Dive Brief:

• Natural Grocers has revamped {N}power, its free loyalty program, to streamline point and reward accumulation and add more benefits, the grocer announced last week. 
• Beginning July 1, the program includes perks like $2 as a signup and annual anniversary reward; special pricing for items for free-range eggs, avocados, whole chickens and almond butter; and surprise deals and free items. Members now earn one point for every $1 spent and receive a $2 reward for every 200 points they accumulate, up to $100 per quarter. 
• The loyalty program revamp comes at a time when specialty grocers are looking to outmaneuver traditional grocers and hold onto shoppers they gained during the pandemic.

Dive Insight:

{N}power, which Natural Grocers introduced in 2005, has helped the company boost customer engagement and refine its health-centric positioning. Now it's getting a touch-up as Natural Grocers looks to secure shopper loyalty against traditional grocers, which are expanding their specialty assortment in areas like plant-based foods.  

During the company's second-quarter earnings call in early May, Natural Grocers co-president Kemper Isely noted {N}power membership grew 17% year-over-year and 5% since Q1 to reach 1.4 million members. Sales penetration for the program was 70%, up from 69% during the same period a year ago.

“Our {N}power program continued to strengthen customer engagement and loyalty, driving transaction activity by providing a compelling platform for optimizing marketing, promotions and enhancing the customer experience,” Isely said on the earnings call. 

Grocers across the U.S. have sweetened rewards for their customers recently. Members of Price Chopper's AdvantEdge Rewards can use points to pay off student loans, while Southeastern Grocers said in May its loyalty program shoppers can play digital games to earn personalized rewards.

Ramping up digital rewards can be a way for grocers to appeal to shoppers increasingly turning away from print ones. For example, Sprouts Farmers Market reallocated its budget for print marketing materials to digital campaigns. 

In rolling out the new benefits, Natural Grocers is also linking its loyalty program to its expanded private label vitamins and supplements. Until Sept. 30, members can get 10% off the private label line, according to the press release.

In April, Natural Grocers rebranded and expanded the vitamins private label line to all of its stores across its 20-state footprint and offered loyalty members 25% off the line during May to promote the line. By the end of Q3, more than 150 newly formulated options will be in its stores as supplements play a key role in the grocer’s private label selections.