The following analysis was conducted to discuss the role of, and compare the functioning of, B2C mobile loyalty programme apps. The study drew on examples from the food retail sector.

The study analysed the 12 largest loyalty schemes run by popular supermarket chains operating in Poland, namely: Auchan, Biedronka, Carrefour, HitPol, E.Leclerc, Lidl, Piotr i Paweł, Polomarket, Spar, Topaz, Tesco and Żabka. Payback, which is a multi-partner scheme, was excluded so as not to compromise the methodological consistency of the study.

Mobile apps for loyalty schemes

Issues described in the text:

• Participation by Poles in loyalty schemes.
• Loyalty schemes run via a mobile app.
• The role and functionality of loyalty programme apps.
• An overview of the My Carrefour mobile app.
• Programmes in mature markets.

Participation by Poles in loyalty schemes

According to the findings of the „2019 Loyalty Programme Monitor” survey conducted by the ARC Rynek i Opinia research institute, as many as 59% adult Poles say they take part in loyalty programmes. The most popular programmes are: Moja Biedronka (28%), Payback (14%) and Club VITAY (14%). The most frequently mentioned partners of the Payback scheme are BP and Kaufland. The list also includes, amongst others, Tesco Clubcard, Lidl Plus, Auchan Skarbonka and Carrefour Rodzinka.

Women make up the majority of participants in loyalty schemes in the food retail sector – 68%, which is 8 percentage points higher than for B2C loyalty schemes as a whole. The largest group, however, consists of people aged 26–65.

The use of mobile loyalty programme apps

Mobile apps used in loyalty schemes are designed specifically with people aged 26–65 in mind. As many as 72% participants say they use such services. The higher the percentage, the younger the respondents. Women are more likely to use the apps – as many as 76% women and 67% men reported doing so. These percentages are rising rapidly year on year. In 2016, 38% respondents admitted to using the app; in 2017, 53%; and in 2019, 60% (according to reports from the Loyalty Programme Monitor for previous years).

The main reasons for the app’s popularity are convenience (not having to carry an extra plastic card), receiving notifications about special offers, and being able to check transaction history. They are also most commonly used to check current sales and discount vouchers.

In this market segment, having a mobile app is now virtually the norm. Loyalty schemes that do not offer a smartphone version – as is the case with the Hitpol chain, for example – merely demonstrate a failure to understand customers’ needs.

The role of mobile apps

Mobile apps are usually assigned one of two roles. Most commonly, they serve as the primary medium for implementing a loyalty programme. If the organiser does not issue plastic cards or provide access to the account via a web browser, customers are obliged to install the app. This approach is used, for example, by Lidl Plus, Polokarta and Żappka.

In other cases, the app is just one of many ways to use the loyalty scheme – it is designed to make it more appealing and easier to use. Customers have access to promotions via other channels, but they can reach for their smartphone at any time. This group includes, amongst others, Mój Carrefour and Moja Biedronka.

The following features are available in the apps:

• E-card or ID;
• Points balance;
• Purchase history
• A repository of e-vouchers and leaflets;
• The „Your Account” section;
• Geolocation of points of sale;
• Online ordering platform;
• E-payments;
• Communication with staff via push notifications;
• Gamification and promotional module:
  • e.g. virtual scratch cards in the Lidl Plus scheme or virtual „Your Stickers” in the My Carrefour scheme;
• Special sections:
  • e.g. Scan&Go or the sale of Lotto tickets via the My Carrefour app;
  • integration of cards from other schemes, e.g. the Family Card and the Senior Citizen Card into My Carrefour;
  • price scanner;
  • shopping list.

This list provides an overview of the features of the loyalty programmes analysed in the food retail sector. This means that no single application will include all the modules listed.

An overview of the My Carrefour mobile app

The Carrefour chain runs several different loyalty schemes, including Mój Carrefour, Karta Rodzinka and Karta Seniora. It issues plastic cards (for the latter two schemes) as well as virtual cards (for the first scheme).

To sign up for the My Carrefour programme, you need to complete the registration form in the mobile app. You can also hand in a paper questionnaire in-store or call the dedicated helpline. Only basic details are required for registration – the amount of information has been kept to the absolute minimum.

Customer identification at the till is carried out by presenting the barcode on a physical or virtual card. The scheme involves collecting points, which are then exchanged for discounts. Purchases are calculated accordingly, depending on the value of the shopping basket. A spend of less than 10 zł earns 1 point. Every further 10 zł spent earns 3 points. Once 600 points have been collected, they can be exchanged for a 10 zł discount voucher – to be redeemed on your next purchase.

The app has a tab where you can add a plastic card by scanning it or entering the number manually. This allows you to link your Staff Card, Family Card or Senior Card.

Sections of the mobile app:

• Benefits and special offers:
  • discount vouchers;
  • e-vouchers;
  • leaflets.
• Shopping in shops:
  • virtual card;
  • shop finder;
  • price scanner;
  • Scan&Go;
  • shopping list;
  • mobile payments;
  • a channel for selling Lotto tickets;
• Online shopping – go to the website;
• Information:
  • financial services;
  • terms and conditions;
  • Privacy Policy;
  • contact;
  • report a problem;
  • Rate the app;
  • recommend the app;
  • Log out.
• Recommended offers – guides (on the website), leaflets (formatted for smartphone screens) and discount vouchers.
• Recently used – app bookmarks opened recently.

To be able to make full use of all the app’s features, you must grant permission for the app to access your camera (this is required for scanning barcodes) and share your smartphone’s location (discount vouchers are linked to specific shops).

The app allows users to make online purchases, but when you tap on this tab, you are redirected to a website. The e-payment module, however, is integrated with Mastercard’s Masterpass service.

Benchmark – programmes in mature markets

Loyalty schemes Those operating in markets such as the United Arab Emirates are far more advanced than the apps used in Poland. They make greater use of gamification elements, feature a participation status system and offer lifestyle rewards. The average monthly household income in developing economies differs significantly from that of citizens in Western Europe, the United States or the Middle East. This is most likely the reason why loyalty apps operating in Poland are primarily functional in nature. They offer discounts and reductions that help to reduce expenditure on essential products.

i360 It manages a range of loyalty schemes. Furthermore, we continuously monitor all solutions currently available on the Polish market and selected foreign markets, including in the food retail sector. We are happy to share our findings with our blog readers and clients.

If you are interested in implementing a loyalty scheme or seeking advice on solutions that could improve its operation, logistics, legal and tax aspects, or simply boost its effectiveness, please do not hesitate to contact us.