Carrefour is set to make significant changes to its customer loyalty program, which has traditionally been seen as a cornerstone of its relationship with millions of consumers. Starting January 2025, the retailer will replace its existing loyalty structure linked to the Pass card, stirring debate among customers and unions alike.
The current Pass card program, which has been operational since 2001, allowed customers to earn rewards through various loyalty benefits. For every €60 spent, customers received €3 back, creating an appealing saving mechanism for many shoppers. The move to abolish this benefit has raised eyebrows, particularly from the CFDT union, which highlights potential dissatisfaction among customers accustomed to this clear and rewarding system.
According to reports, on January 13, 2025, the existing loyalty program will be replaced with what Carrefour describes as "more generous" offers. Among these new benefits, customers can expect 15% discounts on organic products, fruits, vegetables, and Carrefour’s private label brands. The CFDT has expressed concern over losing the €3 cashback, viewing it as pivotal to customer attraction and engagement, with fears it might drive consumers toward competitors offering simpler loyalty benefits.
Unions are also worried about the fallout for staff working on the ground, who may find themselves grappling with customer frustration as they adjust to the new loyalty model. The CFDT noted, "This change could destabilize consumers who are used to the old benefits and may lead them to explore options elsewhere. This is particularly important for our teams who already face challenges every day." The union is advocating for clear communication from Carrefour to mitigate these potential issues and clarify the value of the new program.
On the flip side, Carrefour is positioning this change within its broader strategy to modernize and personalize the shopping experience. The introduction of the new “Club Carrefour” branding aims to strengthen ties between the retailer and its customers, aligning with trends to tailor services to changing consumer demands. The leadership at Carrefour sees this as both a necessity and opportunity to differentiate itself within the fiercely competitive retail market.
Despite the concerns raised, Carrefour believes the new loyalty framework will provide tangible value for customers, offering targeted savings and enhancing the shopping experience. A Carrefour spokesperson noted, "The changes we are implementing are aimed at aligning with our customers' needs, focusing on affordability and quality products they regularly purchase." To facilitate this transition, Carrefour plans to launch effective communication strategies to explain the new program’s benefits, aiming to minimize customer grievances.
The proposed shift highlights the significance of loyalty programs as more than just marketing tools; they play pivotal roles in building customer relationships. With 87% of French consumers engaged with at least one loyalty program, as indicated by recent studies from Ifop, the stakes are high for Carrefour. Maintaining and enhancing customer loyalty is integral, especially during these economically tough times.
The transformation of the Pass card program is part of Carrefour's broader strategy to improve its competitive edge. Already recognized for its successful campaigns and recent accolades—having won the "Best Retail Chain of the Year 2025" and "Best E-commerce Merchant of the Year 2025"—the company is eager to retain its position as a leader among retail giants.
Moving forward, Carrefour must navigate the challenges posed by this shift wisely. The effective implementation of the "Club Carrefour" loyalty program will hinge upon how well it can deliver perceived greater value than the previous system. If successful, Carrefour could not only retain its loyal customer base but potentially attract new shoppers seeking more relevant and convenient savings.
Meanwhile, customers are encouraged to adapt to these changes and keep appraised of the new offers and benefits as January 2025 approaches. With all accumulated rewards from the Pass card remaining intact, existing customers will need to monitor how these transformations will execute at their local Carrefour stores.
With such important modifications pending, consumer responses will be pivotal to determining the overall success of Carrefour's new loyalty initiatives. Will this bold gamble payoff, or could it backfire? Only time will tell as we move closer to 2025 and beyond.
