How many rewards cards do you have in your wallet? How about rewards/loyalty apps on your phone? Below are just a few of my growing mound of cards I keep on a keyring in my purse.
Notice the words on the cards – Savings, Club, Advantage, Perks, Rewards, VIP – all making the holder of the card feel like a part of a special group that is entitled to more than your average shopper. Loyalty is what retailers strive for amongst their customers. If they can get shoppers back in the store with incentives such as cash earned or special discounts, then their goal is being met. According to our Shopper Insights Survey, 50% of shoppers have 2 or more retailer apps on their phones. I would be willing to bet most of those are for rewards programs (who doesn’t want free coffee from Starbucks or Dunkin Donuts?)
Now that Whole Foods has been acquired by Amazon, the grocer is utilizing the Amazon Prime membership as a type of loyalty card for Whole Foods – giving Prime members special discounts on groceries in-store. In a review of Market Track’s promotional data, we found that Amazon and Whole Foods are currently advertising this special discount on turkeys. Prime members can buy whole turkeys in-store at Whole Foods for $1.99/lb (regular $2.49/lb) and $2.99/lb (regular $3.49/lb) for organic.
Amazon.com webpage banner; Source: Market Track promotional data
As said by Amazon, “In this season of thanks, we’d like to thank you for being a Prime member. Please enjoy extra savings on high-quality whole turkeys from Whole Foods Market, part of the Amazon family. Now through November 26th, use this coupon to save up to an additional 20% off whole turkeys – a delicious centerpiece for your Thanksgiving meal. These turkeys are animal welfare rated, sourced from farms Whole Foods Market knows, and raised with no antibiotics, ever.”
So even though members are PAYING for their Amazon Prime membership, they still feel like they are getting a great bargain with these in-store grocery discounts. It’s a smart move on Amazon’s part, and a good way to get people into their subsidiary, Whole Foods. You can buy pretty much everything at the online retailer, and when you find something you can’t, such as a turkey, Amazon still makes the money.