Simon delivers free groceries in a successful loyalty program
A test in the spring of a new loyalty program at online grocer SimonDelivers.com proved so successful that the Golden Valley, MN-based company is rolling it out this summer and promoting it with advertising in local media. Shoppers who spend at least $80 a week for seven weeks receive $80 worth of groceries free in the 8th week. SimonDelivers calls it, appropriately enough, “8th Week Free.”
SimonDelivers tested the program in March and April with 2,500 customers it identified as ordering only every 17 days or longer. 65% became weekly shoppers. “We were very pleased; we would have been happy with 40-50%,” says David Gandrud, director of marketing.
The program’s goal was to get customers into the habit of shopping at SimonDelivers.com. “Our competition is not the chain grocery stores; it’s customers’ behavior,” he says. “Especially as summer approaches and people’s lives get turned all upside down, we wanted to find a way to maintain a consistent shopper base.” The company plans to end the promotion at the end of summer, and possibly use it again next summer. “It’s a good way to stabilize the business in the summer,” he says.
Participating shoppers are given two windows in which to make seven purchases in nine weeks; the first is May 1 to July 2 and the second is July 5 to Sept. 3.
While he won’t reveal details, Gandrud says that more frequent buying has not resulted in lower tickets. The companywide average ticket has not changed during the promotion and frequent shoppers’ tickets are only a fraction below the companywide average ticket.
In addition, the program has attracted new customers.
Gandrud says SimonDelivers promotes the loyalty program on local radio and print media and includes references in its e-mail marketing and at its web site.
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