Reviewing the most popular grocery loyalty programs in Europe: Stammis at ICA Gruppen
About ICA Gruppen
ICA is a Swedish grocery retailer with over 1,500 stores across Sweden, Norway, and the Baltic states. The company was founded in 1938 and has its headquarters in Solna, Sweden. ICA operates both physical stores and an online shopping platform, providing a range of products, including food, household goods, and electronics.
The Stammis loyalty program at ICA Loyalty Program
Stammis is a Swedish term for a regular customer and it’s also the name of ICA’s loyalty scheme.
The loyalty program aims to increase customer loyalty, encourage repeat business, and provide a more personalized shopping experience. As a member, you get Stammis prices, personalised offers and the opportunity to earn bonuses.
How does Stammis loyalty program work?
Customers can sign up for the “ICA Bonus” program for free at any ICA store or online.
Spend one krona to collect one Stammis point.
Through the program customers are awarded points on all purchases made at ICA stores, Apotek Hjärtat, ICA Bank and ICA Insurance. Members can also earn bonus points on selected products, as well as for purchasing ICA-branded products.
Points are collected during the month and then added up the points at the end of each month. If a member’s points reach a bonus level, they get converted into a bonus. The points are valid for one month and then the count for the next month starts at zero.
An example of Stammis points and bonus levels for Stammis members at ICA:
2,000 – 3,999 Stammis points give a SEK 25 bonus
4,000 – 5,999 Stammis points give a SEK 50 bonus
6,000 – 7,999 Stammis points give a SEK 75 bonus
8,000 or more Stammis points give a SEK 150 bonus
Points can be redeemed for discounts on future purchases or for a range of other rewards, such as free products or experiences. Members can also take advantage of special promotions and discounts that are exclusive to program members.
The strengths of Stammis loyalty program at ICA
- Customer insights – Several of the digitalisation projects currently under way within ICA Sweden, Rimi Baltic, Apotek Hjärtat and ICA Bank are aimed at meeting customer needs in an even better and more effective way – in both physical and digital channels.
- Free and easy to join – The “ICA Bonus” program is simple to understand and free to join, making it accessible to a wide range of customers.
- Linking any bank card to your Stammis account – This way members collect Stammis points on everything they buy. Should customers also choose to get one of ICA’s payment cards, they’ll collect an extra 20 points every time you use their card.
The weaknesses of Stammis at ICA
- Limited differentiation – A lack of substantial differences between these loyalty schemes means that shoppers have little incentive to change their shopping behaviour. It also limits the acquisition of new members and results in a phenomenon I call “polygamic loyalty”, meaning that most shoppers possess at least 2 cards (i.e. ICA and COOP, or COOP and Lidl etc.) and don’t buy based on rewards but on the famous 4 P’s (Place, Product, Price, Promotion).
Results of ICA Gruppen
ICA has reported that the “ICA Bonus” program has been successful in increasing customer loyalty and sales. The company has stated that program members tend to spend more and visit ICA stores more frequently than non-members. Additionally, ICA has used data collected through the program to create targeted marketing campaigns that have helped to increase sales and profitability.
Overall, the “ICA Bonus” loyalty program has been a key factor in the success of the ICA brand and has helped to differentiate the company from its competitors in the highly competitive Scandinavian 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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