Reviewing the most popular grocery loyalty programs in Europe: Migros Cumulus
Migros is a Swiss retail company that was founded in 1925.
It’s the largest supermarket chain in Switzerland, with over 700 stores and approximately 100,000 employees.
Migros is a cooperative that is owned by its customers, with profits being reinvested in the company or distributed back to customers in the form of dividends.
In 2021, the Migros Group generated consolidated sales of CHF 28’932 billion (adjusted, +2.3% year-on-year) and remains the undisputed market leader in Swiss retail. Group profit amounted to CHF 668 million.
The Migros Cumulus Loyalty Program
Migros operates a loyalty program called “Cumulus” that was launched in 1999.
The program aims to reward customer loyalty and encourage repeat business through a range of benefits and incentives.
How does Migros Cumulus work?
Customers can sign up for the “Cumulus” program for free at any Migros store or online.
Once registered, members earn points on their purchases, with one point awarded for every Swiss franc spent. Members can also earn bonus points on certain products, as well as for purchasing Migros-branded products.
Members can redeem their points for discounts on future purchases or for vouchers that can be used in other Migros businesses, such as travel or fitness centers.
Additionally, members can take advantage of special promotions and discounts that are only available to program members.
The strengths of Migros Cumulus
- Simple and Free – The Cumulus program is easy to understand and free to join, making it accessible to a wide range of customers.
- Sustainability Focus – Migros is known for its strong commitment to sustainability, and the Cumulus program reflects this by offering members discounts on environmentally friendly products and encouraging sustainable behavior. With ambitious climate targets, products with a transparent sustainability rating, and new organic food refill points throughout Switzerland: Migros made excellent progress in all strategic areas in 2021
- High Levels of Customer Engagement – The program has a large membership base and is highly popular among Swiss consumers, with approximately 75% of households in Switzerland having a Cumulus card.
- 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. Learn how enterprise retailers excel with their coupon marketing strategy: tips, trends and statistics for enterprise retailers.
- Broad Range of Benefits – Members can earn points on a wide range of products and can redeem their points for discounts on future purchases or for vouchers that can be used in other Migros businesses.
The weaknesses of Migros Cumulus
- Limited Online Redemption – While members can earn points through online purchases, the program currently only allows for point redemption in-store.
The results of Migros Cumulus
In terms of results, Migros has reported that the Cumulus program has been highly successful in increasing customer loyalty and sales. The company has stated that customers who participate in the program tend to spend more and visit Migros stores more frequently than non-members. Additionally, Migros has used data collected through the program to create targeted marketing campaigns that have helped to increase sales and profitability.
Overall, the Cumulus loyalty program has been a key factor in the success of the Migros brand and has helped to differentiate the company from its competitors in the highly competitive Swiss grocery market.
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.
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