REWE Group is stepping up its game with the introduction of its new customer loyalty program, aptly named the REWE Bonus, set to launch on December 29, 2024. This innovative program marks the end of its long-standing partnership with the popular PAYBACK initiative, which has served millions of customers by allowing them to collect points with their groceries.
Instead of accumulating points, customers will now earn cash bonuses directly represented in Euros. This unique approach is unprecedented within the German grocery retail sector, according to REWE officials, offering customers simpler and more transparent options to reap rewards from their shopping habits.
Peter Maly, COO of REWE Group, emphasized the rationale behind this shift, stating, "The desires of our customers define our actions. With the REWE app and REWE Bonus, we can fulfill their wishes and needs even more effectively and present targeted offers relevant to their everyday lives.”
This transition to the REWE Bonus program is not just about rebranding; it embodies the company’s full-scale transition toward digital solutions aimed at enhancing customer engagement. By replacing points with Euros, shoppers can redeem their bonuses more flexibly and instantly through the REWE app. This means not only can they save money on their next grocery bill but can do so without the hassle of converting points.
The REWE app, which has evolved to become more than just a shopping assistance tool, now serves as a comprehensive platform where customers can manage their shopping experience. It features digital shopping lists, access to online shopping for delivery and pickup, and recipe inspirations alongside the new REWE Bonus.
Elke Wilgmann, head of REWE Marketing, explained, "REWE Bonus is an innovation we’ve developed for our customers, built on years of experience and insights from international market analyses and customer surveys. This allows us more flexibility to respond to diverse lifestyles and provide appropriate promotions nationwide.”
To maximize customer benefits, the REWE Bonus system will incorporate various promotional elements. Customers will have weekly opportunities to collect additional Euro bonuses through special offers on selected products. Coupons will also be available for customization based on individual shopping preferences, effectively personalizing the rewards experience.
Reward boosters will be part of the equation as well. Loyal customers who shop frequently can earn larger bonus values on future purchases, up to 10% on their next shopping trip. This monthly boost connects customer spending directly to more savings, clearly visible within the app throughout the shopping experience.
Another benefit of the REWE Bonus program is the continued availability of over 300 weekly offers for all customers, ensuring they can still enjoy valuable deals even without the PAYBACK points. The system’s straightforward functionality allows even less tech-savvy customers to navigate their bonus collection and redemptions easily.
From the operational side, REWE is pivoting firmly toward digitalization and artificial intelligence, having invested heavily to stay at the forefront of grocery retail technology. This digital strategy is expected to facilitate real-time adjustments to the marketing approach based on customer feedback and shopping behaviors, drawing on best practices from across international markets.
REWE has already demonstrated its commitment to sustainability by replacing printed flyers with digital communications, saving significant amounts of paper and energy. The REWE Bonus initiative is seen as another step toward enhancing operational efficiency and contributing to its eco-friendly objectives.
With the launch of the REWE Bonus program, customers who have previously relied on the PAYBACK system will need to adapt to this new model. While PAYBACK points will remain valid beyond the end of 2024, they cannot be redeemed at REWE stores, marking the end of an era for many loyal customers.
The transition aligns with broader trends being observed across retail. Companies like Lidl and Kaufland have also revamped their customer loyalty initiatives, but REWE's direct Euro rewards model distinguishes it from competitors, promising customers greater clarity and immediate gratification.
"With REWE Bonus, we are setting new standards: Euros instead of points, flexible redemption, and tailor-made offers. This modern concept has the potential to resonate with many customers,” Maly remarked, pointing to the anticipated success of the program.
The culmination of these efforts aims to build stable, long-term relationships with customers, allowing them to feel valued and understood amid the fast-evolving retail environment. Whether or not this program truly enhances customer loyalty over time will depend largely on its implementation and the company’s ability to adapt to consumer needs.
Gathering momentum as the end of the year approaches, REWE is prepared to debut this major overhaul of its loyalty system with high hopes.