To say that Safeway knows a little something about customer engagement and brand loyalty would be quite an understatement. Safeway’s massively popular Just for U customer loyalty program, which launched in 2010, is a key driver for brand advocates.
Keith Colbourn, SVP Loyalty & Analytics, Safeway told Loyalty360 that the loyalty program is vital for customer engagement.
“Loyalty for us is about engaging with customers in a friendly and fun way,” Colbourn said. “We want to provide true value to our customers. We want to make their lives easier and, hopefully, a little tastier. We try and do that every day in our stores. What has changed is how it’s accomplished with opportunities around digital and mobile. The Just for U program allows us to connect with a lot of customers in a digital way. Our tenets have remained constant. The way we define customer loyalty hasn’t changed.
Colbourn has seen the program grow via smartphones and tablets. Based in Pleasanton, CA, Safeway’s Just for U customer loyalty program offers personalized discounts based on past purchases while it drives market share gains and profits. The company also runs Vons, Pavilions, Tom Thumb, Randalls, and Carrs stores in the U.S. Safeway customers can access their Just for U accounts at the grocer’s website and click on the personalized offers and manufacturers’ coupons they want placed electronically onto their Safeway Club Card. The tailored offers are based on a customer’s historic purchases that Safeway collects through Club Cards. Safeway can cut prices more efficiently through its “Just for U” personalized pricing by creating special deals on those products that an individual customer buys regularly.
“We’re able to complement our weekly ad with a digital experience on our website or on an app,” Colbourn said. “The customer is getting more relevant offers, saving time and money. The Just for U app has all personalized offers. People in our stores see their favorite cashiers and feel like they’re known. When they log onto our website or app, we want them to feel like they’re known and that those items are for them. The program has brought tremendous success as far as engagement with shoppers. They can pre-shop the store in a digital way and get unique and compelling offers. We’ve been able to deliver significant loyalty and top line growth, and customers have rewarded us with increased sales and loyalty.”
Colbourn said he’s impressed with millennials as they comprise a large part of the Just for U population.
“They represent a significant part of our business and they desire to interact with us digitally,” he explained. “We didn’t get it perfect out of the gate, but it was constant refining and that got us to this leading program we have today.”
Engaging employees is also a critical component of Safeway’s success.
“It starts with a cultural tone, being customer-focused, and helping our cutomers feel appreciated,” Colbourn said. “It’s a people business and we try and reinforce that and make sure our associates feel appreciated as well. Our associates receive special offers through Just for U for holidays and deli offers as well. It’s a great way to acknowledge work done by the teams. We spend a lot of time with associates and team members, focusing on what is Just for U and how do we bring it to life for shoppers.”
Colbourn believes there is considerable room to grow with Safeway’s current loyal customers.
“Some of our best customers became even better customers after engaging with Just for U,” he said. “We didn’t launch the program with an app, but later did and, for many, it’s their primary interaction with us.”