supermarketnews.com – Super King Markets, a Los Angeles-based independent operator serving a diverse ethnic customer base, has expanded a loyalty program to all six of its stores following a test at two locations earlier this year, according to the Center for Advancing Retail and Technology.
CART, which connects retailers, manufacturers and solution providers, conducted a case study of the loyalty program at Super King.
According to Raffi Karayan, a store director at one of the two Super King test locations, “The [loyalty] program gives our shoppers a reward [that] engenders in them a feeling of appreciation from Super King and enhances positive interaction between cashiers and shoppers because the cashier ‘gives’ the reward.”
Using a system provided by AppCard, a New York-based third-party provider, Super King launched the loyalty program last March , offering shoppers one point for every dollar spent, redeemable for instant discounts or products, CART explained in a report on the test.
Within 90 days of launch, Super King had approximately 100,000 shoppers enrolled at the two test stores and was able to identify approximately 53% of all transactions to loyalty participants, equal to approximately 65% of total sales, CART said.
According to CART, Super King ran two different personalized marketing campaigns to target specific shoppers.
One was designed to increase basket size, with each of three target groups offered an incentive to spend slightly more than they typically did by using text messages to communicate special offers that were available for only three days. CART said 67% of targeted shoppers took the offers and increased their purchases.
A second campaign was designed to increase sales of slower-moving products by offering double points for purchases of promoted items, with sales of those items increasing “significantly,” CART said.
Following the test, CART designated the AppCard system as a cost-effective way for independents to level the playing field with large chains on loyalty programs.