Welcoming Foodstuffs

Foodstuffs Case Study
4
min read

The Journey

Foodstuffs were founded in 1922 and is New Zealand’s largest Grocery Retailer owned by the retailers’ cooperatives Foodstuffs North Island Limited and Foodstuffs South Island Limited.

The Solution

It’s the first time Union Coop digitalises their loyalty program, and with two main businesses in grocery retail and in shopping malls, they hope to make their business more relevant to for the future.

They were looking to enhance the customer experience and using it to drive their growth.

They were looking to enhance the customer experience and using it to drive their growth.

They were looking to enhance the customer experience and using it to drive their growth.

“We chose Lobyco because we were looking for someone that we could align with, not just functionally and technically, but also culturally. Their heritage is from a cooperative, so they understand us as a cooperative ourselves.”

Simon Kennedy

CDO, Foodstuffs North Island

The Solution

In November 2024 Foodstuffs, with the help of Lobyco, successfully launched a new in-house, rewards and currency-based loyalty program for all 140 New World stores throughout New Zealand. This replaced the previous reward currency with “New World Dollars”, a more straight-forward system where every dollar spent earns New World Dollars, making it easier for customers to track and redeem rewards.

By seamlessly integrating Lobyco’s currency solutions into the already well-established New World Clubcard App, members now are clearly able to see the value of New World Dollars they earn in every transaction. This enhancement makes it easier for customers to track and redeem rewards, but also allows Foodstuffs to better understand customers, tailor experiences and benefits that reflect their needs, and provide transparency through a simple loyalty conversion.

Foodstuffs have utilised many of Lobyco’s innovative loyalty solutions to further boost customer loyalty by providing unique and rewarding experiences. The full suite of solutions include:

  • Currency Master: using Lobyco’s API based real-time currency solution has allowed Foodstuffs to enhance the customer loyalty experience. Customers can easily track and redeem their New World Dollars with every transaction. This feature allows Foodstuffs to activate currency-based marketing campaigns, incentivising customers to increase spend by offering rewards such as multiples, happy hour, product bonus etc.  

  • App Feed, Banners, & Push Services: By leveraging the Lobyco Communication suite, Foodstuffs can send actionable and highly personalized brand communications to customers within the NW app. Allowing for tailored marketing messaging for all customers or specific segments. The App Feed contents can be tailored to include offers, recipes, competitions, partnerships and other customized content, empowering marketeers’ ability to communicate with customers.

  • Games: With this engaging feature, New World customers can play games to win New World Dollars and a variety of prizes. The fun and entertaining mechanic raises awareness of the new loyalty program and drives action by encouraging customers to head instore to redeem rewards. Customers are rewarded for their engagement and loyalty, leading to increased store visits as they seek more rewards.  

  • Challenges: this highly effective feature significantly influences purchase behaviour, through challenging customers to purchase a set number of products, increase their basket size, or make a certain number of trips during a campaign period. By rewarding these favourable behaviours or actions, Foodstuffs are able to increase customer spend by either increasing frequency or basket sizes.  

  • Promotions platform: this feature allows Foodstuffs to be able to create promotional campaigns, sending targeted or personalised discount-based offers to support any campaign objectives, and influence desired customer actions. All campaigns are seamlessly created, edited and implemented within Lobyco’s promotion platform, with a full suite of services ready to use.

Simon Kennedy, Chief Digital Officer

Simon Kennedy joined Foodstuffs North Island in April 2019 as Chief Digital Officer, and has a big role in implementing the new partnership between Lobyco and Foodstuffs.

"We want to offer a great experience across all our channels at all times, meeting our customers wherever they are. This is about us earning their trust so we can give back to them in terms of a more relevant, engaging experience. This approach not only benefits our customers but also reinforces our commitment to them—and that is what loyalty is all about."

Dominic Quin, Group GM, Marketing & Media

Dominic Quin is Foodstuffs NZ Group General Manager leading the national Marketing, Branding and Communications department, serving both Foodstuffs North Island and Foodstuffs South Island.

"One of our challenges was that our member-owners didn’t have the ability to connect with their customers through digital channels and engage at key decision-making moments for the customer. Now, with this new platform, our members can connect directly with our customers."