Thursday 11 July 2024

Aldi Starts Testing Its First Loyalty Scheme

 Aldi Starts Testing Its First Loyalty Scheme

Following long-running rumours that Aldi has been developing a loyalty programme, it has been reported that the discounter has started trialling a digital-based scheme in Belgium.

The platform is accessible through an updated Aldi app, which enables shoppers in 70 stores across the West Flanders and northern Hainaut regions to earn points on purchases by scanning a QR code at the checkout. These points can then be redeemed for free products or discounts.

A spokesperson for Aldi Nord told a local news agency: “We are adapting to changing customer preferences. This digital card complements our existing discounts and promotions, offering loyal customers a way to save even more.”

Reports stated that the test is being co-led and monitored in Germany by Aldi Nord with a view to a possible international launch.
Last month, Aldi said that it had no plans to launch a loyalty app in the UK after scanners identical to those used by Lidl for its rewards scheme were spotted at its checkouts. Aldi stated that the devices had nothing to do with a potential new scheme and were instead for electronic gift cards. However, the report noted that the new scanners were only in some of the discounter’s stores.

Members of the Lidl Plus scheme scan the app at checkouts to claim discounts and personalised rewards. The app has been credited with helping Lidl become the fastest-growing bricks & mortar supermarket in the UK over the last 10 months.

In contrast, Aldi’s sales growth has lagged behind its rivals in recent times after facing tough comparatives with its strong performance last year and increased price competition.

Marc Houppermans, executive partner at Discount Retail Consulting and a former Aldi Netherlands board member, told trade publication The Grocer last month that Aldi was working on an answer to Lidl’s app at an international level but “will do it differently as many Lidl customers complain that they do not get the same discounts if they do not have the app”.

NamNews Implications:
* Truly a Reward for Loyalty and should work well on that basis..
* Unfortunately, given the low % of brands in the Aldi model
* ..the discounter will miss out on the key benefit of branded data
* ..i.e. First Party Data that can form the backbone of optimising Retail Media Revenue
* Thereby placing Aldi at a significant disadvantage to the Mults…
* In other words, Aldi will need to radically change the % of Branded vs Aldi Surrogate brand
* …(say 50/50, minimum) to restore parity with the mults..

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