Experts expose truth behind Woolworths Rewards program

As we navigate the aisles of our local supermarkets, many of us clutch our loyalty cards with the hope of saving a few dollars on our weekly shop.

The Woolworths Everyday Rewards program is one such scheme that has found its way into the wallets of countless Australians, promising savings and perks with every scan.

But before you swipe your card again, it's time to take a closer look at what you're really signing up for.



Experts are sounding the alarm on points-based systems like Woolworths Everyday Rewards, cautioning that they may be hindering customers from seeking out the best deals.

These loyalty programs are designed to keep shoppers returning to the same stores by offering points for purchases, which can later be redeemed for discounts or other rewards.


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Experts warned about the potential pitfall of supermarket reward schemes. Image source: Shutterstock



While the idea of earning points with every shop sounds appealing, experts said it is essential to understand the potential pitfalls.

The Woolworths Everyday Rewards program allows members to collect points at a variety of participating stores and partners, including Woolworths, Metro, BWS, BIG W, and even energy providers like Origin Energy.



Once you've accumulated 2,000 points, you're faced with a choice: shave $10 off your next shop or convert your points into 1,000 Qantas points. It's a tempting proposition, but is it really worth it?

Finance Editor Gemma Acton highlighted the downsides of such programs on The Morning Show, noting that Australians tend to overspend when enticed by personalised offers.

She said: ‘Seven out of 10 Australians belong to two of the country’s biggest rewards programs—you have to spend roughly $2,000 to get $10 off your grocery shop.’

‘On the one hand, you do get stuff. On the other hand, we do tend to overspend.’

‘If we get sent an email saying, “I think you’d love this special shampoo we picked out for you”, you’re more likely to buy it when you may not have before—it stops you shopping around,’ she explained.



The lure of collecting points can lead shoppers to make purchases they wouldn't have otherwise considered and to shop at places where prices may not be the most competitive.

For example, you might choose Woolworths over ALDI for your milk, simply to earn points, despite the latter potentially offering a better price.

Moreover, Acton emphasised that enrolling in the rewards program means customers are providing personal information.

‘I think most people know when we buy something (shops) collect the information, store it and build a profile on us,’ she explained.

‘But these programs have lots of partners. So, you might think, “It’s fine, I don’t mind if my supermarket knows what I buy in my weekly grocery shop” but they’re giving the information to insurance companies, credit card providers.’

‘The shared data means they can build up an accurate profile of you.’



This concern was echoed by the Australian Competition and Consumer Commission (ACCC), which recently expressed worries in its interim report on the Digital Platform Services Inquiry, particularly regarding the data collection aspect of these programs.

The report suggested that while consumers may enjoy the benefits of discounts and offers, they may also be unwittingly giving away valuable personal information.


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Acton said that the allure of loyalty points possibly deters shoppers from choosing cheaper grocery options. Image source: Shutterstock



Acton also pointed out: ‘The ACCC consumer watchdog told us yesterday the average privacy policy we get these days takes 29 minutes to read, and that’s just reading without stopping to understand it.’

‘They said if you were to read every privacy policy you come across in a month, it would take two full days and two full nights to get through.’



Woolworths, however, stands by its program, stating that if used effectively, it can lead to significant savings.

A spokeswoman stated: ‘Every month, more than one million members enjoy $10 or more off their shop and last year, members who banked their points for Christmas saved on average $100 to spend over the festive period.’

‘We have also launched a subscription service, Everyday Extra, which can save our members up to $100 a month across Woolworths and BIG W.’

‘As well as 10 per cent off their shop once a month at Woolworths and BIG W, Everyday Extra subscribers collect two times points on every transaction, helping them earn rewards points at a faster rate, leading to more savings at the checkout,’ the company spokeswoman added.

On the subject of personalised offers, the company claimed: ‘We find that being able to provide more relevant offers leads to a better experience and additional value back for members shopping across our businesses.’

‘Our suppliers can in turn utilise the aggregated insights we provide to them to consider how they can tailor their contributions to the various promotions that Everyday Rewards offers to its members, to help provide the most value to our members,’ they added.

Recently, Woolworths announced multiple promotions that could benefit their loyal customers:
Key Takeaways
  • Experts warned that loyalty programs like Woolworths Everyday Rewards can deter customers from seeking the best price by encouraging them to shop at specific stores.
  • The ACCC has criticised the data collection aspect of such programs, highlighting concerns about privacy and the use of personal information.
  • Woolworths claims its rewards program offers significant savings to those who use it effectively, with many customers enjoying discounts on their shopping.
  • Finance Editor Gemma Acton cautioned that while rewards programs offer benefits, they also lead to overspending and sharing of personal data with various partners, which can be used to build detailed consumer profiles.
We'd love to hear from you, our valued Seniors Discount Club members. Have you found loyalty programs like Woolworths Everyday Rewards beneficial, or do you feel they've influenced your shopping habits in unexpected ways? Share your experiences and tips in the comments below!
 
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I take advantage of our staples when the're on special. When the're on, I may buy an extra item. There is only 2 of us & we dont have a big grocery bill. e.g. a "Huge" bill for us is up to $90 about, maybe 3-4 times per year at woolies, &, i.e, "Huge" for us. I get sick to death receiving their emails saying what u will receive if you spend $150 in a single shop. Plus for Big W & BWS. It takes us a bit of time to wrack up to receive $10 off yr next shop. But, it does happen. I really pity where customers have to buy for a family with 5-6 mouths to feed.
 
I save more every week shopping at Aldi than I ever accumulated in points when shopping at Woolies.
I do also shop at Coles which is close to my ALDI, for the few things I can't get at Aldi.
I bulk buy at Coles when the items I want are half price so I never pay full price and I accumulate flybuys points on these.
Years ago, when I shopped at Woolies, I might get $10 back every six weeks or so, I save more than that weekly shopping at Aldi. I save $7.35 on just my fresh pet meat, $4.95 a tray at Aldi and $6 at Coles and Woolies.
We don't drink alcohol so BWS saves us nothing, same with
Big W and in WA we don't have numerous energy providers so no advantage there.
 
She said: ‘Seven out of 10 Australians belong to two of the country’s biggest rewards programs—you have to spend roughly $2,000 to get $10 off your grocery shop.’
It's 2000 points not $$$
You get one point for every $ you spend, 2000 points equals $2000 spent, what's your point?
same/same
 
Thanks for the warning. But like everything else greed is the culprit. Just boost everything, compare prices and shop where you get the best for your buck. Don’t be a slave to advertising. I save the points and buy a nice outfit at BigW for Christmas.
 
I only buy what I need.

I get offered from flybuys if I spend $170 a week over 4 weeks I will receive 10,000 bonus points . I spend more than that every week !

The are gathering information on me ! What by what I buy !!! Then let them I don't say this is personal information.

There is not much personal info they can get from me except my email and address and I have never received anything buy companies eg insurance.

The worst companies that you will be flooded with calls is Compare The Markets which post for them are on here!!

I always use flybuys and always come out in top. I find you get so many more rewards and accumulate $$ faster than with the woolworths rewards. My daughters have also seen this. One daughter always used her woolworths rewards card and hardly built up points. She switched to Coles and flybuys and within 6 months has over $800 in her kitty
 
I am not a slave to my cards but I am happy when I have accumulated my 2000 points from only those items which WW allow to be credited to my card. That $10 saving is a big hit for saving on my pension.
WW & Coles can send all the emails they like but I never read them. They go straight to the rubbish bin. Same with junk mail - I have a sticker on my letter box so that I no longer get this rubbish.
It's all about self-control which is something most of us have forgotten about.
 
When I shop at Woolies, I usually buy only the items I have on my shopping list. The only time I go to other supermarkets is if the item I want isn't available at Woolies, or the other place has a really great special. I never buy to accumulate points, although they are a bonus. I have enough self discipline to buy only the things I need or want.
 
When I shop at Woolies, I usually buy only the items I have on my shopping list. The only time I go to other supermarkets is if the item I want isn't available at Woolies, or the other place has a really great special. I never buy to accumulate points, although they are a bonus. I have enough self discipline to buy only the things I need or want
 
When I shop at Woolies, I usually buy only the items I have on my shopping list. The only time I go to other supermarkets is if the item I want isn't available at Woolies, or the other place has a really great special. I never buy to accumulate points, although they are a bonus. I have enough self discipline to buy only the things I need or want.
But pay top dollar for them at Woolies. I gave up on them years ago. Prefer my money in my pocket.
 
Coles give us much better offers than woolworths spend $50.00 per week for 4 weeks and get 10,000 points which is $50.00. Much better than anything woolworths come up with and easy to spend $50 on essential items and we don't buy more than that. My husband has it down to a fine art
 
We tend to buy when things are on special which works in a four to six week cycle so we save this way. Our pet insurance (with Woolworths) was the best that we could find, both in price and what it contained for claims and gives 10% off each month which we use for our big shop. We buy some things from Aldi but have to travel a distance to get there, mainly for washing detergent, dishwasher and other cleaning items especially. We tend to go by our list and make savings this way. Because we plan and have a routine we make the rewards work for us and manage our costs well. Retirement gives us time now not having to rush and have no time to do things - a more relaxing life style where we chose.
 
I am same as "Marni". I boost everything but do not necessarily buy the boosted products. Unless it is a significant saving of half price and it is something I always use, then I don't bother. I do save my points for xmas. I also check out what coles is offering too in specials, does not mean I buy the products.
 

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