WEST SACRAMENTO, Calif. — Raley’s here said last week it has launched a new loyalty-card program called “Something Extra” through a new partnership with DunnhumbyUSA.
DunnhumbyUSA, which is a joint venture between Cincinnati-based Kroger Co. and London-based Dunnhumby, has worked with Kroger on its marketing and customer loyalty programs since 2003. The company analyzes customer data to tailor marketing offers toward specific customers.
“Something Extra has been more than three years in the making and was specially designed to improve the shopping experience of our most loyal customers,” said Mike Teel, Raley’s president and chief executive officer, in a statement. “By learning from our customers’ shopping preferences, Something Extra will deliver customized offers on the products they purchase most, which will make their shopping experience easier and more satisfying. As our customers continue to engage in Something Extra, we will evolve and grow the program to respond to their needs.”
Read more: Walgreens to Launch Mobile Rewards Program
In an interview with the Sacramento Bee, Teel said the new loyalty program — which centers around a brightly colored loyalty card — represents a “paradigm shift” for the company, moving away from a supplier-driven perspective to be more customer-focused.
“From the very top down, Raley’s is committed to being a customer-centric organization and doing what is best for their customers. That dedication and their ability to move nimbly has led them to this point in their journey,” said Stuart Aitken, CEO, DunnhumbyUSA, in a prepared release.
One Point Per $1 Spent
Rather than offering discounts at the checkout like many loyalty cards, the Something Extra program allows Raley’s customers to earn one point for every $1 spent on eligible products. Points will be awarded to customers in the form of quarterly rewards vouchers that can be used toward savings on a future purchase.
The move comes as Raley’s faces increased competition in the market, including five new Walmart Neighborhood Market stores that opened last month, recent entries by Sprouts Farmers Market and Fresh & Easy, and new stores planned from The Fresh Market.
More news: Raley's Shuts Two More Stores
Raley’s, which operates 128 stores in Northern California and Nevada under four banners: Raley’s, Bel Air, Nob Hill Foods and Food Source, has shuttered a handful of locations over the past year. It is also involved in a long-running labor battle with the United Food and Commercial Workers union in the market.
Raley’s has long been the dominant grocer in the Sacramento market. It remains the market leader with about a 24.6% share, according to Metro Market Studies’ 2012 Grocery Distribution Analysis and Guide. Pleasanton, Calif.-based Safeway is No. 2 with a share of 15.5%, followed by Costco with 12.1% and Save Mart Supermarkets with 8.6%.
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