Pick n Pay is enhancing its partnership with FNB to expand a loyalty rewards program aimed at attracting FNB customers. Effective April 1, all FNB customers will earn up to 30% back in loyalty points on their purchases, a move intended to reclaim market share and enhance sales amid declining performance.
Pick n Pay, a prominent grocery retailer in South Africa, is expanding its partnership with First National Bank (FNB) to enhance its loyalty rewards program. This initiative aims to attract FNB’s extensive customer base and reclaim market share lost to competitors, particularly Shoprite. Under CEO Sean Summers, appointed in late 2023, Pick n Pay strives to reverse years of underperformance by implementing various strategies, including store renovations and new customer loyalty programs.
The loyalty program was initially launched in November but targeted only high-income clients. As of April 1, the revamped program will allow all FNB customers to earn up to 30% back in eBucks loyalty points on purchases made at Pick n Pay, either in-store or online. These points are redeemable for cash, enhancing their appeal to shoppers.
FNB has reported an increase in grocery spending at Pick n Pay among program participants since November. Remarkably, customers who previously spent less than 20% of their grocery budget at Pick n Pay now constitute 90% of the spending increase. The loyalty program has also significantly boosted online shopping, which has jumped 98% among FNB’s eligible users since its inception.
In summary, Pick n Pay’s expanded loyalty program in partnership with FNB represents a strategic effort to regain market share and boost sales following a period of decline. The program’s accessibility to all FNB customers and the financial rewards it offers may foster brand loyalty and increase customer traffic both in stores and online. This initiative demonstrates Pick n Pay’s commitment to revitalizing its market presence under new leadership.
Original Source: www.marketscreener.com
