The sequel trilogy continues …
Walmart in September partnered with HumanaVitality on a program that incentivizes healthier behavior, offering 5% savings on select healthier-for-you products. The program has about 1 million members.
“With [HumanaVitality’s] large population, we’ve got a lot of opportunities to collect data and to understand how this is … changing behaviors of individual shopping experiences,” said Joe Woods, HumanaVitality CEO.
Meanwhile, Safeway’s Just for U program, which launched earlier this year, offering personalized discounts based on past purchases, has enrolled some 4.5 million members to date, the company announced in October, accounting for 40% of sales. The goal is 5 million members and 45% of sales by the end of the year. Also, the company is expected to unveil a new wellness component to the program by the end of the year.
And at press time, Bartell’s announced a partnership with the Seattle-based online rewards program EveryMove to encourage customers to engage in healthy activities like walking, running and visits to the gym. Rewards include Bartell’s gift cards.
The Health Star
Rite Aid was the first to fold in a health-driven component to its loyalty program; as participants move up the Wellness+ ladder, they earn health-related perks, like free healthcare assessments.
Wellness+ membership grew 8% to 25 million, during the company’s recently reported second quarter. Members accounted for 74% of front-end sales, compared with 69% one year ago, as well as 68% of prescription sales.
Importantly, the number of gold and silver members has continued to increase, as well. Gold and silver members show basket sizes about 40% to 50% larger than other members, and almost half shop Rite Aid weekly. The Wellness+ program has also helped Rite Aid improve script count, as it offers big rewards for prescriptions filled — a loyal Rite Aid pharmacy customer can quickly move to Gold status in the program.
The big data Jedi
Nielsen’s SVP consumer and shopper insights Todd Hale points to Kroger’s loyalty card as one of the best examples of consumer data aggregation. “Not only do you save money when you use their loyalty card, but you [also] save money no matter where you shop,” he said of Kroger’s 1-2-3 Rewards Visa Card, which is linked to its loyalty program.
That catapults actionable shopper data to an entirely new level — Kroger knows what its best customers are buying from other retailers.
“If you think about the digital world, we’re going to know where you browse; we’re going to know what you watch; we’re going to know where you are,” Michael Donnelly, Kroger SVP merchandising, recently told analysts. Donnelly outlined a future where personalization becomes so fine-tuned that a customer can walk into the supermarket with a prepopulated shopping list generated by a retailer.