Over tha past few years, various crises have shaken the world to its core. During the pandemic fashion, apparel & luxury retailers were in a tough spot, trying to maintain contact with their loyal customers while other industries, like grocery retail and food & beverage, saw a spike in demand. However, the economic downturn may flip the tables once again, as food prices are soaring, and customers become more price-conscious with their food & beverage spending. As either a grocery retailer or a business specializing in food & beverages, you are probably doing your best to adapt to the new situation. A food and beverage loyalty program is one way to continue engaging with customers both old and new, but where can you start? Which features will help you stand out? What are the best examples on the market right now? This guide aims to answer all of these questions, showing you how next-gen food loyalty program can help move any of your business KPIs.
Key Takeaways – TL; DR
- Make grocery loyalty programs work everywhere seamlessly: online, in-store, and through apps.
- Add health-focused perks and easy access so all shoppers can benefit.
- Choose between Mobile Passes and supermarket loyalty apps, introduce experiential benefits, and clever partner rewards.
- Learn from the 6 best grocery store loyalty programs, including Tesco, Waitrose and Target.
Table of Contents
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What Are Supermarket & Grocery Store Loyalty Programs?
Loyalty programs for supermarket chains or online grocery retailers are fundamentally different from what you have come to expect in other industries. Today’s grocery loyalty programs are evolving into full-fledged brand engagement platforms. Shoppers now expect value-added perks like free delivery, member-exclusive items, or curated experiences. Remarkably, grocery store loyalty programs are among the few verticals where consumers willingly pay for premium tiers.
To design the best grocery loyalty programs, keep these in mind:
- Personalization: Empower members to choose their rewards: healthy snacks, baby essentials, or seasonal exclusives.
- Progression: Build tier systems that motivate frequency and build anticipation, actively making customers want to participate and stay within your system.
- Omnichannel fluidity: Ensure seamless redemption across online delivery, in-store checkouts, and curbside pickup.
Launching a loyalty program can help to win back your customers through value added benefits and, where relevant, meal discounts. The real power will come over time building up your customer data to understand who your most loyal and frequent visitors are, ensuring you can communicate to them and offer value-added services should there be further disruption in 2022.
The Biggest Challenges for Supermarket & Grocery Store Loyalty Programs in Terms of Customer Retention?
Grocery is a high-volume, low-margin sector, characterized by small yet frequent purchases and cutthroat competition. Interestingly enough, frequent purchases create engagement but rarely deep loyalty, meaning many supermarket loyalty programs suffer from transactional fatigue, when customers only chase deals. The perfect way to overcome these not-so-perfect circumstances: introducing a supermarket membership or a grocery loyalty program.
However, there are four major roadblocks to overcome at the very beginning:
- Channel fragmentation and blind spots on your data map: Inconsistent tracking between in-app, POS, and third-party purchases undermines data clarity.
- Emotional disconnect and strong financial drive: Without meaningfully differentiated tiers or brand-aligned rewards, loyalty stagnates.
- Digital inclusion, or lack thereof: ITV’s recent report revealed how millions are excluded from grocery store rewards programs due to tech barriers. Not only signaling missed growth opportunities, but reputational risks as well.
- Public health directive: With supermarkets, online grocery retailers, and manufacturers all facing government scrutiny, and massive pressure to nudge healthier habits (recently in the UK), it’s imperative for loyalty programs to also take a “healthier” directive.
Health-focused loyalty program strategy ideas:
– Short-term promotions on healthy brands with measurable LTV impact
– Point giveaway for reviewing healthy alternatives of customers’ favorite snacks
– In-app gamification: “Buy & Share a Healthy Meal” for extra points
– Introducing a Health Club for loyal customers – with exclusive perks, and in-person events
– Family-friendly treasure hunts rewarding in-store visits
– Collaborations with fitness partners and lifestyle influencers to amplify brand perception
Top 6 Loyalty Program Features for Supermarket & Grocery Store Loyalty Programs
The best grocery store loyalty programs all have one thing in common: flexible and scalable technology powering them. These upcoming features are no longer “nice-to-haves”, but absolutely essential for customer retention.
1. Digital and Physical Identification
Let’s face it: not every customer wants to use an app, and not everyone carries a physical card. So give them options. Think of this as meeting your shoppers where they are. Basically, you ensure no one feels excluded from your grocery loyalty program.
Physical loyalty cards
An oldie but a goodie, still a valuable asset in terms of grocery store reward programs. It’s a tried-and-tested feature that customers are familiar with, and some still prefer over digital passes. Analyze your customers’ habits and make a data-based decision on whether to keep your plastic card around.
Mobile Passes as digital loyalty cards
Mobile passes are digital loyalty cards that are stored in the Wallet Application on iPhone and Android. You can issue both digital loyalty cards and coupons as separate passes in the wallet. Customer can even receive their passes via email, so it’s easy to add them to the wallet application and start using them right away.
- They don’t take up extra space in handbags, pockets, or wallets.
- They are easy to scan, greatly reducing human error.
- Mobile passes can be updated with real-time offers and showcase accurate, up-to-date point balances.
2. Customer Loyalty Apps with App-Exclusive Perks & Referrals
Taking the Wallet option a step further, many supermarkets and grocery stores introduce loyalty apps. The reason why they offer their own loyalty apps is easy to figure out: loyalty apps basically work as data hubs for both the customer and the company.
- Centralized access: Apps house digital IDs, point balances, reward catalogs, and personalized offers in one seamless interface.
- Behavioral insights: Every tap, scan, and purchase provides real-time data to refine your loyalty strategy.
- Engagement driver: From daily check-ins to gamified rewards, apps create habitual engagement that keeps your brand top-of-mind.
Plus, this is where the fun comes in with app-exclusive Perks and Referrals. These features keep your program lively, visible, and talked about—a great combo for acquisition and retention:
- Add daily log-in rewards or streak bonuses to keep people engaged.
- Include mini-games like scratch cards or spin-the-wheel with points or free items as prizes.
- Offer rewards for customer who review the healthy alternative of their favorite snacks.
- Encourage social sharing by giving points for meal prep post, or food delivery unboxing UGC content.
3. Omnichannel Connectivity
Your customers might browse deals in the app, shop online for delivery, and then pop into the store for a forgotten item. Your grocery store loyalty program should follow them seamlessly. Think of this as building a loyalty safety net—no matter how your customers shop, they stay in your ecosystem. Here’s how to connect the dots:
- Integrate POS and eComm data so customers earn points everywhere.
- Add receipt upload for purchases made through third-party services—a simple way to catch otherwise-lost data.
- Most importantly, ensure rewards and tier progress are updated in real time, so customers don’t have to guess if they’re eligible for perks.
4. Smart Points Economy
You don’t need a complicated system to drive behavior. But you do need to make points feel valuable and attainable, moreover, personal. If a customer feels they’re working toward something meaningful, they’ll keep coming back. This is how to do it:
- Set tiered earn rates that align with your goals. Want to promote healthy eating or private-label? Reward those behaviors more.
- Throw in unexpected rewards, like surprise points for checking out during off-peak hours at the supermarket.
- Use expiration dates strategically to bring back lapsed customers. A gentle reminder that points are expiring soon can nudge them back to purchase.
5. Experiential Partner Rewards & Inspirational Loyalty Tiers
This is where you differentiate from the crowd. Shoppers love feeling special, and experiential perks can be your secret sauce. Even in sectors that are usually financially benefits-driven, such as grocery stores. Experiences build emotional equity. They give customers a reason to talk about your brand beyond price.
- Think beyond discounts. Offer cooking workshops, invite-only influencer events, or celebrity chef dinners.
- Use tiers not just as spend milestones but as storytelling layers. “Silver members get priority delivery. Gold members get seasonal gift boxes.”
- You can even tailor perks around lifestyle themes—eco-living, family nutrition, gourmet foodies, etc.
6. Offer Management & Limited-Access Clubs
Finally, give your marketing team the tools to stay agile. With the right flexibility and loyalty features, your program will be able to quickly adapt to rising changes in customer behavior, instead of feeling like a leftover legacy from the 20th century. Working to meet long-term KPIs while showing agility and adaptability is the key to success.
- Run short-term double-points campaigns for high-margin items, healthy alternatives, or seasonal goods.
- Create VIP clubs for niche shopper tribes: a health club, a local food club, or even a wine lovers circle.
- Use these clubs to create a sense of exclusivity. Limited access often drives demand, and loyalty status can be the key to entry.
With exclusive grocery store health clubs, you can fulfill specific business goals for a well-defined customer group. The entry requirements can be anything from surpassing a spend threshold, to completing non-purchase related actions, or spending points to buy entry.
6 Best Grocery Store Loyalty Programs Examples for Inspiration
1. Lidl Plus
3 highlights from the Lidl Plus loyalty program: Europe, app-based, personalization.
Operating over 12,350 stores worldwide, across 31 countries, Lidl is definitely one of the largest grocery retailers in Europe. A shining knight for digital innovation, the company introduced its widely popular, app-exclusive loyalty program Lidl Plus in 2018. While it’s not an earn-and-burn scheme, program members get to enjoy several nice-to-have services like EV charging, meal receipts, and shopping lists. It also comes with many truly valuable practical benefits, including:
- Member-price offers, Weekly offers, Coupons for specific products, and product categories, Coupon Plus challenges to unlock extra coupons.
- Fully digital Lidl Plus Card and Lidl Pay service, digital receipts.
- Partner offers (freely available in the app), like £65 off Jet2holidays bookings, £50 off at Parkdean Resorts, free 90-day tastecard trial.
Why it works:
- Offering a fully digital loyalty program fits perfectly into today’s customer journey.
- Frequent app visits are achieved through challenges, scratchcards, and limited-time offers.
- Encouraged data sharing through the “About me” survey section (featuring Household, Grocery, and Lifestyle topics), while letting customers know the goal is to provide more personal offers to them.
2. Tesco Clubcard
3 highlights from the Tesco Clubcard loyalty program: Europe / UK / Asia, points for purchase, digital & physical card.
Multinational grocery and general merchandise retailer Tesco has over 7000 shops worldwide. The brand launched its iconic Tesco Clubcard loyalty program in 1995, making it one of the most successful and long-running loyalty programs in the grocery sector. Keeping it fresh as a daisy while not forgetting about members from older generations, the program continues to evolve:
- Customers get to choose between digital and physical loyalty cards.
- Besides members-only prices, customers also receive points with purchases, which they can turn into vouchers (150 points = £1,5).
- Clubcard points can also be spent at partners, such as Virgin Atlantic’s Flying Club.
Why it works:
- Keeping your physical loyalty card (if warranted) ensures elderly customers that they’re still an important part of your world.
- Offering points for purchases guarantees the continued financial value in customers’ eyes.
- Customers get to enjoy 2x the value of their Clubcard vouchers with partners, making those rewards truly stand out.
3. Kroger Plus Loyalty Program
3 highlights from the Kroger Plus loyalty program: US, free + paid membership, fuel rewards.
Kroger operates over 2,700 stores across 35 states US. The brand’s Kroger Plus loyalty program (originally introduced in 2003) has become a staple for US households in the past 20 years. The program is a straightforward, free-to-access system that gives members savings on groceries and discounts on fuel. Shoppers can sign up online or in-store and use a physical card or app at checkout.
- Members earn 1 fuel point per $1 spent on groceries.
- Redeem 100 points for 10¢ off per gallon at Kroger Fuel Centers or Shell.
- Receive weekly personalized coupons and digital-only deals through the app.
Kroger Boost, a premium membership launched in 2022, offers free delivery, 2x fuel points, and a yearly subscription to Disney+, Hulu, or ESPN+. It’s a practical example of how grocery chains can mix basic savings with experiential rewards and convenience to grow both loyalty and revenue.
Why it works:
- Fuel savings are simple, frequent, and highly motivating for most customers.
- Digital integration with coupons and receipts makes it easy to stay active.
- Boost’s streaming and delivery perks tap into everyday habits, beyond the grocery aisle.
4. myWaitrose Membership Program
3 highlights from the myWaitrose loyalty program: UK, lifestyle perks, competitions.
With 329 shops across Great Britain and the Channel Islands, Waitrose & Partners is one of our smaller retailers on our list, yet its free-to-join myWaitrose membership program is just as significant. It offers not only members-only vouchers and discounts but also lifestyle perks and experiential rewards. Loyalty members get to enjoy:
- Special daily discounts, ScanPayGo service access, special Uber Eats offers, and free hot drinks without making a purchase.
- Exciting competitions for valuable prizes, like a seven-night skiing trip to Switzerland.
- Cashback on eligible healthy products for Vitality customers.
Why it works:
- Tailored weekly vouchers feel more useful than generic discounts.
- High-value competitions and wellness perks (like Vitality cashback) broaden appeal beyond price.
- Low-friction in-store tech makes the program easy to use without extra steps.
5. Target Circle
3 highlights from the Target Circle loyalty program: US, free + paid membership, card benefits.
While not strictly a supermarket, Target is a staple for US customers for many reasons, including shopping for groceries. Introduced in 2019, Target’s Circle loyalty program elevates the customer experience both online and in-store across all 1,981 stores in the United States. The program is available in multiple formats, with many different perks:
- Members of the free Circle program get to enjoy deals and personalized bonuses, plus partner rewards at brands like Ulta Beauty.
- Members of the paid Circle 360 membership program ($10.99/month) get access to: no rush returns (30-day window), monthly freebies, free shipping / same-day deliveries for qualifying purchases.
- Customers also get to apply for Target Circle™ Cards (credit, debit, reloadable) for extra benefits.
Why it works:
- Offering a freemium loyalty program gives loyalty members the freedom to choose whether extra comfort is worth paying extra money for.
- Providing branded card options is a hygiene factor for many US customers.
- Putting online shopping-related perks behind a paywall is a great way to incentivize membership signup for today’s instant gratification-hungry audience.
6. Amazon Prime Membership at Whole Foods Market
3 highlights from the Prime x Whole Foods loyalty program: US / Canada / UK, delivery-based perks, mobile pass.
As part of Amazon’s worldwide grocery stores (after the retail giant acquired the company in 2017), Whole Foods Market currently operates 500 stores across the United States, Canada, and the United Kingdom. One result of these brands joining forces is an attractive grocery discount exclusively for members of the Amazon Prime loyalty program.
- Customers get 5% off all purchases when they use the Amazon Prime Rewards Visa Signature Card, plus 10% off sales prices.
- They can take advantage of 2-hour delivery in selected cities.
- Amazon Prime’s free 30-day trial allows everyone to taste the benefits without any commitment.
Why it works:
- Free or high-speed delivery is a fan-favorite reward type.
- Utilizing an extended partnership adds a lot of value to any loyalty program.
- Mobile passes are the gateway towards engaging with a mobile-loving generation.
Final Words Before Starting the Preparation
Planning to launch a grocery or supermarket loyalty program to keep your hard-earned customers? There’s one thing to keep in mind: no two programs are alike. The end result should not only reflect your brand values, but also cater to the needs of your audience. So don’t rush the planning phase, and always look for the best solutions.
Ready to see how Antavo’s AI Loyalty Cloud can supercharge your loyalty program? Book a demo with our experts and see our platform’s capabilities in real time!
And don’t forget to download Antavo’s Customer Loyalty Report, an in-depth report that showcases dozens of statistics as well as future industry trends to help you navigate the world of next-gen loyalty programs.
