Two US retailers have recently tested some new loyalty reward programs: Target and Whole Food Markets.
Both of the companies have points based loyalty programs. The particularity of points based is that it bases its value on points rather than cash. The good thing about such programs is that it allows to go beyond the cashback concepts, and propose some rewards that may be for example for Whole Food Markets some cooking classes. The bad thing is that it is harder for customers to see the generosity rate of the program, and hence the benefits of it.
Nevertheless, as both retailers are trying to add added value beyond the discount concept, it may be a good strategy.
Both obviously set their strategy online, and using mobile devices.
Now, it is difficult for fast moving goods retailers to have a strong customer experience via a loyalty reward programs. Indeed, the loyalty programs allow to have massive customer data, but it is difficult to have a clear added value to the relationship when you have discount products bought every week.
We will see what kind of results both retailers will have from these initiatives.