Woolworths vs. Coles: Loyalty scheme shift you need to know about
By
Gian T
- Replies 17
Navigating the world of supermarket loyalty programs can be as tricky as finding the shortest queue at the checkout during peak hours.
Recently, Coles significantly changed its Flybuys program, causing a stir among shoppers who were suddenly prompted to claim a $10 discount for every 2,000 points accumulated at the checkout.
This alteration has confused many customers and, frankly, a bit miffed.
While Coles' new system allows you to redeem a $10 discount as soon as you hit the 2,000-point mark, this discount affects the number of points you can collect on that shop.
A Coles spokesperson explained that customers would continue to earn points on the value of their shop.
‘When customers opt-in to take $10 off their shop, they will still collect points on the value of their shop, but after the $10 off, and any other discounts and savings are applied,’ the spokesperson said.
Woolworths, on the other hand, has taken a different approach.
‘Shoppers will still accumulate the points on the full shop before the $10 discount,’ a Woolworths spokesperson stated.
A Sydney mum's experience illustrated this perfectly. Her $13.25 purchase earned her $14 points after the $10 discount was applied at Woolworths.
In response to customer feedback, Woolworths removed the automatic prompt on self-service screens that asked customers if they wanted to use their $10 discount after collecting 2,000 points.
‘We have removed the automatic prompt on the self-service screen in Woolworths supermarkets and at BIG W, following significant customer feedback showing our members prefer to save their Reward dollars to use after they have accumulated a higher reward amount, as opposed to redeeming $10 each time they reach 2,000 points,’ a spokesperson announced.
‘This allows our members to apply a larger saving to their shop when they need it most.’
‘Customers can easily redeem their rewards dollars at the checkout by selecting ‘Reward dollars’ on the payment screen.’
But what's the best way to use these points? According to Angus Kidman, a personal finance expert at Finder:
‘You'll actually get maximum value from supermarket rewards by converting them into frequent flyer points - Qantas from Everyday Rewards or Velocity from Flybuys - rather than the $10 off offer,’
‘For instance, 16,000 Everyday Rewards can be converted into either $80 off or 8,000 Qantas Points.’
‘Those 8,000 points will pay for a one-way reward flight from Sydney to Melbourne - which can easily cost $150 or more. Even when you factor in paying the carrier charges, the flight option is much better bang for buck.’
‘That said, if you’re definitely not planning to travel, getting the $10 off is still a welcome bargain.’
Finder's research indicates that 40 per cent of Aussies experience a significant financial stressor due to grocery bills, a figure that has more than doubled over the past four years.
Every little saving counts, with the average household spending nearly $10,000 yearly on groceries.
‘Aussies are having to fork out more than ever on everyday groceries, so it’s great to be able to enjoy some perks in return,’ Kidman added.
In related news, Qantas and Woolworths unveiled the largest points giveaway in Qantas Frequent Flyer program history, offering 50 million points.
Fifty fortunate Woolworths, Big W, and BWS shoppers can win one million Qantas Points each. Read more about it here.
Have you noticed these changes at the checkout? Which loyalty program do you prefer, and why? Feel free to share your experiences and tips with our community in the comments below.
Recently, Coles significantly changed its Flybuys program, causing a stir among shoppers who were suddenly prompted to claim a $10 discount for every 2,000 points accumulated at the checkout.
This alteration has confused many customers and, frankly, a bit miffed.
While Coles' new system allows you to redeem a $10 discount as soon as you hit the 2,000-point mark, this discount affects the number of points you can collect on that shop.
A Coles spokesperson explained that customers would continue to earn points on the value of their shop.
‘When customers opt-in to take $10 off their shop, they will still collect points on the value of their shop, but after the $10 off, and any other discounts and savings are applied,’ the spokesperson said.
Woolworths, on the other hand, has taken a different approach.
‘Shoppers will still accumulate the points on the full shop before the $10 discount,’ a Woolworths spokesperson stated.
A Sydney mum's experience illustrated this perfectly. Her $13.25 purchase earned her $14 points after the $10 discount was applied at Woolworths.
In response to customer feedback, Woolworths removed the automatic prompt on self-service screens that asked customers if they wanted to use their $10 discount after collecting 2,000 points.
‘We have removed the automatic prompt on the self-service screen in Woolworths supermarkets and at BIG W, following significant customer feedback showing our members prefer to save their Reward dollars to use after they have accumulated a higher reward amount, as opposed to redeeming $10 each time they reach 2,000 points,’ a spokesperson announced.
‘This allows our members to apply a larger saving to their shop when they need it most.’
‘Customers can easily redeem their rewards dollars at the checkout by selecting ‘Reward dollars’ on the payment screen.’
But what's the best way to use these points? According to Angus Kidman, a personal finance expert at Finder:
‘You'll actually get maximum value from supermarket rewards by converting them into frequent flyer points - Qantas from Everyday Rewards or Velocity from Flybuys - rather than the $10 off offer,’
‘For instance, 16,000 Everyday Rewards can be converted into either $80 off or 8,000 Qantas Points.’
‘Those 8,000 points will pay for a one-way reward flight from Sydney to Melbourne - which can easily cost $150 or more. Even when you factor in paying the carrier charges, the flight option is much better bang for buck.’
‘That said, if you’re definitely not planning to travel, getting the $10 off is still a welcome bargain.’
Finder's research indicates that 40 per cent of Aussies experience a significant financial stressor due to grocery bills, a figure that has more than doubled over the past four years.
Every little saving counts, with the average household spending nearly $10,000 yearly on groceries.
‘Aussies are having to fork out more than ever on everyday groceries, so it’s great to be able to enjoy some perks in return,’ Kidman added.
In related news, Qantas and Woolworths unveiled the largest points giveaway in Qantas Frequent Flyer program history, offering 50 million points.
Fifty fortunate Woolworths, Big W, and BWS shoppers can win one million Qantas Points each. Read more about it here.
Key Takeaways
- Coles changed their points redemption process for Flybuys, where shoppers can claim a $10 discount for every 2,000 points earned, which applies after other discounts and savings.
- Woolworths, however, allows their Everyday Rewards customers to accumulate points on the total value of the shop before any $10 discount is applied.
- Woolworths removed the automatic prompt to redeem $10 discounts after customer feedback, allowing customers to save their points and apply a larger saving later.
- Using supermarket rewards points for frequent flyer points, such as Qantas from Everyday Rewards or Velocity from Flybuys, may offer better value than a $10 discount, especially for travellers.