myWaitrose is point-less: a new generation of loyalty schemes that redefine the genre

Our interest in the evolution of loyalty schemes was piqued by a recent article on Marketing Week online heralding the new guard of consumer driven programmes. 

To quickly condense that article into a few soundbites for the FB status generation:

• a Colloquy study shows only 31% of people think loyalty schemes are relevant
• 3 new models have emerged putting consumers first through data-mining and harvesting
• Model 1: data-matching e.g. NPower who match offers to known leisure and lifestyle interests
• Model 2: paid-for privileges e.g. Ocado Savings Pass to save money on a basket of products
• Model 3: Social Network loyalty e.g. nearly every brand on Facebook getting you to like them in return for something (in)tangible

Another new innovation in loyalty schemes landed on my very own doormat this week, myWaitrose. Hence this article.

On the face of it, the concept is very refreshing.

1. You can't earn points but you will be sent random offers of relevance (see below)
2. If you remember to show your card at the till, Waitrose will 'learn' what you like and let you know when your favourites are on offer
3. One shopper per shop per month will win back their whole month's shopping
4. One customer per month will win a year's worth of Waitrose groceries
5. Check in online regularly for exclusive competitions, discounts, experiences etc

So, quite an ambitious package and, of course, we have our own opinion but Waitrose (bravely) have a Tell us What you Think forum where real life punters share their thoughts. Here's a summary of the main complaints:

• Various: why do I have to enter myWaitrose card number again for each competition entry?
• Cookie: "no real incentive to use the card every time... I'm guessing the novelty will wear off"
• Bluemental: "your cashiers didn't even know of it's existence"
• Mrs Lincoln: "not impressed that the vouchers for special offers can't be used online"
  (Editor - it's hard to buy petrol online!)
• Various: I can't use myWaitrose card with QuickScan self-checkout. Waitrose clearly haven't thought this through 

Conclusions

So are all these innovations going to change the face of loyalty? Yes, up to a point. On the whole myWaitrose appears to have been well received apart from the odd compliance or technical issue which often happen in the early days. They might be late to the supermarket loyalty party but with their enigmatically different approach they could be partying late into the night while other schemes have long gone to bed.

Overall data mining is a logical advancement in making the most of your customer relationship. The trick here is clearly how well the data is interpreted and actioned. The potential picture could have so many permutations that making the offers relevant on a macro level would be impossible or mega expensive. Clearly the Waitrose route of offering universally appealing Christmas wrapping paper, sweets and petrol can't go far wrong.

Finally, we are astounded that companies confuse Facebook likes with any real sense of loyalty. It becomes a rather meaningless playground popularity contest. If you're 'bribing' them with an offer in the first place, then what sort of people are you being liked by? Bargain hunters or loyal fans? How many ever come back and interact once they've liked you for a freebie?
Hello?... Marketeers?