Starting from January 2025, customers of German supermarket chains Rewe and Edeka will experience significant changes in loyalty reward programs, as Rewe and Penny announce the termination of their partnership with Payback.
By December 29, 2024, customers will no longer be able to collect or redeem Payback points at Rewe and Penny. This decision stems from Rewe's initiative to introduce its own customer loyalty program, aiming to redefine customer engagement and retention.
Alongside this development, Edeka, along with Netto and Marktkauf, will be joining the Payback program, which previously included Deutschecard as its primary cooperation partner. This partnership switch indicates Edeka's determination to expand its customer engagement strategies through the Payback tracking system.
The latest changes will allow customers, especially those using Sparkassen accounts, to automatically earn Payback points when shopping. Sparkassen customers can activate the Payback feature on their Giro cards, offering the convenience of collecting points without needing additional loyalty cards.
Ute Schyns from WDR's economic team comments on the impact of such programs, stating, "Verbraucherschützer halten die Ersparnis aber für überschaubar." This reflects the skepticism around how much real savings consumers achieve through points programs.
With regards to previously collected points, they will not vanish when the program partnership ends. For example, the points previously accumulated using the Deutschlandcard at Edeka will remain valid until the end of February 2025. Post this date, they can only be redeemed across other partners of Deutschlandcard.
Payback points will also retain validity even after retailers cease participation, typically for three years, allowing customers sufficient time to transact with remaining partners.
Nonetheless, consumer advocates caution about the data shared through these loyalty rewards. Christine Steffen from Verbraucherzentrale NRW expressed concerns, sharing, "Den eigentlichen Nutzen haben die Unternehmen, die für die Daten, die sie von den Nutzern erhalten, bares Geld bekommen." This statement warns consumers about the potential pitfalls of loyalty programs, which can encourage spending patterns driven by incentives rather than need.
Such points programs can create pressure to purchase more or unnecessary items, often leading to expenses surpassing the actual savings garnered from the points system. The criticism shines light on how consumer data is utilized for targeted advertisements, manipulating purchasing behavior.
The upcoming partnership shifts mark a pivotal moment for loyalty program strategies within Germany’s retail sector as competitors realign their consumer outreach efforts. With the transition to individual loyalty programs, it will be interesting to see how customer behaviors adapt and how well retailers succeed with their new approaches.
For shoppers, the transition means new rules for managing rewards; hence, it is prudent to understand fully how changes can affect their points, savings, and overall shopping experience.
