Coles puts loyal customers in the picture

COLES is getting ready to roll out a $10-a-month loyalty subscription program that provides flybuys members with free deliveries, discounted groceries and access to an online movie streaming site.

Coles has started testing the offering, dubbed Flybuys Max, among a small group of customers but plans to launch it nationally.

The offer mimics the Amazon Prime offer used with great success by the US online retail giant, which provides members with free deliveries and access to Amazon’s video streaming service.

Under the Coles offer members pay $10 a month, or $100 a year, and receive free delivery on online orders above $50.

They are also entitled to a 5 per cent discount on their fresh groceries, such as fruit, vegetables and meat, or can choose instead to receive 10 flybuys points for every $1 spent on fresh food.

Flybuys members normally earn 1 point per $1 spent.

Subscription members will also receive unlimited video streaming from online movie rental site MuviNow, as well as discounts on cinema and theme park tickets and bookings made through the flybuy’s travel portal.

Coles loyalty, insights and flybuys general manager Alex Chruszcz said Flybuys Max was one of many new loyalty offers in the works.

“It’s currently being tested with a small group of members so that we have the best possible offers available when it rolls out nationally,” Mr Chruszcz said.

“The feedback so far has been very positive and the plan is for the offers to evolve.”

Coles did not say when it would launch the offer.

Loyalty is becoming a new battlefront in the supermarket wars with a report from investment bank UBS saying the programs have emerged as the second most important driver of customer traffic.

“Consumers are experiencing promotional fatigue,” analyst Ben Gilbert wrote in a note to clients.

“Retailers who differentiate and invest in loyalty — while maintaining price discipline — are best positioned.”