Modern warfare: Which supermarket loyalty program outguns the rest?

Coles’ newest piece of marketing ammunition, the revamped My5 Flybuys loyalty card, has been mailed to eight million Australian households in the largest direct mail-out of its kind. But how does Coles’ latest weapon stack up against other loyalty programs offered by its competitors: Woolworths, Franklins and IGA?

To find out, we took the average weekly grocery budget of $156 (based on Roy Morgan research) to see which loyalty program deserves to win over your wallet. Time for Mozo to wear the khaki and head straight into the supermarket battlefield...


Supermarket: Coles
Loyalty Program: Coles My5 Flybuys

The Coles My5 Flybuys loyalty scheme is a two-pronged assault against its supermarket rivals, teaming up its premier Flybuys program with the “world first” My5 offer. With its Flybuys program, you’ll earn one point for every dollar spent at Coles supermarkets, Kmart, Target and other participating stores.

The new My5 Rewards also gives Flybuys customers 10% off five products of their choice whenever they spend over $50. So not only will your everyday purchases go towards your next holiday, but you’ll also be able to trim your weekly grocery budget. Coles is spruiking this as a "world-first", but is it just another marketing stunt or a genuine cause for celebration for consumers?

To find out how much shoppers can really save with my5 rewards, Mozo combed through the 800 products eligible for a my5 discount, selected the most expensive items that the average family of four might buy at the supermarket on a weekly basis, and crunched the discounts. According to our calculations, the average Coles shopper can save around $6 a week - a decent chunk of change - if they load their My5 product list with the most expensive single items that they purchase on a weekly basis.



Supermarket: Woolworths
Loyalty Program: Everyday Rewards

If you’re a frequent traveller, you’ll be tempted to enlist with the “The Fresh Food people.” The Woolworths Everyday Rewards loyalty program differs from its rivals, by linking to the established Qantas Frequent Flyer rewards program. You’ll need to sign up as a Qantas Frequent Flyer member to start racking up points. Fortunately, signing up as an Everyday Rewards cardholders means you’ll be spared the standard $82.50 joining fee.

You’ll earn one point per dollar spent for transactions over $30 at Woolworths and Big W stores, plus you’ll also receive a 4c fuel voucher to be used at Caltex Woolworths and Safeway bowsers. You can choose to redeem your points as Woolworths vouchers, or spoil yourself by pouring over the extensive Qantas Frequent Flyer rewards catalogue. However, you’ll need to rack up 15000 points to earn $100 worth of credit.  We calculated that - if you include the fuel discounts - your total weekly savings will average around $3.


Supermarket: IGA
Loyalty Program: My IGA loyalty card

Playing also-ran to the major commercial supermarkets is tough, but the Independent Grocers of Australia continues to treat its customers with a decent loyalty program. With the My IGA loyalty card, you’ll earn one point for every dollar spent, plus you’ll also receive bonus in-store benefits.

Each IGA supermarket is independently managed so benefits will vary store to store. Some stores will offer My IGA specials prices on selected products while others will award extra loyalty points. Points expire after 180 days and you’ll redeem $5 of extra credit on the card for every 500 points. But remember, most IGA stores will donate a portion of your grocery bill to nominated local clubs and charities every time you whip out your loyalty card. You can’t put a price on this feel good factor.   According to Mozo's number crunching, you can save an average $1.56.


Supermarket: Franklins
Loyalty Program: Franklins Loyalty Card

The loyalty program offered by Australia’s original discount grocer is relatively straightforward. The Franklins Loyalty Card will earn one point for every dollar spent, with the chance to score bonus points during special promotions. Points can only be redeemed in bundles of 500 points, which equates to a $5 discount on your next grocery bill, or a $5 gift voucher.

Plus, your hard earned points will expire within 18 months and can only be redeemed at one nominated store, which makes the Franklins Loyalty card an extremely old-fashioned weapon of choice.  According to Mozo's number crunching, you can save an average $1.56 - the same as for IGA.


So who comes out on top?

If you simply want more bang for your buck in the form of supermarket vouchers and discounts, the loyalty points programs offered by IGA supermarkets and Franklins offer the fastest earning rate. It will take longer to redeem rewards with the Coles My5 Flybuys and the Woolworths Everyday program, but you’ll have a much greater choice of rewards. However, Coles’ newest marketing weapon in the form of the My5 offer means you can save a decent amount every time you check out, and for this, the revamped Coles My5 Flybuys program wins hands down.

Based on our calculations the new Coles loyalty scheme offers the average Australian household double the savings of its closest rival, the Woolworths Everyday Rewards program. However, shoppers need to carefully select their my5 discount list to maximise their weekly savings.







By Kirsty Lamont, Mozo.com.au