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News from Tower Systems about locally made POS software for specialty local retailers.

Woolworths to introduce receipt driven loyalty program


AustraliaIT reports that Woolworths is to trial technology which promotes items based on the contents of a customer’s shopping basket. The Australian says this is “up-selling on steroids”. Woolworths, of course, will charge suppliers to be the product promoted in the up-sell.

We’ve been doing something like this in our software for almost two years – targeting up-sell opportunities based on what is in the shopping basket. But since we’re at the small business end of retail and since our users decide for themselves how such marketing tools are used, there is no group wide or national strategy behind the technology. However, if Woolworths gains traction I’d expect some of our clients would want to get together with us to see if we can aggregate to achieve a better opportunity for them.

I like this idea of reward for the basket purchased as it makes it easier to assess your value to the retailer. FlyBys and similar points programs are close to being a scam with the amount you have to spend before anything truly rewarding is available.

Certainly the media coverage given the Woolworths story has encouraged me to revisit how we promote our point of difference in this area of loyalty.

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By Mark