Somerfield to broaden customer loyalty scheme offer

LONDON - Somerfield, the UK's seventh-biggest grocery chain, is extending its customer loyalty scheme to more than 100 stores.

The activity comes as the company begins trials of a mobile phone-based service that targets shoppers in-store with money-off coupons.

Somerfield, part of the group that owns the Kwik-Save chain, launched its Saver Card in 33 stores last year. It believes the scheme has proved its worth, and so is broadening its rollout.

The expansion follows Somerfield's announcement in January of interim group profits of 拢7.9m in the 28 weeks to November 9, with like-for-like sales growth up 0.4%.

Saver Card is unique among supermarket loyalty schemes in letting consumers use a barcoded key-fob instead of a traditional card. It is based on a cash-saving, rather than points-accruing, mechanic, and targets members with regular offers.

The extension of the initiative comes as the supermarket participates in the pilot of a service that will enhance its ability to target shoppers in-store. The chain has signed up to take advantage of a partnership between mobile marketing company 12snap and iCoupon, which designs loyalty tools for new routes to market.

Somerfield plans to begin the trial in a major city supermarket, but has yet to decide on the exact location. The trial is scheduled for early-summer and will offer customers the chance to receive discount coupons on a range of products direct to their mobile.

The technology features a unique barcode embedded in each text message, which lets Somerfield and participating brands monitor the effectiveness of every campaign.

Industry observers believe such technology is likely to feature more prominently in marketing strategies of retailers exploring ways of making communications relevant to individual shoppers.

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