Are you supermarket loyal?

 

Supermarkets falling profits

There has been much discussion by retail analysts as to the reasons for profits of the supermarkets falling. Is it because the supermarkets have diversified too much and have forgotten what made them successful? Which companies have the best sited stores? It is probably a combination of many things. The public using more convenience stores and dropping the weekly shop and the irony of the likes of Tesco and Sainsburys developing these smaller stores in the first place?  The price wars between the big four and Lidl/Aldi. Are people doing a weekly shop for non-perishables and buying what they want to eat that evening on the way home from work?  Who understands the price matching thing anyway? Is it a Tesco finest pie versus a Sainsbury’s taste the difference pie? Is it Sainsbury’s taste the difference tomato versus Asda’s tomato? Then you have the all the confusing prices that annoy everyone. Which? has a petition you can sign regarding that one!

Loyalty cards
From 11th April Sainsbury’s reduce their loyalty points on their Nectar card. Sainsbury’s nectar turns sour. This move from Sainsburys may save them money in the short term but in the long term customers are less loyal than they ever were and we often know that companies frequently reward new customers and not existing customers and this is a very good example of that. All the loyalty cards have their confusions don’t they? X for purchases in stores, y on the credit card, z in other stores and they should be simplified!

At Christmas Sainsbury’s provided a “double up points” scheme that was limited to £20 per department and many staff didn’t even know what was in and what was out of the offer. (I know this because I experienced it and I vaguely remember sending them my opinions on their Christmas offer. £20 limit on toys for a family of 4 isn’t very helpful either. This sort of thing annoys customers greatly and for Sainsbury’s to increase their profits they need to be mindful of making thing more complicated for customers if they want to develop loyalty. In contrast, Tesco has the most developed reward scheme with the most frequent doubling up of value and range of items to spend points on. It also seems to have improved its voucher scheme having simplified the doubling up process so that you can spend across departments with no limit. They had to do something after I took Tesco to court over their clubcard fiasco perhaps?!

Morrisons has only just started a loyalty card. Late to the table with that one. I discussed their woes with Adam Parsons on wake Up To Money on Radio 5

Simple answer for all supermarkets?
Ask the customer what they want and give it to them. Develop a decent loyalty scheme that rewards customers, don’t  take away from exiting loyalty schemes, improve them. Surely that is obvious? Perhaps not to some CEOs. Customers have been saying for years just reduce the prices, stop all the annoying vouchers that customers have to fill their purses/wallets with, stop all the bogoffs and offers just reduce the prices, permanently. Despite the fact that this is a well-known hate of customers the supermarkets still continue the practice. Supermarkets need to set up a thorough programme of consultation running various meaningful projects not just ask for feedback from just existing customers. Perhaps it about time that supermarkets took on an “Every listen helps” slogan.

Are you loyal to a supermarket? Why? What should they do to improve your loyalty or get it in the first place? Is it just price or do they need to do more? What do you think of the price matching, deals, etc etc?!

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5 Responses to Are you supermarket loyal?

  1. clare jenkins says:

    I would buy everything in Lid if I could but there are some items they just don’t stock and aren’t ever going to. So I try and go to small local e.g. butcher but haven’t always got the time to go and park up in town for just one item. That leaves Morrison or Tesco. Prefer Morrison but will use Tesco if they have sent me vouchers for things I need. Not too impressed with money off big shop eg £60 or £70 because entry not to spend so much. Do use Tesco credit card to get the extra points and I clear it every month. Also use the car fuel discount. Like the Morrison £5.00vouchers now I have realised they last for ages and you can ‘save’ them on line.

    • The Complaining Cow says:

      I shall feedback to any CEO that listens. So far it appears that that maybe only Tesco ( very recently!!) but time will tell!

  2. david owens says:

    hi their my name is dave owens and `iwant to complAin thAt iwent in to my yahoo account and i had amessage con gratulations you have won atescos award voucher for 500 pounds to spent in the tescos shops and i told them that idid suffer rom adisablty now sugar diabetics and high blood pressure and my legs are swollen up aned cant go out off the house at all with all access fulid now idid ask them to post this gift card out to me now about 2weeks ago and it as not avvaird as ido need the money now with haveing no money as iam only payed inj two weeks` time fortnightly 186 pounds `if you can sort this iout now friom dave owens and sent the gift card out in the post bnow fromk dave owens

    • The Complaining Cow says:

      Sorry – that is really difficult to follow. I think you are wanting to complain to Tesco? Please contact Tesco. Please see the bottom of this post here for contact details for Tesco. I have removed your address from your post as this a public forum and you do not want to be sharing your address with everyone.

  3. Pingback: Tesco reduce Clubcard loyalty offer?

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