IGA Australia is shaking up the supermarket scene with a new rewards program designed to give customers “real rewards, plain and simple” without any complicated rules.
The independent supermarket chain is introducing IGA Rewards Cash Back, which allows shoppers to earn IGA Cash Back when they purchase participating items.
The more customers shop, the more personalised cash back deals they will receive each week.
The retailer has described this as a “new and improved loyalty program designed to shake up the way you shop, with shoppers earning IGA Cash Back they can actually use – because locals deserve more than just points”.
Once a shopper has earned $20 in IGA Cash, they can unlock a digital Visa IGA rewards card to spend on eligible items during their next shop, at participating retailers.
Tobacco, lottery products, stamps and gift cards are excluded.
Money expert Joel Gibson told 9Honey Money, that their new rewards program is a “smart move from IGA”.
“It gives them a point of difference. Coles and Woolies are known for reward points, Aldi’s known for low prices, copycat brands and quirky middle-aisle specials, and now IGA will be known for localism and cashback.”
He added that: “In a cost-of-living crisis, rewarding people with real money rather than shiny tokens shows they understand how hard it is now for some households to make ends meet.”
He noted that the only limitation is that cashback can only be spent at IGA, but added, “given groceries are a weekly expense I don’t see that being a deal-breaker for shoppers.”
IGA’s move comes as Cashrewards announces it will cease operations this week. The retailer also cites the ALA Annual Loyalty Insights Report 2024, which found 65 per cent of Australian shoppers prefer cash back over points.
The report also showed that 74 per cent of customers now consider more than one brand when shopping, though 67 per cent still weigh their loyalty program brands in purchase decisions.
Coles and Woolworths continue to operate point-based loyalty programs via FlyBuys and EveryDay Rewards, offering customers $10 off their shop once they reach 2,000 points.
Gavin Northey, Associate Professor at Griffith University, told 9Honey Money, loyalty programs “don’t appear to motivate consumer loyalty the way they used to” because “consumers might subscribe to a whole range of competing programs.”
He added that younger generations exhibit far less loyalty and are willing to shop around to get the best deal.
“Given Australia is facing a cost-of-living crisis, and young people are shouldering that load more than older generations, then it makes perfect sense.”
To celebrate the launch of IGA Rewards Cash Back, Ashcroft’s IGA Erskine Park will host a massive giveaway with their IGA Rewards $100k Local Pay Day on Thursday, September 18.
Locals can take part by downloading the IGA Rewards app, linking their existing IGA Rewards card, or signing up ahead of time via the website.
Image: Catrina Haze / Shutterstock.com
