Bunnings New Zealand managing director Melissa Haines said the scheme had been worked on for an extended period. Photo \/ NZ Herald, Dean Purcell<\/p>\n
Bunnings\u2019 largest competitor in New Zealand, Mitre 10, has its own loyalty scheme called Mitre 10 Club.<\/p>\n
Instead of earning rewards points, members gain access to monthly deals not on offer to those without a membership.<\/p>\n
Mitre 10 Club members also gain access to a monthly \u201cScan & Win\u201d prize draw.<\/p>\n
Bunnings also launched a similar scheme earlier this year for business customers called PowerPass Pro Rewards.<\/p>\n
Haines said the scheme was partly designed in reaction to consumer behaviour, agreeing that most customers are prioritising value out of every transaction.<\/p>\n
She said the business took several years designing the scheme and experimented with multiple options.<\/p>\n
\u201cBecause there are so many different loyalty programmes in the New Zealand market, we considered all of their pros and cons, and ultimately decided that, because of that, this simplicity factor, the direct-to-customer focus was the best mechanism.\u201d<\/p>\n
Haines said the platform\u2019s simplicity allowed for possible future expansion, potentially for features like exclusive deals.<\/p>\n
Bunnings’ new loyalty scheme will reward active members for every dollar they spend, although the bonus may not be as much as you think.<\/p>\n
Consumer NZ spokesperson Jessica Walker said the group was not generally fans of loyalty schemes.<\/p>\n
\u201cThey work well for businesses \u2013 they breed a sense of loyalty in consumers, but consumers don\u2019t always reap benefits from being loyal. <\/p>\n
\u201cFor example, staying loyal to a particular business because you\u2019re part of a programme, or chasing reward points, could mean you\u2019re missing out on a better price somewhere else,\u201d Walker said.<\/p>\n
Walker said businesses use customer data to learn more about their shopping habits, keeping them within the store.<\/p>\n
\u201cWe encourage people to shop around for products. Read the small print too \u2013 find out exactly what data you\u2019re trading in return for those loyalty points.\u201d<\/p>\n
Bunnings financials<\/p>\n
Haines also gave an update on Bunnings New Zealand\u2019s performance, describing it as consistent over the last financial year.<\/p>\n
Bunnings reported its wider Australasian performance last week, confirming total sales had lifted 4.1% year-on-year to A$20.3 billion.<\/p>\n
\u201cOur sales and our ebit [earnings before interest and tax] line were growing in the same shape as the Australian business.<\/p>\n
\u201cIt was a much-improved performance, and really happy to see growth across both the consumer and the trade side of the business for the last year.\u201d<\/p>\n
Bunnings New Zealand\u2019s official figures, which are not made clear in the wider financials, will be published later this year.<\/p>\n