Learning from backlash faced by Woolworths over subscription

2^nd June, 2023

One unpopular move can result in a huge discontentment among the members of a loyalty initiative. This is clearly happening with Woolworths after the supermarket chain came up with major changes to its Everyday Extras program, from July onwards.

Everyday Extra from Everyday Rewards is a subscription service designed to save extra on everyday shopping. This subscription is linked to the Everyday Rewards membership.

Coverage of unhappy members is all over. It is being reported that members are “threatening to cancel their subscriptions and boycott the supermarket”. As per the information available, the subscription fee currently priced at $59 a year will be hiked up to $70 annually. Also, displeasure is being expressed over discount to be offered for in-store purchases and removed from online purchases.

For the merchant, which has brought about changes after one year of this program, it could be the case of cost of running the program not being feasible or failing to cover cost of benefits redeemed.

This also underlines the fact that once members are highly used to certain features and benefits, any amendment needs to be well-planned. It is better to explain why changes are being made, clearly stipulate the plan post the launch and gain an initial reaction before acting on it. Also, how are initiatives like paid loyalty and subscription being perceived by an audience, more specifically in a particular product or service category? Where is the potential gap in perceived value? What are the chances members won’t be happy?

There is another aspect that must be dwelled into, looking at what has happened with Woolworths’s new initiative. How to rebuild trust? What sort of changes need to be made, if any, considering why members aren’t happy and the reasons they are giving, especially considering their daily routine, their expectations and most importantly, how this program has become part of their lives.

Keen on learning about how to gear up for subscription and paid loyalty initiatives?

Hear from our panel of experts at the upcoming webinar on 8th June: