Woolworth has announced that it will be dropping its ‘Woolworths Dollars’ after a dreadful run that saw the program drop like a lead balloon. The supermarket will now use a points system underpinned by a partnership with Qantas Frequent Flyer. In response to customer feedback, the supermarket will overhaul the program as soon as possible, meaning it goes live on the 31st August.
At the end of this month you will now collect ‘Woolworth Points’ with one point earned for every dollar spent at the supermarket, plus affiliated Caltex service stations and BWS bottle shops. To give you an overview, $2,000 dollars spent or 2,000 points earned will equate to either $10 instant discount at checkout or 870 Qantas Frequent Flyer points.
The issue came when Woolworths decided to reward customers with its own form of ‘Dollars’ and applied a heavier focus onto being able to earn instant money off of your total bill. However, the company realised that it didn’t deliver enough orange ticket products in-store for people to save enough money and many consumers felt disgruntled. Now the overhauled rewards program means every customer earns points by shopping at either the supermarket, Caltex or BWS.
Woolworths will also offer customers the opportunity to earn double points on essential household categories, such as launch deals on fresh fruit and vegetables, fresh meat, at the deli and fresh fish counter. There will also be a selection of personalised offers too on items that individuals buy regularly.
At the end of August, customers will be able to convert their existing savings to Qantas points or bank their savings to be spent at Christmas for example. Also, I don’t believe this is the end of improvements to the company’s loyalty program, they still have a long way to go to win back the many customers they angered in the process of all the changes.
This embarrassing change of the rewards program comes only 9 months after Woolworths ditched its previous Frequent Flyer partnership to many customers dismay. This was supported by a survey conducted by the market research firm Canstar Blue who asked 2,300 Coles and Woolworths customers if they thought their supermarkets rewards programs were good value for money. The results revealed that only 41% of Woolworth’s customers thought their program was good value for money whilst 65% of Cole’s customers thought the same.
So, with the new rewards program from Woolies about to launch, which program will give you more for your money? With no minimum spend from Woolworths anymore to earn points, will it now be better value for money compared to Coles?
|Earning points||$1 spent at Woolworths, Caltex or BWS = 1 point (excluding Tasmania and Star Mart)||$1 spent at Coles, Target and Flybuys = 1 point. $2 spent at Coles Express = 1 point.|
|Cash rewards (spend in stores only)||2,000 points = $10||2,000 points = $10|
|Travel features||Swap $10 cash reward for 870 Qantas points||$1 spent = 1 Guest Tier mile with Etihad Airways (maximum 2,500 miles per month) 10,000 Flybuys points may be swapped for 4,000 Etihad points|
Woolworth’s Rewards program is straightforward and very easy to understand when looking at the table. The Coles Flybuys scheme offers more bonus features in comparison and there are certainly more partners stores to earn points from from. However, to decide on which is better boils down to personal preference and there is certainly no harm in being signed up to both.
Which program do you prefer? Let us know in the comments section below.