COLES has revamped its flybuys loyalty program, saying it could save families hundreds of dollars a year.
Millions of shoppers will get rewards or cash discounts faster, and with no expiry date, as the supermarket giant tries to snatch market share from Woolworths, the Herald Sun reports.
In a world-first dubbed my5, cardholders can also lock in discounts on five handpicked favourite products for at least the next six months when their grocery bill is more than $50.
Coles estimates a typical family will save about $200 a year on standard grocery shopping, or more than $400 a year combining bonus points from partners, a linked credit card and Coles insurance.
Managing director Ian McLeod said loyalty schemes had "lost a bit of their lustre" and flybuys was now a "compelling" offer.
Card holders would earn at least one point per dollar spent, giving them at least 50 per cent better value.
The reforms, from Monday, follow criticism from members who have taken years to redeem meagre vouchers or small items such as toasters.
New partners include Telstra Pre-Paid, AGL and Webjet. Earlier negotiations with Virgin were abandoned.
The changes drew a mixed response from shoppers yesterday.
The loyalty battle will be backed by one of the biggest mailouts in history, with 16 million new cards sent to households.
Flybuys has 10 million card holders, but active membership is down to five million.
Consumer watchdog Choice's spokeswoman Ingrid Just said customers should avoid shopping purely for rewards, and continue to search for best value.
"Any reward program is designed to get you continually back to their store," Ms Just said.KEY FLYBUYS CHANGES
- Base offer is one point for every dollar spent. Before, shoppers got two points per $5 spent, so $50 earned 20 points worth 16c. Now, $50 earns 50 points worth 25; 2000 points is worth $10.
- Points don't expire when you earn or redeem at least once a year.
- New My5 scheme gives shoppers 10% off five products of their choice from a nominated list, until at least October 31.
- Easily convert points online for instant discounts at Coles, Kmart and Target checkouts.
- Extra points earned through Coles Mastercard and NAB flybuys card.
- New partners are Telstra Pre-Paid, AGL and Webjet. Redeem points for any flight or airline through Webjet.
- Existing points are transferred over.
- New cards to be activated at flybuys.com.au/activate from Monday