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The loyalty card battle continues: Goody expands, Mitre 10 drops Fly Buys

  • News
  • October 17, 2016
  • Elly Strang
The loyalty card battle continues: Goody expands, Mitre 10 drops Fly Buys
The Goody card.

Mitre 10 general manager of marketing Dave Elliott says the home improvement retailer will withdraw from Fly Buys early next month.

This follows its announcement last month to join Air New Zealand’s Airpoints system.

“We have greatly valued our long term association with Fly Buys, and our customers who are Fly Buys members can continue to earn Fly Buys points on their purchases at all Mitre 10 and Mitre 10 Mega stores throughout the country right up until our change-over to the new programme on 1 November 2016,” Elliott says.

“At that point we move exclusively to our partnership with Airpoints.”

He said customers would be notified directly over the coming weeks about the changes.

The loss is another blow to Fly Buys, which lost Air New Zealand as a partner last month.

The airline announced in September it was pulling out of Fly Buys to focus on its own programme, Airpoints, which has 2.2 million members.

At the time of the split, Air New Zealand’s new-found partnership with Mitre 10 was announced.

Fly Buys used to be the largest loyalty programme in New Zealand, with around 2.5 million members.

However, AA Smartfuel and Countdown’s recent loyalty card collaboration boasts 3.5 million members, surpassing Fly Buys’ claim to the title.

But despite the loss of the Mitre 10 and Air New Zealand, Fly Buys was voted the best loyalty programme in New Zealand in a Horizonpoll, with almost a third preferring it (29 percent).

Meanwhile, Goody Card, the smartphone based customer loyalty programme, has raised $750,000 in a recent capital raise.

Some of the capital will be spent on developing the Goody platform further to increase its customer base.

Goody Card founder Gorran Marusich says it’s aiming to have one million customers using its card by October 2017.

Currently, it has 400,000 members signed up and a 730-strong network of New Zealand merchants, including McDonald’s McCafe chain.

“The capital raise is a positive move both for the future of Goody Card and for our business clients and members,” Marusich says.

“It will help us keep growing, meaning we can make the service available to even more people. We are committed to becoming a market leader in cloud-based customer loyalty.”

 Goody works by replacing traditional in-store loyalty programmes.

Businesses are provided with their own branded tablet and customers can use it by either download the free Goody app or using a physical loyalty card to scan on the tablet.

Retailers track how often customers come in and offer them customised rewards for repeat business.

Founder of The Retail Collective Juanita Neville-Te Rito told The Register last week all these movements in the loyalty space come down to one thing: customer data.

She said a bigger customer pool means more data can be extracted.

“The power of the data is the ultimate hand these guys all want a part of,” Te Rito says.

“In theory, monetisation of the data is more powerful than the actual reward and recognition power of a programme, but this is a space few have really got their heads around yet.”

She said in order for a retailer’s loyalty programme to be both popular and effective, there were several key qualities it has to include.

“True personalisation, monitoring of spending to tailor the shopping experience better for me, authenticity of reward (on my terms not yours), not too many emails and less push marketing and more pull,” she said.

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