Breaking Loyalty: Exploring the Controversial Tactics of Metro and IGA’s Pricing Strategies

2023-06-18 05:10:50

Metro just launched ME. Scène+ entered the Quebec IGAs in March. More determined than ever, the brands are offering prices on certain items for members and… non-members. With programs that aim to keep customers “captive,” it would be more beneficial in these inflationary times to praise infidelity, say experts consulted.




A pint of blueberries displayed at $3.99, for members of the MOI program. Consumers who don’t have their card have to pay an extra $1 to buy the small blue fruits, we might see recently in the Metro flyer. Same phenomenon at IGA, where the watermelon cost $4.99 for members of Scene +, once morest $5.99 for those who do not participate in the program. Offers of the kind, there were several in the circulars of the two signs which fight to attract customers in their stores.


PHOTO ROBERT SKINNER, THE PRESS

Scène+ entered the Quebec IGAs in March.

“We are going to see more and more techniques and means by which the big chains will try to make their customers more captive, observes Christian Désîlets, professor of at Laval University. In the food market in Quebec, this is the first time I’ve seen this,” he adds, referring to the lower prices reserved for members.

If the objective is obviously to convince more consumers to have their points card in their pocket, the method is questionable to say the least, believes Caroline Tremblay, director of human resources and operations at Milesopedia, an information and references on the various loyalty programs. “It’s a bit like joining under duress,” she illustrates.


PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS

IGA and Metro are fighting to attract customers to their stores.

The prices reserved for consumers who do not have a membership card are still very attractive, defends Alain Tadros, vice-president of marketing at Metro, interviewed on the occasion of the launch of MOI. “Our banners must be competitive,” he stresses. The food and pharmacy market is competitive. We fight to have customers, to keep our customers. The non-member price must be a competitive price. »

“The idea is to be as aggressive as we were before, but to arrive with an additional tool…”


PHOTO ROBERT SKINNER, THE PRESS

More determined than ever, the brands are offering prices on certain items for members and… non-members.

Only buy products on sale

Despite everything, Christian Désîlets persists and signs: the consumer will gain on the exchange if he shops left and right, according to the discounts of the week, instead of shopping in a single sign. ” In context [actuel], it is appropriate to praise infidelity. It is always a mistake to concentrate purchases from the same merchants, especially in the world of food where the market is controlled by only a few players. »


PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS

Consumers will benefit from this if they shop left and right, says Christian Désîlets, professor of at Université Laval.

“Let consumers shop and shop,” he advises. That they only buy the specials. This is what hurts the grocery stores the most. And that’s the behavior that loyalty cards are trying to break, because it’s a behavior that benefits the consumer too much, from a business perspective. »


PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS

Metro has a new loyalty program – Program Moi chez Metro

His suggestion: “Take all the loyalty cards from all the companies and keep shopping as much as possible. It’s the best thing to do. »


PHOTO ROBERT SKINNER, THE PRESS

“Whatever our favorite business, you have to go elsewhere,” says Caroline Tremblay, director of human resources and operations at Milesopedia.

A principle that Caroline Tremblay also shares. “Whatever our favorite business, you have to go elsewhere. You can also do a double hit by accumulating points on the various loyalty cards and combine with a credit card which has a faster accumulation in groceries. You can browse everywhere. »

Despite everything, the brands claim that consumers benefit from joining their program. Metro, which has just launched its program, replacing Metro & Me, assures that MOI is “definitely more advantageous” than its predecessor.

For what ? “We made it evolve, replies Alain Tadros. We have the ambition to become the largest loyalty program in Quebec. The new program is present in some 900 stores under the Metro, Jean Coutu, Brunet, Première Moisson and Super C banners.

“How you accumulate is the most important thing,” adds Tadros. For every dollar spent, the customer gets 1 point. »


PHOTO ROBERT SKINNER, THE PRESS

Through the Scène+ program, consumers can earn points when they shop in IGA supermarkets in Quebec and New Brunswick, at Rachelle Béry, in Les Marchés Tradition and online on Voilà par IGA.

“In addition to having access to several choices, consumers can now earn points when they shop at IGA supermarkets in Quebec and New Brunswick, at Rachelle Béry, in Les Marchés Tradition and online at Voilà par IGA, and then use them for their purchases at the grocery store,” said Carl Pichette, vice-president of marketing in Quebec, in March, when Scène+ arrived in the province’s IGAs.

At the supermarket, 1,000 Scene+ points allow you to deduct $10 from your grocery bill. At Metro, 500 points save $4. Now it’s up to consumers to decide if they stay in an exclusive purchasing relationship or if they allow themselves to go out of their way…

Some rewards programs


PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS

The MOI program allows you to accumulate points at Metro, Jean Coutu, Super C, Première Moisson and Brunet.

  • ME (Metro, Jean Coutu, Super C, Premiere Moisson, Brunet)
  • Scene+ (IGA, Cineplex)
  • Inspire (SAQ)
  • PC Optimum (Maxi, Provigo, Pharmaprix)
  • Petro Points (Petro-Canada)

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#Rewards #programs #praise #infidelity

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