Woolies revamps unpopular loyalty scheme

Supermarket giant Woolworths' latest loyalty scheme will allow shoppers to earn rewards on every dollar spent.

A Woolworths employee puts price tags on shelves

Woolworths is overhauling its unpopular loyalty program following complaints from customers. (AAP)

Woolworths is overhauling its loyalty program less than a year after the unpopular revamp that introduced orange tickets and prompted complaints from customers.

From August 31, customers will earn rewards on every dollar spent at Woolworths supermarkets, BWS stores, and at Caltex Woolworths outlets.

The move announced on Monday comes with an acknowledgement from the supermarket giant that its system of only rewarding shoppers for buying orange-tagged items has failed.

"We didn't deliver enough orange ticket offers in-store and, while many of our members have been rewarded well, too many have not," Woolworths director of loyalty and customer data Ingrid Maes said.

Shoppers will have a choice to convert their savings to Qantas points, or to bank them for Christmas.

Justine Davies, editor in chief of comparison website Canstar, said the new program is much less confusing than the previous one, and potentially more rewarding than the one scrapped in October 2015.

"Shoppers spending very small amounts per shop will be better off due to the fact that the original scheme did not attract any reward until a minimum $30 spend," she said.

However, she said the downside was that shoppers who spend more than $50 will not earn as many points under the new program.

Ms Davies said the new scheme is similar to rival Coles' Flybuys program, under which customers receive one point per dollar spent.

The move represents another backflip by Woolworths, which dumped Qantas frequent flyer reward points in October 2015 only to reintroduce a reworked Qantas scheme two months later.


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Source: AAP


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