Woolworths reviewing partnership with Qantas Frequent Flyer.

[yohy?!]

You make a compelling point amaroo. As I indicated earlier today, despite people jumping up and down about the changes, the fact is this is a smart, carefully considered, business decision for Woolworths.

smart and carefully considered remains to be seen - it definitely saves them some cash when they need it as their sales collapse.

they must be confident that alienating the 4.5 million linked QFFs is not going to hurt profits greater than that 80mil - i think they may be relying too much on those tangible figures without accounting for the value to the brand from being associated with QF and the 'pull' that issuing points provides.

 

[JessicaTam]

<snip> Some saying it will be the undoing of Woolowrths. Well, lets look at the evidence. With a few exceptions (eg radiogirl) most of this board has spent the last few years universally panning flybuys. And yet, Coles are snacking on Woolworths lunch at the moment. AFFers are jumping ship to a scheme they have lambasted.

I would think more than just a few. The commentary on the FB targeted offers thread has been steadily growing over the last year or so. I know I have been posting there more often than the corresponding EDR thread.

And in other news, I received a letter from Coles today offering me $6 off $40 spend coupons for the next four weeks. I wonder if that was coincidence, or they saw the writing on the wall with EDR?

 

[Princess Fiona]

Mostly full of themselves. Let's face it, the average FF person is nothing if not vocal.

• I'm gonna take my spend where its cheaper and better = Well your a numnut for spending on expensive inferior stuff
• I am taking my loyalty to Coles - well you may have been loyal, but not to Woolworths

Some saying it will be the undoing of Woolowrths. Well, lets look at the evidence. With a few exceptions (eg radiogirl) most of this board has spent the last few years universally panning flybuys. And yet, Coles are snacking on Woolworths lunch at the moment. AFFers are jumping ship to a scheme they have lambasted.

Pretty much nobody on here would be going anywhere near Flybuys were it not for the recent tie-up with EY and status earning.
It's that coupled with the decision of Woolies to ditch QF that has AFF'ers jumping ship.
The previous iteration of Flybuys wouldn't have attracted anyone.

 

[Mattg]

Pretty much nobody on here would be going anywhere near Flybuys were it not for the recent tie-up with EY and status earning.
It's that coupled with the decision of Woolies to ditch QF that has AFF'ers jumping ship.
The previous iteration of Flybuys wouldn't have attracted anyone.

Very true. I never even bothered signing up to Flybuys until yesterday as the program was/is next to worthless. Etihad changes things a little bit, but if it wasn't for Woolies ditching Qantas points I probably would continue being loyal to Woolies (in spite of the Coles/Etihad deal).

 

[Ozgirl]

Pretty much nobody on here would be going anywhere near Flybuys were it not for the recent tie-up with EY and status earning.
It's that coupled with the decision of Woolies to ditch QF that has AFF'ers jumping ship.
The previous iteration of Flybuys wouldn't have attracted anyone.

Actually the new fly buys is pretty good!

The past year alone - with Coles not being my primary shop - I have earn $70 in pretty much cold hard cash.

I love that it is instantaneous as well.

Hmm need to buy nephew a present - oh look they sell it at target - wonder if i have any points... (log into flybuys and i do indeed, *almost* 'claim' $20 there and then. However then thought i don't have time to go to shop might fgo online, then during the check out process realise that actually Target online actually asks you for your fly buys details and checks if you have any points you can redeem for discount during the check out process.

So painless!

And note it was my choice to use them or not.

 

[Mattg]

Actually the new fly buys is pretty good!

The past year alone - with Coles not being my primary shop - I have earn $70 in pretty much cold hard cash.

I love that it is instantaneous as well.

Hmm need to buy nephew a present - oh look they sell it at target - wonder if i have any points... (log into flybuys and i do indeed, *almost* 'claim' $20 there and then. However then thought i don't have time to go to shop might fgo online, then during the check out process realise that actually Target online actually asks you for your fly buys details and checks if you have any points you can redeem for discount during the check out process.

So painless!

And note it was my choice to use them or not.

It's worth mentioning that (although nobody here would do it) QFF points can be converted to Woolies gift cards too. And the rate at which Qantas points are converted to gift cards is actually better than Flybuys (1500 points for $10, rather than 2000 points for $10).

 

[Cool Cat Phil]

I believe Flyby's have slowly but surely been courting new members, by issuing multiple & continuous bonus points offers to attract repeat custom, something EDR has failed to do in a long time.
I believe I'm obtaining at least 2 cents out of every $ in value from Flyby's presently when factoring in all the multiple offers at present ..... It's a quite compelling reason why Lady Cool Cat and I have begun "shopping around".

 

[serfty]

...
The previous iteration of Flybuys wouldn't have attracted anyone.

I have done ok out of FB the decades- and that's without any real extra effort.

We currently have over $500 worth of points - $300+ of those in the last 18 months. Not to mention the redemptions - return trip to BNE, $120 in vouchers, cordless telephone, and, yes, wait for it, an automatic toaster .

 

[Cool Cat Phil]

I have done ok out of FB the decades- and that's without any real extra effort.

We currently have over $500 worth of points - $300+ of those in the last 18 months. Not to mention the redemptions - return trip to BNE, $120 in vouchers, cordless telephone, and, yes, wait for it, an automatic toaster .

Ha .... A toaster! Love it

 

[prozac]

It's worth mentioning that (although nobody here would do it) QFF points can be converted to Woolies gift cards too. And the rate at which Qantas points are converted to gift cards is actually better than Flybuys (1500 points for $10, rather than 2000 points for $10).

Another way to keep your QFF acct active?

 

[Flying Fox]

A few more details about the change -

Woolworths loyalty program to cost $500 million a year, says Deutsche Bank

Under the new program, which scraps Qantas Frequent Flyer points in favour of food and liquor discounts, the average Woolworths Rewards member would earn a $10 reward every 7.4 weeks after spending $107 a week, according to analysis by the Australian Centre for Retail Studies at Monash Business School.

This equates to an earn rate or discount of 1.25 per cent, compared with an earn rate between 0.22 per cent and 0.42 per cent under Woolworths' existing Everyday Rewards program (assuming customers redeem their points for domestic or international Qantas flights).

Mr Simotas said the implied $500 million spend was much higher than the cost of Qantas Frequent Flyer points, which was estimated to be between $60 million and $80 million a year.
​

 

[serfty]

It's worth mentioning that (although nobody here would do it) QFF points can be converted to Woolies gift cards too. And the rate at which Qantas points are converted to gift cards is actually better than Flybuys (1500 points for $10, rather than 2000 points for $10).

Sure, but most here would value a QFF point at something more than ⅔¢ ... whereas a contemporary FB point is not worth much more than that ½¢.

This is where these changes are going to result my my bias toward WW disappearing ...

 

[Ozgirl]

It's worth mentioning that (although nobody here would do it) QFF points can be converted to Woolies gift cards too. And the rate at which Qantas points are converted to gift cards is actually better than Flybuys (1500 points for $10, rather than 2000 points for $10).

I was aware of that but is it instant?

ie you can be in target and activate the gift card for when you swap only minutes later.

 

[exceladdict]

I was aware of that but is it instant?

ie you can be in target and activate the gift card for when you swap only minutes later.

Imagine if FB to QFF redemptions became possible. Even at 0.5:1; that would cement a transition to Coles for me

 

[Mattg]

A few more details about the change -

Woolworths loyalty program to cost $500 million a year, says Deutsche Bank

Under the new program, which scraps Qantas Frequent Flyer points in favour of food and liquor discounts, the average Woolworths Rewards member would earn a $10 reward every 7.4 weeks after spending $107 a week, according to analysis by the Australian Centre for Retail Studies at Monash Business School.

This equates to an earn rate or discount of 1.25 per cent, compared with an earn rate between 0.22 per cent and 0.42 per cent under Woolworths' existing Everyday Rewards program (assuming customers redeem their points for domestic or international Qantas flights).

Mr Simotas said the implied $500 million spend was much higher than the cost of Qantas Frequent Flyer points, which was estimated to be between $60 million and $80 million a year.
​

Interesting data. But I wonder how they figured that the existing earn rate - assuming points are redeemed for flights - is only 0.22-0.42%?? I would say it's substantially higher if you know what you're doing.

 

[Mattg]

The SMH article quoted above mentions this:

"We are trying to make this very simple and very clear and something all our customers can benefit from, and customers don't need to change their shopping behaviour," Mr Banducci told Fairfax Media when the the new scheme was announced on Sunday.

Isn't changing shopping behaviour the entire point of loyalty programs??

 

[Mal]

Interesting data. But I wonder how they figured that the existing earn rate - assuming points are redeemed for flights - is only 0.22-0.42%?? I would say it's substantially higher if you know what you're doing.

"assuming customers redeem their points". One of the smallest flaws in that article. Woolworths pays for the points regardless of breakage at the QF side. Rest of article is rubbish in my opinion.

 

[Limewood]

Been shopping at Woolies for few years to get the QFF points, like Coles better and its closer so its going to be goodbye, thanks for the memories, they are making a big mistake IMO.

 

[serfty]

...

And in other news, I received a letter from Coles today offering me $6 off $40 spend coupons for the next four weeks. I wonder if that was coincidence, or they saw the writing on the wall with EDR?

We received ours last week - they are part of the annual pre-chrismas promotions - at least for the last two years we have received them around this time of the year.

 

[Dr Ralph]

The previous iteration of Flybuys wouldn't have attracted anyone.

I've been a member of Flybuy for several years. I'd estimate the value I've gotten from flybuys to be around 5 times that I've received from EDR for comparable spends.