Aisles of Opportunity: How Safeway Boosted Loyalty and Revenue Share
The Challenge
Facing economic challenges and Big Box competitors, Safeway aimed to stand out by shifting from costly print media to a personalized, one-to-one approach—boosting customer frequency, recency, and spend while capturing a bigger share of the basket.
The Strategy
The strategy focused on three key tactics: analyzing customer shopping behavior, segmenting audiences for tailored offers, and launching a first-of-its-kind personalized loyalty program.
The Solution
We launched Just 4 U, a groundbreaking loyalty program and app that rewarded over 15 million customers with fully personalized offers. Using algorithms to analyze shopping behavior—like aisles browsed, 40,000+ SKUs, and 50+ key attributes—digital discounts were tailored to each shopper. This innovation also unlocked a first-of-its-kind opportunity for CPGs to hyper-target ideal consumers with relevant content.
The Results
Safeway’s loyalty program grew to over 25 million active weekly customers, delivering $100+ million in print savings. The top two segments now average 97 visits per year, with increased spend and frequency across key groups. The Just for U app ranks #42 among all shopping apps.
There is a much greater propensity for people who have downloaded the app to become regular [loyalty] users. Shoppers who downloaded Safeway’s shopping app were 30% more likely to become regular loyalty users, or users who shop often and spend heavily, and spend between 40% and 50 more than other consumers. The effect of Just for U is to cause people to come to the store more often and to buy more when they’re there. This loyalty program gives them an opportunity to consolidate more business with us.
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