Contact’s loyalty scheme offers fuel savings

Contact Energy has unveiled new power plans with fuel discounts that it says will be up to five times more generous than those offered through its 16-year relationship with Fly Buys.

The power company announced last month that it would end its relationship with Fly Buys and instead join the AA Smartfuel loyalty scheme.

Contact Energy said its new approach to loyalty was about providing savings, rather than the opportunity for customers to earn things.

Chief customer officer Vena Crawley said this was based on customer feedback and changes in rewards schemes over the past year.

‘‘Our customers have overwhelmingly told us they want a more instant and generous rewards programme.

‘‘They want compelling discounts and cash back in their pockets.’’

As such, it had introduced three new electricity plans based on its relationship with AA Smartfuel, which has about 2.2 million members.

These offer fuel discounts of between 10 cents and 50c a litre every month.

The 10c a litre offer was offered for an open term plan, and came with an 18 per cent prompt payment discount, which could rise to 20 per cent if you paid by direct debit and chose to receive your bills online.

For a year-long fixed-term contact, customers would receive a 30c a litre discount, with a 20 to 22 per cent prompt payment discount. The two-year fixed contract gave customers 50c a litre off, and a prompt payment discount up to 12 per cent.

The fuel discount could then be accumulated with other rewards earned at AA Smartfuel’s 1400-plus retailers.

Crawley had been testing the programme for a few months, and was on average accumulating fuel discounts worth $1.27 a litre before Contact’s discount was added.

You could then gift that discount, which Crawley did to his sister, who in turn got half a tank of fuel for free.

Overall, it would be on average three to five times more generous as a rewards programme, he said.

It has been a period of significant change in the loyalty scheme sector.

Air New Zealand’s Airpoints programme and Fly Buys also split last year.

Crawley, a former director at the company which runs Fly Buys, said Fly Buys had been a good partner for 16 years but while it was the most innovative when it first came to market, that was then.

‘‘More people drive rather than fly in this country ... this is more of a universal appeal to our customer base than flights.’’

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"They [customers] want compelling discounts and cash back in their pockets." Vena Crawley Contact chief customer officer