Reviewing the most popular grocery loyalty programs in Europe: Carrefour MyClub

Let’s delve into the most popular grocery retail loyalty programs in Europe – and study the key findings that have made these programs successful and an example for retail loyalty leaders across the globe.

Carrefour’s brand

Carrefour is a French multinational retail corporation that specializes in grocery and general merchandise. It is one of the largest retail chains in the world, with over 12,000 stores in more than 30 countries.

Carrefour was founded in 1957 and has its headquarters in Boulogne-Billancourt, France.

In addition to its brick-and-mortar stores, the company also operates an online shopping platform.

The Carrefour MyClub Loyalty Program

Carrefour, one of the largest grocery retailers in Europe, operates since Feb 2019 a loyalty program called “MyClub” (formerly known as Carrefour Bonus Card) in many countries where it operates, including France, Spain, Italy, Belgium, and Poland.

The program aims to reward customer loyalty and encourage repeat business through a range of benefits and incentives.

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How does Carrefour’s MyClub loyalty program work?

Customers can sign up for the “My Club” program at any Carrefour store or through the company’s website.

Once registered, members earn points on their purchases, with one point awarded for every euro spent. Members can also earn bonus points on certain products, as well as for purchasing Carrefour-branded products.

Becoming a member of Carrefour My Club is completely free.

Anyone over the age of 18 can become a member online, in-store or through the app.

The membership card is personal and non-transferable and is always associated with the holder’s ID. Members get cashback and discount coupons.

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The strengths of Carrefour’s MyClub

  • Simple and free – The “MyClub” program is easy to understand and free to join, making it accessible to a wide range of customers.
  • Extra cash back or double point days – these work well for bringing customers to the store on the days that usually have lower traffic. Check, if your sales are seasonal, especially if there are certais days of the week that have less sales, and launch extra points days then.
  • Branded credit card – This is a great example of a loyalty program for retail chains that features a branded credit card and special benefits for the branded credit card holders, apart from the regular program members.
  • Online and in-store redemption – Members can redeem their points for discounts either in-store or online, providing flexibility and convenience.
  • Personalized Offers – Members receive personalized promotions and discounts based on their shopping habits, which helps to keep them engaged with the program and the brand.
  • Customer insights – The program also allows Carrefour to collect valuable data on customer behavior and preferences, which can be used to improve product offerings and marketing campaigns.

The weakness of Carrefour’s MyClub

  • Limited Benefits – Compared to other loyalty programs, the benefits offered by the “MyClub” program are relatively modest, with discounts on future purchases being the main incentive.

Results of Carrefour’s MyClub

In terms of results, Carrefour has reported that the MyClub program has been highly successful in increasing customer loyalty and sales.

The company has stated that customers who participate in the MyClub program tend to spend more and visit Carrefour stores more frequently than non-members.

Additionally, Carrefour has used data collected through the program to create targeted marketing campaigns that have helped to increase sales and profitability.

Overall, the MyClub loyalty program has been a key factor in the success of the Carrefour brand and has helped to differentia

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Conclusion

When it comes to loyalty programs in the grocery industry, marketing experts and strategists unanimously agree that grocers have unique challenges for several reasons:

  1. Low margins: Grocery stores typically operate with low profit margins, so loyalty program rewards and discounts can quickly eat into their profits. As a result, it can be challenging to design a loyalty program that provides enough value to customers while still being profitable for the grocery store.
  2. High competition: The grocery industry is highly competitive, with numerous stores vying for customers’ business. This means that a grocery loyalty program needs to stand out and provide significant benefits to customers in order to be successful.
  3. Large customer base: Grocery stores typically have a large customer base, which can make it challenging to manage and personalize communications and rewards for each individual customer.
  4. Complex product offerings: Grocery stores offer a wide variety of products, which can make it difficult to create a loyalty program that is relevant and appealing to all customers. For example, a loyalty program that offers rewards for buying meat may not be relevant to vegetarian customers.
  5. Limited differentiation: Grocery products can often be perceived as commoditized, meaning that customers may not be loyal to a specific grocery store. As a result, it can be challenging to create a loyalty program that differentiates the store from its competitors and encourages customers to shop there more frequently.

Overall, the challenges associated with launching and managing a grocery loyalty program can be significant, but with careful planning and execution, a successful loyalty program will help grocery stores retain customers and increase sales.

If you’re a retailer and you’d like to discuss the launch or re-design of your customer loyalty program, please get in touch with our team – we’ll be happy to show you examples or talk through your brand’s unique challenges.

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