Grocers have largely missed the mark with their discount pricing clubs.

The folly of some of these programs was exposed in published research where mystery shoppers at several California supermarkets found that the total cost of a basket of goods purchased at stores offering “club pricing” was actually higher than a similar basket of goods from a chain with no discount program in place.

Was this an anomaly or an exposed weakness? Whatever the answer, even the hint of this news confirms suspicions of skeptical consumers and can send them running to the competition.

Successful loyalty program sponsors use their data to evolve the offer wherever it’s weak, and concentrate on delivering exceptional service to back the offer. Most Grocers are on a path towards these goals but seldom make an effort to create external links between the program and the community to build visibility and stimulate brand preference.

Harris Teeter is a light in this marketing darkness. The large regional grocery chain boasts an upscale store footprint and has a stated focus on service, quality and selection. It positions its Very Important Customer (VIC) program as do many of their competitors, but has gone a step further.

Basketball fans in Charlottesville, Virginia are cheering with their VIC cards. The Virginia Cavaliers, competing in the ACC and showing off their 2 year old John Paul Jones arena, make the game an experience with multiple give-aways and promos during timeouts and half time. Gazing at the NBA quality scoreboard during a recent game, this message flashed on screen.

“Show your VIC Card at the Cavaliers shop and earn discounts on all merchandise”

Yes, this is a simple offer, but think about what it accomplishes:

• If you’re seeing it for the first time, you might be inclined to buy a souvenir at a discount – a win for you and the team.
• Next time you come to a ball game, you’ll actually be thinking of bringing your Grocery Store Loyalty Program card with you – a win for you & Harris Teeter & UVa.
• The next time you hear Harris Teeter telling you “We are a company you would be proud to call “neighbor””, you’ll nod your head in agreement – Harris Teeter wins again!

I take time to write about the VIC program as it is a rare example of a grocer extending its loyalty program brand outside of its own stores and into the community it serves.

The message to fellow grocers might be summed up in a simple statement………

“Show your card and win”. ….. Bill Hanifin