Lidl Launches Loyalty
From humble beginnings in 1973, Lidl has emerged as a force to be reckoned with in European grocery retailing. With just 3 employees and 500 products originally on sale in its first store in Germany, its strategy to “revolutionize” grocery shopping with a “refreshingly simple” format has delighted customers in a way that few expected, and the company now boasts over eleven thousand stores in thirty-two countries, including over a hundred stores on the east coast of the USA.
Led by its powerful public commitment to “keep overheads to a minimum and eliminate any unnecessary costs” Lidl has consistently passed on its operational efficiencies to customers, becoming “far and away the cheapest of the six retailers” in the UK. So while the firm has had a simple offer-led app for some years, it was certainly a delightful surprise that the firm has now realised the power of personalisation and is increasingly investing in connecting with its customers individually and clearly rewarding them for their loyalty, with the expansion of the Lidl Plus loyalty programme to the UK, Germany and Ireland.
Let’s explore the value proposition that was described as an “instant hit” in Ireland, with the app going straight at the top spot on the Apple store in this market of “savvy savers“.
Lidl Plus is available in twelve countries so far
Lidl Plus – “Big Savings, No Fuss”
So here’s how it works:
- The Lidl Plus app is available on both iOS and Google Play stores.
- Customers in the UK are incentivised to download it with a 20% instant saving – £5 discount coupon off their first £25 spend.
- The programme is entirely digital with no plastic cards or key fobs. Members scan a QR code in the app at the checkout .
- Members get four Lidl discount coupons per week.
- Members also earn a £10 discount coupon when they spend £200 during a month.
- A key element of the proposition is the concept of “partner offers” such as “up to 40% off” Sky TV and broadband.
- Members also enjoy a free scratch card after every shop, with the chance to win up to £20 off their next shop. One in five scratch cards includes a prize.
- Digital receipts are also highlighted as a key benefit.
Lidl Plus is the innovative grocery loyalty app just launched in the UK and Germany
In summary, Lidl Plus is leveraging ALL of our favourite loyalty tools and techniques – instant gratification, gamification, digital receipts and a commitment to consistent compelling coupons each week which are guaranteed to keep customers opening and swiping, while the cumulative monthly coupons are another compelling concept to excite their customer base to actually spend more. And while push notifications are not mentioned, both email address and mobile number are required in order to join, ensuring Lidl has permission to contact their members directly.
Thankfully, despite the numerous benefits, Lidl has remained true to its core concept to keep things simple. It manages to share the value proposition in under twenty seconds as shown in the video below, but most importantly, it also highlights that just ninety 90 seconds are needed to register. This critical step in the customer journey is designed to overcome the reluctance of busy customers and reassure them around the perceived inconvenience of joining – something rarely seen, yet powerfully effective in an increasingly impatient world.
https://www.youtube.com/watch?v=lSlJTR_DjuA
Lidl Plus Loyalty Programme Launched in UK – August 2020
In closing, Lidl Plus looks set for success and we look forward to paying close attention as it expands the programme throughout Europe this year with more countries expected to follow by the end of 2020.
