genuine savings for shoppers, according to the competition regulator following an investigation into claims of price manipulation. The Competition and Markets Authority (CMA) said its review of 50,000 loyalty priced products showed that 92% offered genuine savings against the usual price. That was despite 55% of shoppers thinking "usual" prices were - https://lnkd.in/dxixb2jn