Dive Brief:

• Regional grocer Giant Eagle is introducing a revamped loyalty program in the central Ohio market following a successful trial earlier this year in its sole Indianapolis store, according to The Columbus Dispatch. 
• The updated fuelperks+ program launches today and lets shoppers earn points toward both discounts on fuel as well as up to 20% off grocery purchases. The old program only gave points toward fuel perks.
• In addition to earning points by grocery shopping, customers can accumulate points by having prescriptions filled at the retailer’s pharmacies, fueling up at its gas pumps, and buying a plethora of retailer, restaurant and other gift cards sold in the retailer’s stores and its online gift card gallery. Every 50 perks gets Giant Eagle shoppers 2% off groceries or 10 cents off a gallon of gas at the retailer’s GetGo fuel centers.

Dive Insight:

The revamped Giant Eagle fuelperks+ loyalty program provides members with added flexibility both in how they accumulate rewards and how they can use them. This move is on-trend in an increasingly competitive grocery marketplace where consumers increasingly want and seek relevant offers that resonate with them as individuals.

The recently released Colloquy Loyalty Census found that grocery loyalty program memberships dropped from 188 million in 2015 to 142 million this year, representing a 24% decline. While the decline is partly due to mergers and acquisitions across the sector, it also suggests that grocers must offer more enticing reasons for customers to join as well as remain active users of loyalty programs. This means offering more meaningful and personalized incentives.

The 2017 RedPlum Purse String Survey from media delivery firm Valassis found that 51% of shoppers actually plan their grocery shopping trips around retailer circulars, coupons and deals. So the more value-oriented perks a grocer can offer, the better off it probably is. And for Giant Eagle, the revamped program along with much-needed price cuts across its stores couldn’t come too soon.

The retailer plays in an ultra-competitive Ohio market, where Ohio-based Kroger — along with its own well-regarded and popular Plus Card program — is the market share leader. But the area is a hotbed of grocery activity that also includes the likes of Walmart, Meijer, Aldi, Whole Foods, Trader Joe’s, Fresh Thyme, Costco and Sam’s Club.

Kroger offers a host of grocery-related perks to Plus Card members — e-coupons, Best Customer Bonuses and Free Friday Downloads among others — when using the retailer’s mobile app. Meanwhile, Meijer has been busy adding benefits to its mPerks loyalty scheme, which makes earning and redeeming rewards flexible. Shoppers who earn points in Meijer’s pharmacy department can choose from several rewards, including $10 off a future store purchase; 5% off their total grocery, health and beauty purchase; or 50 cents off per gallon of fuel at Meijer gas stations.

While personalized and relevant offers are appreciated by consumers, retailers probably stand to benefit the most from a well-executed and robust loyalty program. Grocers collect a lot of valuable shopper data and purchase behavior information, which then enables them to segment shoppers and offer increasingly targeted and relevant promotions through the use of sophisticated algorithms and advanced data analytics. More flexibility and personalized deals could be just what some regional grocers need to survive.