Most distributors have had loyalty programs for many years.
But that of Lidl France was still waiting in the drawers.
“We didn't want to launch it because we didn't feel the need
,” explains Michel Biéro, purchasing director at Lidl.
But in October 2021, at the end of the Covid epidemic, at a time when the purchasing power of the French was being abused, we thought it was time.
We did not imagine that the war in Ukraine would occur and the consequences it had on prices
.
»
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Lidl was not mistaken.
Its loyalty program, which offers benefits and discounts like those of all its competitors, has already won 5 million customers since October.
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“We are rather happy”
, confirms Michel Biéro.
Their basket is 50% higher than that of the average Lidl customer.
And it is this new loyalty program that served as support for the promotion announced in mid-May with great communication support (5% discount for cardholders), with the aim of supporting purchasing power. at a time when all its competitors are competing for promotional offers.
This 5% discount has contributed to increasing the flow of new members of the Lidl loyalty offer.
“We have won several hundred thousand inserts
, welcomes Michel Biéro.
We have never hidden it, this promotion is also a way to recruit loyal customers.
A quarter of cardholders had activated the promotion at the end of May.
Market share gain
The brand has continuously gained market share in recent years.
It attracts around half a million additional customers each month, according to Kantar.
The challenge for her is to retain these customers recently won over to her concept.
Like its German competitor Aldi, Lidl offers almost only own-brand products, out of a small number of references (1,700).
It is on average 5% to 6% cheaper than its competitors, and even
"25% cheaper than national brands"
, assures the manager.
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In times of inflation, the argument pays off.
“Our market share gains are accelerating
, notes the distributor.
Customers who were shopping in hypermarkets test our offer
.
In
the first quarter, the brand entered the top 10 of the most visited e-commerce sites and applications, even though it does very little e-commerce.
Customers come to consult its catalogues.
The massive advertising investments made by the brand - the leading advertiser in its sector - also contribute to its success.
Contrary to popular belief, our customers do not consume less fresh produce
Michel Biero
Lidl is not spared from rising prices, however.
Its labels have already increased by 2.8%.
The distributor anticipates 5% inflation this summer, and “certainly” 7% at the end of the year, more or less like its competitors.
For now, the 5% discount is enough to offset the price hike, Lidl points out.
Its customers are no less consuming differently since inflation entered their daily lives.
“
Contrary to what we hear, our customers do not consume less fresh produce
,” explains Michel Biéro.
Last month, we became the top sellers of fresh produce in France by volume, ahead of Leclerc.
On the other hand, they reduce their non-food expenditure.”
