Albertsons’ loyalty program, Albertsons for U, saw membership grow by 15% year-over-year, reaching 44.3 million members, according to President and CFO Sharon McCollam during the company’s Q3 2024 earnings call.
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GLOAlbertsons’ loyalty program has emerged as a bright spot as the company navigates its path forward following the collapse of its proposed merger with Kroger.
- Albertsons’ loyalty program, Albertsons for U, saw membership grow by 15% year-over-year, reaching 44.3 million members, according to President and CFO Sharon McCollam during the company’s Q3 2024 earnings call.
- The surge in membership was fueled by an April 2024 loyalty program revamp, which streamlined the process for earning and redeeming points. CEO Vivek Sankaran noted that the enhancements led to greater customer engagement, improved retention rates, and higher spending among members.
- As part of its digital strategy, the Albertsons mobile app introduced geolocation features that enable shoppers to receive tailored coupons, locate products in-store, and plan meals. Sankaran projects that by the end of fiscal 2024, more than 8 million customers will utilize these in-store features, further strengthening engagement and driving growth.
The retailer is prioritizing its digital capabilities, making them central to its customer experience and marketing strategies. Its loyalty program, Albertsons for U, plays a pivotal role in integrating customers into its ecosystem.
“Our loyalty program is integrated into our mobile app and is a key engagement tool for our business,” said CEO Vivek Sankaran during a recent call. “It serves as the entry point for digital and personalized marketing and is a primary contributor of data to our retail media collective.”
The loyalty program is a cornerstone of Albertsons’ “customers for life” strategy, which focuses on fostering lasting relationships with shoppers across all channels, regardless of how they choose to shop. Sankaran credited this strategy for contributing to the company’s financial strength, positioning it well to execute its post-Kroger plans.
Albertsons is also focused on enhancing the digital ordering experience through its integrated mobile app, aiming to improve quality, speed, and convenience. Additionally, the company is launching a store-based five-star certification program to ensure consistent, high-quality customer service and is rolling out new marketing initiatives.
Investments in digital capabilities continue to drive growth in Albertsons’ e-commerce operations, which reached 7% of grocery revenue in Q3 2024. The grocer plans to expand its app’s in-store functionalities to boost customer engagement further.
“While we have grown this business significantly and faster than the market, it is still underpenetrated compared to industry benchmarks,” Sankaran noted, adding that e-commerce remains one of the company’s biggest opportunities for both customer acquisition and retention.
This article was originally published on CX Dive
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