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07-2024_Pricing-News: Same price everywhere in LEH … the Handelsblatt and the discount lie

Kostet Nutella tatsächlich überall das Gleiche? Dass Lebensmittelpreise überall bis auf den Cent identisch sind, behauptete jedenfalls das Handelsblatt – unter Bezug einer fragwürdigen Studie.

Pricing at Lidl: Discount store attracts with app as digital customer card

Lidl is currently testing digital customer cards, with which coupons can be delivered directly to the mobile phone. In Berlin and Brandenburg, customers can use the new customer loyalty app “Lidl Plus”. With this, they receive special offers and features such as discount coupons, digital receipts or the flyer ready for every purchase. It is noteworthy that the coupons are not delivered location-based, says pricing expert Hans-Christian Riekhof.

Lidl Digital Customer Card

The free app, available from the Apple and Google app stores, serves as a digital customer card. Lidl has come up with a number of “exclusive benefits” for users. For example, a 5-euro welcome coupon, new digital discount coupons for selected products and savings benefits with the so-called “Lidl Plus crackers”. Also scratch cards with further coupons and price advantages with partners, e.g. at Lidl-Photos, Lidl-Travels, FlixBus and regional, activate providers in the app.

In return, the discount giant receives valuable customer data. Lidl can thus compensate for the major disadvantage of stationary compared to online trading, where it is common to collect and evaluate customer data. Based on customer profiles created from this, the app can then make offers to the customer that Lidl assumes the customer needs at this time.

With the customer data, Lidl sends suitable offers to the app users

According to Lidl, customers do not see different prices based on their data. However, there is indeed a price difference in favor of the app users – compared to customers who do not use the app.

With the digital customer cards, Lidl is faster than e.g. Aldi, the main rival, says Hans Christian Riekhof. The pricing expert finds it interesting that the app is advertised on various local channels – here the example Out Of Home. Even more noteworthy is that the coupons are not delivered location-based. “You could also deliver the push notifications in front of the store, in the store and maybe even directly on the shelf. This would significantly increase the relevance – measured by opening and redemption rates – according to our project experience. Maybe this will come in the second expansion stage”, says Riekhof.

Which campaigns promise particular success can be read in the News from locandis.

By the way, the project of the digital customer card, which is currently running in around 250 Lidl markets in the pilot area Berlin and Brandenburg, is planned to be extended to all of Germany during the year 2020.

Note:
Also read our empirical Study on Digital Customer Cards in retail, system catering and tourism (Riekhof/Brinkhoff 2018).

Further links:

Lidl:
https://unternehmen.lidl.de/pressreleases/190612_lidl-plus

Advertising and Selling:
https://www.wuv.de/marketing/lidl_bringt_digitale_kundenkarte_als_app


Photo at the top: Lidl Germany
Photo: UNICconsult Strategy Development GmbH