BRENTWOOD, Calif. -- Westward Ho Markets here is seeing its grocery sales take off after adding a program that awards frequent flier miles based on the amount of products purchased.
The program, coordinated by Visionary Concepts, a Pittsburgh-based marketing firm, awards one American Airlines "AAdvantage" frequent flier mile to shoppers with AAdvantage accounts for every dollar spent at Westward Ho. Shoppers collect their register tapes and place them in an envelope that is sent to Visionary Concepts, which then credits the customers' AAdvantage accounts.
Ben Del Prince, vice president of marketing at Visionary Concepts, told SN that although Westward Ho is the first grocer to use the American Airlines program, Visionary Concepts is involved in talks with other chains, which he declined to name.
Westward Ho, which operates five upscale stores under the Westward Ho, Gibson & Cooke and Trancas Grocery banners, began the program early last month and will run it through mid-January. Initial results from the program appear favorable, David Assayag, vice president at Westward Ho, told SN.
"Customer response has been tremendous," he said, stressing that the holidays and other promotions must also be factored in.
"Because of other factors it is really hard to determine if people are buying more groceries
because of the promotion. But from early indications it looks like they are," he said.
Westward Ho is merchandising the promotion with materials provided by Visionary Concepts.
"We've done quite a bit to promote this. We are heavily merchandising the event with point-of-purchase, window signs, outside banners, inside banners, danglers and newspaper advertising. Plus in each of our stores we are also having a 25,000-mile in-store giveaway sweepstakes," Assayag said.
Shoppers who charge their purchases to their American Airlines Visa cards or American Express frequent mileage cards receive double miles.
Westward Ho has the opportunity to renew the program once its 10-week run has concluded. Visionary Concepts, which has dubbed the program Shop & Soar, is offering it on a market-exclusive basis. Assayag said that if Westward Ho repeats the promotion in the future, it might team up with manufacturers to offer promotions such as double miles with the purchase of a specific product.
Del Prince said Shop & Soar is an ideal way to build sales during down periods.
American charges Visionary Concepts for the miles, the cost of which is passed along to retailers at a modest markup, Del Prince said.
