Wrap Text
PIK - Pick N Pay Says `Thank You` in South Africa`s First Major Grocery Loyalty
Programme
Pick n Pay Stores Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1968/008034/06)
Share Code: PIK ISIN code:ZAE000005443
PICK N PAY SAYS `THANK YOU` IN SOUTH AFRICA`S FIRST MAJOR GROCERY LOYALTY
PROGRAMME
Retail giant Pick n Pay today launched South Africa`s first major grocery chain
loyalty programme as part of its business strategy, enabling the retailer to
build a stronger relationship with its customers in years to come. The total
capital investment is some R140-million.
Pick n Pay`s new loyalty programme "Smart Shopper" is aligned to global best
practice.
"We`ve been researching consumer appetite for loyalty cards in South Africa for
a number of years, and looked to global best practice for inspiration," said
Nick Badminton, Pick n Pay`s CEO. "What is clear is that a loyalty scheme does
not create loyalty in itself. Rather, it is a medium that allows a retailer like
Pick n Pay to say `thank you` to customers for their loyalty, in proportion to
how much the customer spends. At Pick n Pay, we felt the time was right to do
exactly that," said Badminton.
In the early 2000s, Pick n Pay considered launching a loyalty programme, but
felt at the time that technology was not sufficiently advanced for it to do so.
"However, advances in technology within Pick n Pay have improved so much since
then that we are now able to run the programme efficiently and in a way that
makes sense to customers. This means that we`ll be able to talk directly to them
and their needs by understanding and acting on their requirements," said
Badminton.
Over the past few years, Pick n Pay has invested significantly in global and
local research. This shows that there are numerous of benefits of well-run
loyalty programmes: significantly increased value to the customer; benefits of
employing customer-centric retailing strategies across pricing, promotions and
ranging; improved trade through very targeted marketing and responding directly
to customers` needs; an increase in asset value from taking more customer-
centric informed business decisions regarding site acquisition; store re-fits
and format planning; roll-out of new services and ranges; and successful joint
ventures with suppliers.
Pick n Pay has launched a number of key strategies over the past three years,
including creating a more streamlined supply chain. The efficiencies and
successes achieved in its major R628 million distribution centre in Longmeadow,
Gauteng, will be followed by the rapid rollout of four distribution centres
around the country within the next three years. In addition, the rollout of the
retailing solution, SAP, meets all of Pick n Pay`s requirements for
comprehensive information.
"In light of these changes, the loyalty programme is a significant and
innovative way in which we can ensure that the great value we consistently offer
our customers becomes even more rewarding. We felt we needed to develop a
programme that was not `just another card`. It has to be simple and easy to use,
whilst incorporating our values," said Badminton.
"Loyalty programmes are not new to South Africa, but to date there has been no
dominant grocery loyalty scheme that allows customers to benefit from rewards on
almost every item in their basket. Swiping, points, cash back and coupons are
all familiar and attractive concepts for customers. Together with our
longstanding reputation for offering fantastic value to our customers, Smart
Shopper translates into `great value has just become more rewarding`".
Pick n Pay is partnering in the launch of `Smart Shopper` with six key
suppliers: Coca-Cola, Kimberley-Clark, Nestle, Tiger, Unilever and Vodacom.
Participation will be extended to other national suppliers after the launch.
Pick n Pay`s strategic implementation partner is international CRM consultancy
5one, part of the LaSer Group. 5one has a proven international track record in
delivering sales and margin improvements through the design and implementation
of customer-centric business and trading strategies.
"Including the Franchise operations, we currently run at over 50 million
transactions per month. Smart Shopper gives our customers a vast number of
opportunities to swipe at the till and receive the benefit of their spending in
stores," said Bronwen Rohland, Pick n Pay`s Marketing Director.
Said Rohland: "This programme is integral to our brand promise to customers -
"Inspired by you". That is the promise that we will consistently develop fresh
ideas and bring them to life. That we will continue to find ways to make our
customers lives better and make their money go further. That`s why Smart Shopper
is, and always will be, clear and transparent, and provide a real customer
benefit, beyond the financial rewards."
Smart Shopper has been designed as a very easy three-step process of signing up,
swiping and switching points to spend or share Rands once cardholders have
collected 1,000 points.
Importantly, and in keeping with Pick n Pay`s sustainability focus, when
switching their points, customers will soon be able to elect to donate to a
charity or environmental cause instead.
By order of the board
Cape Town
17 March 2011
Sponsor:
Investec Bank Limited
Date: 17/03/2011 15:00:01 Supplied by www.sharenet.co.za
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