“We want to make personalized price cuts even better and more relevant, so that the active customer can get a cheaper shopping cart,” Pia Milbay, director of sales and marketing at Rema 1000, tells Nettavisen.
Æ It is the Rema 1000 Benefits Program, which gives customers discounted prices on the items they shop often.
All major grocery chains have loyalty programs. Coop members receive personalized coupons regularly, based on what they shop for, while earning a bonus that is paid out once a year. Kiwi customers earn money with Trump, the Norgesgruppen benefit app for Kiwi owner.
Rema 1000 has so far focused mostly on the 10 on 10 list, which gives Æ members a 10% discount on ten of the most purchased items, with the highest value, based on their last ten shopping trips. At the same time, members received personal price cuts by one or two.
—We cut the 10 on 10 list entirely, because we want to strengthen and improve the benefits program through even bigger personal rate cuts, Mellbye says.
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You will get a bigger discount
Starting June 7, you’ll receive new in-person price cuts each week, based on what you shop the most. You can get between 10 and 30 percent off items selected for you. At the same time that price reductions, which you will notice directly at checkout, become more convenient for you, you will also get more relevant seasonal price cuts, for example in May, for Christmas or Easter.
Mellbye points out that you don’t get a discount on just one product at a time, but that there may be a discount on many one type of item, for example several flavors of one type of yogurt.
The active customer Æ gets a cheaper shopping cart with our change, Milpay points out.
At the same time, she highlighted another important change:
Take, for example, Omo Cleanser. This item has some value, and some may have this product on their 10 out of 10 list and thus get 10 percent on the item. Now you might get a higher discount rate on Omo, and that offer comes with a “correct” frequency, because it’s not something you shop every week, she explains.
It will reduce your costs
Geir Micklepost, chairman and grocery analyst at Balanza Gruppen AS, told Nettavisen he wondered how smart the 10 out of 10 list was for the Rema 1000.
– Maybe it was an expensive solution, because 10 percent is too much, and there are low profit margins in the grocery industry. So I wondered how they succeeded in that, he says.
“I understand that they cut that list, and that’s enough to cut their costs,” he adds.
He believes that it will be important for Rema to convince customers that personal discounts are really beneficial to them.
– Do you think that customers will lose the change?
– I think customers will be a little skeptical, and assume that Rima is doing it to save money himself, he says.
– How do you think the change will affect the competition between Rema, Coop and Kiwi?
– I don’t think it would matter. I don’t think Rima will get more clients because of this. All three have an app and benefits program, Myklebust says.
Criticism was given to Rima, and when asked if they had cut the 10 on 10 list to cut their costs, Milbay answered the following:
“We’ve heard from customers who have asked for more price cuts, and you’ll be giving active users Æ a cart cheaper than they’d get on a 10 on 10 list,” she says.
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It will make it cheaper for customers
Austin Boroy Olsen, head of digital customer experiences at Rema 1000, told Nettavisen that customers can also consider the personalized price reductions they receive.
You can provide feedback on each individual price reduction, and then you might get a discount on an item more often or more often, he says.
Rima wants to keep prices as low as possible for people, Millbay points out, and that’s something they’re working on regardless of whether it’s war, pandemic, high interest rates, high electricity costs, and increased food prices.
– Rima works every day to make it cheaper for Norwegians, she says.
Although Rema cut the 10 on 10 menu, it keeps the usual offer on fruit and vegetables, plus a 50 percent price cut on nappies, pads and tampons.
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