Pick n Pay is expanding its rewards program with FNB to attract customers and improve performance after losing market share. The new initiative allows all FNB customers to earn up to 30% back on spending, aimed at reversing declining sales and enhancing customer loyalty. Positive early results have been noted since the launch, notably an increase in spending and online shopping.
In a strategic move, South Africa’s Pick n Pay is expanding its rewards program in collaboration with First National Bank (FNB) to attract bank customers and regain lost shoppers. The grocery retailer has lost market share to competitors like Shoprite over the last ten years and is now aiming to improve its performance following the appointment of Chief Executive Sean Summers in late 2023.
Following a decline in sales, Pick n Pay has implemented various initiatives since mid-2022, including revamping stores, closing unprofitable locations, and establishing new customer loyalty strategies. Chief Executive Sean Summers remarked, “All of the things that we are doing … it’s what’s getting customers back into our stores, and we can already see it’s starting to turn,” indicating positive early results from these changes.
Initially launched in November exclusively for high-income clients, the loyalty program will now be accessible to all FNB customers, effective April 1. These customers can earn up to 30% back on their purchases in the form of eBucks loyalty points, which can be redeemed for cash.
FNB has noted a significant increase in shopping activity at Pick n Pay, with those enrolled in the program boosting their spending since its inception. Pieter Woodhatch, CEO of FNB’s eBucks division, noted that customers who previously spent less than 20% of their grocery budget at Pick n Pay now account for about 90% of the recent spending surge. The loyalty initiative has also led to a remarkable 98% increase in online shopping among eligible customers since November.
Pick n Pay’s strategic expansion of its loyalty program in partnership with FNB demonstrates its commitment to regaining a competitive edge in the grocery sector. Through inclusive offerings and targeted customer engagement, the retailer aims to reverse years of market share loss and cultivate a loyal customer base. This initiative highlights the importance of adapting customer loyalty strategies to drive business performance and foster growth in a challenging market.
Original Source: www.marketscreener.com
