Oh the middle class wrath of it all. A cost of living crisis will this year see the biggest fall in living standards since records began, the Bank of England revealed this week. Energy bills are set to rise by over £700 per household. Interest rates are on the rise, and food price inflation is adding to the pressure. And what are Waitrose customers getting upset about? A free newspaper.
‘Waitrose customers in fury as supermarket SCRAPS free newspaper for loyalty card customers’, screamed the Daily Mail this week, after myWaitrose customers were notified that the offer was ending this month as part of a loyalty card reboot.
A reboot is certainly long overdue, as the list of benefits has been drastically watered down in recent years. The Tesco price match was quietly dumped in 2016. In 2017 the free coffee deal was tweaked so you had to spend £10 or more. In 2018, you had to bring your own cup too (to save the planet). And in 2020 free coffee was killed off (‘for the time being’) due to the coronavirus.
In fact it’s hard to remember the last ‘price event’. Under aptly named ex-CEO Mark Price they used to happen twice a year. Not any more. And where once the ‘power of free’ was powerful and clever (exploiting the difference between the perceived value of a free item and its actual cost), it’s been diminished, cheapened and undermined by successive dilution - and more importantly, rampant inflation elsewhere in the shop.
So it will be fascinating to see what Waitrose comes up with instead of those free newspapers which, it pointed out, only 5% of shoppers are taking advantage of. Though details ahead of the 22 February relaunch are limited, it’s promising more personalised offers, more members-only prices, and discounts on cooking classes (I wonder how many will take those up).
In recent years personalisation has been a big area of focus in the development of loyalty cards, and Waitrose is behind the curve here, sending out analogue vouchers (in the actual post). What’s more they’ve done nothing to widen the cooking repertoire of a Waitrose foodie, offering more of what you like.
Other ideas in loyalty are also gaining hold. Fun and games. Charity donations. Health-based incentives.
Above all, though, Waitrose needs to tackle its value perception. So new commercial director Charlotte di Cello better come up with something good. Because even if you’re middle class, food price inflation and the cost of living crisis is an issue.
Of course, perceptions of value are relative to particular demographics. A bootstrap shopper like Jack Monroe won’t get exercised by free newspapers.
But if you are a Waitrose shopper and you’re not getting good value, without those perks like free coffee and free newspapers, what even are you?
Loyalty is under threat like never before. There’s nothing shoppers can do to stop the 54% increase in household energy bills. But they can shop around and they will. In fact, they already are.
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