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Store: North Albany IGA (Myers Group)
Location: North Albany, Oregon
Submitted by: Lauren Myers
At North Albany IGA (and three of our other stores), we run a points-based loyalty program, partnering with a company called AppCard. For every $1 a customer spends, they earn 10 points. Customers can then redeem discounted items once they’ve accumulated enough points. For example, for 1,500 points, a customer can earn a free loaf of IGA white or wheat bread. They can use 2,500 points toward a quart of Tillamook ice cream, paying just $2.99 extra. We run promotions on around 50 products on a quarterly basis, and feature three to five deals a week on additional products. About a 25 percent of the promotions are for free items, the rest are discounted, and the majority are IGA-brand or other private label products.
In addition to determining which products to run promotions on, the loyalty program coordinators along with our AppCard consultants can access data on purchasing trends, promotion performance, the average sale amount per shopping trip, you name it. We use that information to run campaigns targeting specific groups of shoppers. For example, we ran a “declining top shopper promo” where we sent an email to 100 shoppers who fell out of the top tier in the last period. As an incentive, we offered those shoppers a coupon for $5 off a $50 purchase. That coupon would also print out on their receipt at checkout as another reminder.
Our most successful campaign to date was to encourage repeat visits. We let all our loyalty card members know that if they spent $30 or more each week for a month (4 weeks), they would receive a $5 off coupon. That campaign had a great response. In the end, 60 percent of customers who qualified used the coupon, spending an average of $55 on that trip.
Customized program. The main thing that differentiates our program is that it’s tailored to each shopper. They have access to lots of great deals and coupons, customized to their shopping preferences. The great thing about using a loyalty program like AppCard is you can deliver the deals that shoppers are looking for and will respond to.
Increased sales. The average basket size is almost $10 more for loyalty members vs. non-loyalty members and approximately 63 percent of sales are from loyalty member transactions.