Supermarkets have several ways to persuade customers to choose them for their weekly shop. Loyalty prices, discount vouchers, or even money-off experiences are becoming more commonplace and are giving customers more reason than ever to change up their routine.
The rise of spend-and-save offers
It’s not just supermarkets that are adopting spend-and-save offers. In retail, Dunelm offers 10% off when you spend £20 through the app. They offer free delivery on orders over £60, which gives people an incentive to try the app and then reach the basket value. Sephora is also offering 15% off with the code LOYALTY15. This can be applied to qualifying purchases.
Takeaway services attach discounts to minimum order values. Local apps like Barlick Eats offer a voucher worth 10% of the total value of your last five orders with a takeaway. This encourages loyalty with a single establishment and customer spend, as the money spent directly correlates to the discount given when five orders are placed.
Online bingo sites use related promotions. Bingo promo offers can include 40 free spins when players spend £40, and access to free bingo rooms. This lowers the entry point for people who have never played bingo, and it also offers the chance to play different types of games.
As supermarkets often operate in competitive markets, giving back is the best way to incentivise a customer to try somewhere new. Many shoppers are loyal to a specific supermarket as well, so incentives have to be worthwhile to get someone to switch.
Promotions are also used alongside price matching and own-brand ranges, resulting in a multi-faceted approach that applies savings across whole baskets.
The competition between local supermarkets
Different supermarkets take different approaches to saving. Tesco’s Clubcard Plus costs £7.99 a month and offers subscribers the chance to save 10% off two shops every month. Iceland takes a very different approach, as customers are offered a 10% discount every Tuesday if they are over 60. Both give shoppers a reason to choose them, but at the same time, they encourage different demographics. Sainsbury’s has adopted a more gamified approach.
The supermarket gives shoppers Nectar discounts on their favourite products, with the selection refreshing every week. Games like scratching a virtual scratchcard or entering a prize draw can also be done within the app. Sainsbury’s shoppers can earn Nectar points on certain bonus products too, which contribute to vouchers that can be claimed for money off.
ASDA adopts a similar approach, but instead of having distinctive prices, they translate every penny into a point. By adopting this approach, it becomes easier for each supermarket to target its audience, keeping each one competitive without having to race to the bottom with prices. Spend and save initiatives also work well for customer loyalty, and even though each supermarket is different, there is one common thread.
The terms of saving are clear, and milestones are set. By making the required spend and the reward highly visible, it becomes possible to ensure a transparent process that benefits everyone.
