Woolworths – one of Australia’s big two supermarket chains – has severed its points-earning partnership with Qantas Frequent Flyers saying consumers want instant gratification not a long-term relationship.
It’s switching to new scheme in which customers earn ‘Woolworths Dollars’ that can be redeemed against their shopping bills when the balance hits 10 or more dollars.
“We are in a world of immediate satisfaction, people want simplicity, and they want it now, and so this is what the scheme does,” Woolworths’ Managing Director Brad Banducci told The Australian.
“It is really, authentically trying to act on what customers want. It’s very simple. When (customers) have achieved something they want it immediately without any caveats or catches associated with it.
“They want immediate satisfaction. We are in an impatient world.”
The arrangement formally ends on Dec 31 while the new scheme kicks off on Wednesday.
It’s all part of a struggling campain to turn Woolies slow sales result around by trying to show it’s cheaper than rival Coles, which has all the momentum.
“Down Down” is the mantra at Coles and that’s where Woolies has to go.
Losing Woolies – probably its major partner in fact with 1000 large stores – is a blow for Qantas Frequent Flyer, especially now that Coles is has entered a points partnership with Etihad.
Australian Business Traveller reports the deal allows users to not only earn loyalty points but status credits that could make the difference between a bronze or gold membership.
Watch out for Qantas to announce a major initiative or deal any time soon.
Interesting to see what happens from here on in.