Hannaford, part of the Ahold Delhaize group, has rolled out a pilot rewards program to 11 of its stores in Burlington, Vt. Called My Hannaford Rewards, it’s part of a long-term initiative that’s been in development for more than two years. It’s also the first time Hannaford tries its hand at a rewards program.
Founded in 1883, the supermarket retailer started out as a fresh produce vendor in Portland, Maine, and has remained committed to offering customers fresh food options. Hannaford also follows an everyday low price strategy. In 2013, it announced the launch of a multimillion-dollar program to further reduce its already competitive prices. Understanding that it takes more than EDLP to remain competitive in an increasingly crowded space, the retailer began determining innovative ways to serve customers and drive growth as part of its Hannaford 2020 strategic effort. My Hannaford Rewards is one of the results of that effort; the supermarket retailer plans to leverage it to increase the number of shopping trips customers make annually, as well as to boost the number of shopping trips they make for special occasions and to stock up on items.
“As part of Hannaford 2020, we were determined to create a rewards program that adds value to the existing Hannaford experience, without taking anything away. Technological advancements and the design of this program allow us to do that. We have found a way to keep our prices the same — and at a single level [tier] for all customers — while offering customers additional benefits. Program users receive rewards for shopping with us regularly and tailored offers for the kinds of products they purchase. No two-tiered pricing or exclusive prices, just additional value,” the company told Own Brands Now.
When developing the rewards program, Hannaford wanted to offer customers personalized rewards and special offers on the foods they buy most often via a straightforward and seamless experience. Customers can sign up online at rewards.hannaford.com, in-store or by downloading the new My Hannaford Rewards mobile app. The app allows customers to sign up instantly, easily earn and track their rewards and redeem personalized coupons and exclusive offers. To earn and redeem rewards and offers, shoppers can scan their phones or enter their phone numbers at checkout.
As for the rewards themselves, customers earn 2% on all private brand item purchases, including fresh produce, meat, seafood and other items from Hannaford’s private labels portfolio, which consists of Hannaford, Taste of Inspirations, Nature's Place, Healthy Accents, Cha-Ching and Home 360. They will also receive personalized coupons and special offers on the national brand items they buy regularly. Leveraging both private and national brands to deliver value to its customers is what makes the program so robust. National brands certainly seem to be on board. “We've had a lot of interest [in the coupon offers] from larger consumer companies, but also from small brands. They see this as a way to target their marketing dollars to customers who will be most interested in their products,” the company explained.
Rewards can be redeemed each quarter, and there is an initial one-time enrollment offer of free groceries available to the first 40,000 customers who sign up through Nov. 15, 2017. Hannaford is also already looking to the future and open to offering free and near-free products periodically, supported by brand partners that are launching new products or highlighting existing offerings.
Before rolling out the program in the Burlington area, Hannaford turned to its customers for feedback and found that 90% of shoppers asked said they would likely sign up and 100% of millennials said they were interested in enrolling. Hannaford anticipates a full launch in all 181 stores — located in Maine, New York, Massachusetts, New Hampshire and Vermont — by early 2018.