Giant Eagle’s Smart Flight to Tiered Loyalty Program
This week, Giant Eagle introduced a pilot of its new myPerks loyalty program in the Canton, Ohio, market, as reported by Progressive Grocer sister publication Chain Store Age and others.
The program provides a $1 reward for every 50 “perks” earned at the grocer’s Giant Eagle, Market District and GetGo banners. Further, customers are also able to earn perks during transactions when they’re redeemed, and will have the perks expiration period extended to at least 90 days.
According to Giant Eagle, myPerks is the first multitier loyalty program launched by a major U.S. supermarket. Customers who earn 2,500 qualifying perks within a six-month earning period unlock the myPerks Pro tier, allowing them to earn 50% more perks on such purchases as groceries, retailer gift cards, gasoline and prescriptions.
The food retailer’s tiered loyalty offering is a savvy move, one industry observer asserts.
“Giant Eagle’s new myPerks program trial is a good move as more grocery retailers ramp up their own operations during the pandemic, predominantly including loyalty perks that make shopping faster and more convenient while budgets remain tight,” noted Tom Caporaso, CEO of premium loyalty provider Clarus Commerce, based in RockyHill, Connecticut. “While a lot of retail shopping has been happening online, consumers still need to get other commodities quickly, like prescriptions, gas and weekly food items that are often more convenient to pick up at a brick-and-mortar location. This is supported by the recent arrival of Walmart+, a premium loyalty program that is going head to head with Amazon Prime. While Prime provides fast shipping and discounts, Walmart’s physical footprint can provide consumers with fast grocery delivery and pickup, fuel rewards, prescription renewal, and more. And with 11% of Americans already enrolled in Walmart+, the program has become the model to inspire."
Caporaso added that “Giant Eagle is doing something similar [to Walmart+], leveling up its loyalty program to provide better gratification to loyal shoppers purchasing groceries and gas. While it’s not offering a premium loyalty program where customers pay a membership fee for enhanced benefits yet, a tiered program is a good approach to identify the brand’s top customers and to then hold onto them for the long term with exclusive access to instant discounts that are redeemable upon every checkout. If the trial succeeds, we can anticipate that this tiered approach could be a possible stepping stone for a premium loyalty offering, especially as 54% of this year’s consumers are motivated to join grocery premium programs, while 40% are interested in gas perks and rewards. Giant Eagle has a huge opportunity to attract more shoppers right now, but it’s in an even better position to retain its current customers for years to come.”
Giant Eagle operates more than 470 stores throughout western Pennsylvania, Ohio, northern West Virginia, Maryland and Indiana. The Pittsburgh-based company is No. 39 on The PG 100, Progressive Grocer’s 2020 list of the top food retailers in North America.