New World Clubcard – Making Every Shopping Trip More Rewarding: Foodstuffs (NZ) / justone

NEXUS SUPREME // NEXUS GOLD - CRM & DATA MANAGEMENT VISION // NEXUS BRONZE - CUSTOMER & MARKET INSIGHT // NEXUS GOLD - STRATEGIC

The New World Clubcard has been one of the most successful loyalty programmes launched in recent years. Within a few months of launching in South Island stores, it has risen to represent 86 percent of all sales being accompanied with a swipe and 70 percent of all visits, compared to only 55 percent when it was just Fly Buys.

Ambitious from the start, the objective was to transform New World into a store that understood its customers at an individual level and provide relevant data-driven offers in real time at the point of sale (POS). Anyone who has experience working with store POS will understand the power of immediacy and the demand it has on systems. For scale, that's 141 stores, 141 individual owners, 20-40 lanes per store, 750,000 customers and 1.8 million transactions a week nationwide.

Only by developing a world class systems solution could it be hoped to undertake a sophisticated integration project to make it all work together with legacy, store and regional systems in real time. Simultaneously, the system will have to cope with a major IT integration and upgrade project in the North Island. Then there are third-party systems including website, email platform, Fly Buys and Airpoints.

With the New World Clubcard, all hard benchmarks were smashed:

1. Increase total store sales by 5 percent The target was more than doubled, delivering an 11 percent increase in sales.

2. Increase visitor frequency by 10 percent over Fly

Buys Frequency numbers have shot up thanks to the New World Clubcard,, delivering by 21 percent and outperforming the target by 100 percent.

3. Acquire an additional 10 percent programme

members over Fly Buys numbers Having been in the market for 18 years, Fly Buys was nearing saturation point. But an additional 26 percent over original numbers were signed up, and by time of writing, over half the population of the South Island have a Clubcard, and over 60,000 have been acquired in New World North Island stores after just a few short weeks in an aggressive ‘loyalty war’.

4. Increase share of sales to loyalty customers

by 15 percent The New World Clubcard has proved to be phenomenally popular, delivering 86 percent of all sales with a loyalty swipe in the South Island, and is well on the way up in the North Island as it makes up

The results are phenomenal – Clubcard South Island is used by one in two people (over 450,000 active cards), representing 86 percent of sales, and delivers up to a 40 percent response on personalised offers. Although only launched in mid2016, the North Island is delivering matching levels of engagement, despite a massive play by many loyalty programmes in the same period.

The judges were impressed by Foodstuff’s demonstration of a clear and strong strategic vision to go it alone and create their own loyalty programme. In their view, this was a large and very complex undertaking which was well executed and which delivered excellent results with strong customer uptake and engagement.