There are reportedly some big changes coming to Australia’s loyalty program landscape. And even though the changes might prove to be ultimately beneficial to the customer experience in the long run, some traditional consumer behaviors might be disrupted in the meantime.
That’s a chance that Woolworths seems to be willing to take, however, as it will soon no longer offer Qantas Frequent Flyer points in conjunction with its popular “Everyday Rewards” loyalty program.
The move comes as part of a rebranding effort that will see Woolworths, Australia's second largest supermarket operator, make a number of fundamental changes.
Not only will the loyalty program change its name from Everyday Rewards to “Woolworths Rewards,” it will also soon begin offering “Woolworths Dollars,” which can be collected and redeemed toward in-store discounts and various purchases.
“Woolworths Rewards is totally re-inventing our loyalty program, putting our customers’ needs first,” said Brad Banducci, Woolworths food group managing director. “Woolworths Rewards gives customers money off their shopping, fast. The beauty of the program is customers just shop as normal and the rewards look after themselves. It’s 100 per cent relevant to 100 per cent of our shoppers, totally automatic and hassle free."
Previously, Woolworths allowed customers to earn Qantas Frequent Flyer points for every dollar spent on purchases exceeding $30 during a single visit. While the coming changes will be significant, the brand has assured customers that some of the old elements of Everyday Rewards, such as targeted offers and fuel discounts, will remain.
For customers still wishing to collect Qantas Frequent Flyer points, there is still a little time remaining.
“We would like to let you know that whilst Woolworths are changing their rewards program, Qantas Points can still be earned with Everyday Rewards as per today until 31 December 2015,” a spokesperson for Qantas said in an official statement. “We are working with Woolworths on a new partnership from 2016, and will keep you posted.”
There is some speculation that a cost cutting war between Woolworths and Coles may be somewhat responsible for the loyalty program’s new direction. The idea is that the funds dedicated to supporting the Qantas agreement might be better utilized as part of a new cost reduction initiative.
Woolworths Rewards is set to launch on October 28.