Supermarket PX Mart had a large membership card base but customers rarely used their cards. Its goal was to drive more store visits and generate more revenue through its card program.
Taiwan has the highest membership card circulation in the world – an average 18 cards per person, with some 380 million issued each year.
PX Mart, which had become the leading supermarket chain through its low prices, sought to drive use of the PX Mart Card to increase revenue.
Consumers had lost interest in the card – as with many others that offered points schemes that gave no value. They knew that PX Mart’s prices were 15-20 per cent lower than rivals, but even the 0.3 per cent cash back offer did not spark their interest.
PX Mart hit on a strategy to grab consumers emotionally by pitching the card as an “upgraded savings card”, providing an extra saving over existing discounts.
Even though these savings were small, they connected with the audience, which already appreciated PX Mart as an honest, value-for-money brand.
The strategy also enabled the card to differentiate itself from the “points and prizes” approach of rival cards.
PX Mart posted strong sales growth in 2010, well ahead of category growth. Market share increased and it now has almost twice the share of the next largest supermarket brand.
Card membership grew by two-thirds and membership spending accounted for the vast bulk of sales.