Coles to roll out vamped-up loyalty scheme with free delivery

Coles is pushing for a new shot in the online supermarket war with the launch of its revamped loyalty program, taking note from online retail giant Amazon.

Called Flybuys Max, the supermarket giant is offering free delivery for online purchases for a $10 monthly or $99 annual fee.

The superior loyalty tier will also offer online video streaming services and five per cent discounts on all fresh produce, including meat.

It comes in a bid to engage customers, taking a leaf out of Amazon’s Prime subscription service which provides free delivery, access to streaming services and discounts products.

Marketing Focus’ Barry Urquhart tells Ross Greenwood Coles has “underperformed” online.

“At the moment, online and home delivery is not performing. They’ve got to reach out and get better engagement with their customers.”

Mr Urquhart says it comes at a risk for Coles, with customers not being particularly loyal to one supermarket over another.

“60 per cent of the people who have a Flybuys card also have a Woolworths card.”

It means Coles and Woolworths are at risk of losing customers to online retailers such as Amazon.

“People are more loyal to Amazon than to the brands that they buy on Amazon.

“All of a sudden the loyalty is based on the platform, rather than the brand.”

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