How does Pick n Pay's smart shopping work?
May 1st 2011, 12:00
Once a customer has collected 1,000 smart points (R1 for every point), points can be switched for cash back on the card to spend in store. Customers will also receive regular special offers which are tailored to meet their needs. It’s a simple as that!
Customers can also earn bonus points as an additional benefit on selected products or promotions. In addition, discretionary points will be allocated as rewards or special occasion bonuses and selected products earn double, triple or bonus points throughout the year.
There are a few things required to get started: a South African ID number or passport number (for non-SA citizens) for when customers first sign up and whenever they switch points, change details or manage their cards. A cell number and/or email address is also needed to give customers the full reward owed to them. No details will ever be passed to a third party for any reason whatsoever.
Terms and conditions are simple and made clear on application forms and online. The most important of these is without a card, points can’t be earned, so the card must be swiped for every shop to earn the points. Another condition is with respect to returns: if goods are returned, the points are re-claimed.
The mechanics of smart shopper
• There are no sign-up fees, no service charges, no admin costs and no credit checks. This is not a credit card.
• You never pay in; you simply stand to benefit from points and rewards tailored to you.
• For every rand spent Pick n Pay gives you one smart point.
• Smart points will be credited to your smart shopper account within 5 days of purchase.
• Once you’ve collected 1000 smart points, you can switch them for cash back on your card to spend in store.
• You will also receive unique special offers, including regular smart shopping sprees.
• You will need your South African ID number or Passport number (for non-SA citizens), whenever you switch your points, change your details or manage your card to safeguard your rewards.
• Cards must be swiped when you shop or you won’t get any points.
• The only till transactions that don’t earn smart points are third party payments such as household service bills, traffic fines, tobacco products, PnP gift cards, Lotto, money transfers, financial services, fuel and prescription drugs.
• You receive points for what you spend, so Pick n Pay will reclaim points for returns and refunds.
• If you don’t use your account for 24 months, we’ll close it for you.
• Other terms and conditions apply and can be found in store or on pnp.co.za.
• Pick n Pay will need your cell phone number and/or email address to give you the full rewards of smart shopper. Pick n Pay will NEVER pass on your contact details or use them for spam.
SOME KEY QUESTIONS AND ANSWERS
1. What are the goals of the programme?
There are five main benefits of well-run loyalty programmes: significantly increased value to the customer through their engagement; benefits of employing customer-centric retailing strategies across pricing, promotions and ranging; improved trade through very targeting marketing and responding directly to customers’ needs; an increase in asset value from taking more customer-centric informed business decisions regarding site acquisition, store re-fits, format planning, and roll-out of new services and ranges; and successful joint ventures with suppliers.
2. Are any services being outsourced?
Yes, given the complexity, speed, efficiency and degree of specialisation required. The plan is to build the internal capability in Pick n Pay over time. In addition, we have outsourced the shopper insights capability to 5one. 5one is an international expert in CRM & Loyalty, specialising in retail and consumer-goods industries.
3. Granularity of data is key to success. Does PnP have the technology in place to be able to gather and use data efficiently?
Yes, we do, and over time, as we gather sufficient data, we will be able to really deliver this area of benefit to the fullest. In the immediate term, all shopper insights will be derived through our partnership with 5one.
4. How does earning one point per Rand compare to other loyalty programmes in South Africa?
One point per rand spent is comparable to other local loyalty programme such as Clicks, Body Shop and Exclusive Books. In addition to these base points, customers will also earn bonus points through promotional offers and quarterly shopping sprees.
5. Are there levels of membership?
No, all our customers are treated the same.
6. Isn’t this a scheme to make customers pay for their own loyalty?
Not at all. It is entirely by funded PnP and its suppliers and there is absolutely no cost to consumers.
7. What is to prevent a competitor from offering to accept PnP points in their stores?
Technologically this would not be possible as the card bin number for switching purposes is registered solely to PnP.
8. At launch are there any supplier partners?
Yes. Our key launch suppliers are Nestle, Coca Cola, Tiger, Unilever, Vodacom, Kimberley-Clark. Additional suppliers will be invited to participate post-launch.
9. Is Boxer included?
Not at this stage. Only corporate and franchise stores in SA.
10. Are all PnP stores included?
All PnP Hypermarkets, Supermarkets, Family Stores, Clothing, Express, Liquor and Pharmacy stores are included. Online shopping will follow in a couple of months.
11. What security measures are in place to protect customer information?
PnP will ensure strict conformance with PCI standards and of course the Consumer Protection Act.
12. Will PnP be able to manage its data such that it specifically targets customers who show specific trends and preferences in their monthly shop?
Yes, and that is obviously one of the key strengths of the programme. The approach will initially be cautious and generic until such time as we have sufficient data to better segment customers. This segmentation approach commences as soon as we begin to collate sufficient shopping data.
13. Will this apply to the current Discovery deal on food?
Yes, the linkage to Discovery’s Healthy Living club will apply from launch. That means they’ll get the dual benefits of Discovery plus PnP smart shopper by swiping both cards.
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