Yahoo Finance Sneaky Woolworths loyalty difference after Coles makes major change
In a cost-of-living crisis, every dollar counts and there is a slight difference to how loyalty points are rewarded between the two major supermarkets.
Woolworths has revealed a difference between the Everyday Rewards program and Coles Flybuys program after the latter changed how Flybuys points could be redeemed. Shoppers have been confused and “annoyed” after being served a new prompt at Coles checkouts to claim a $10 discount.
They changed the program in June so you can get a $10 discount as soon as you clock up 2,000 points. But a Coles spokesperson told Yahoo Finance this would impact how many points you redeem.
“When customers opt-in to take $10 off their shop, they will still collect points on the value of their shop, but after the $10 off, and any other discounts and savings are applied,” the Coles spokesperson said.
However, competitor Woolworths does things a little differently.
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New Coles checkout prompt confuses shoppers after major discount change: '$10 off'
"Shoppers will still accumulate the points on the full shop before the $10 discount," a Woolworths spokesperson told Yahoo Finance.
A Sydney mum shared a screenshot with Yahoo Finance that showed her $13.25 purchase earning $14 points after the $10 discount was applied.
Woolworths did have an automated prompt asking customers if they wanted to use a $10 discount once 2,000 points had been collected.
But Australia’s biggest supermarket decided to remove it after “significant customer feedback”.
“We have removed the automatic prompt on the self-service screen in Woolworths supermarkets and at BIG W, following significant customer feedback showing our members prefer to save their Reward dollars to use after they have accumulated a higher reward amount, as opposed to redeeming $10 each time they reach 2,000 points," an Everyday Rewards spokesperson told Yahoo.
"This allows our members to apply a larger saving to their shop when they need it most. Customers can easily redeem their rewards dollars at the checkout by selecting ‘Reward dollars’ on the payment screen.”
How can I get the best value out of my Everyday Rewards points?
So, should you use your points in the short term to take a little chunk off your grocery bill?
Angus Kidman, personal finance expert at Finder, told Yahoo Finance it may not be the best value if you're a traveller.
"You'll actually get maximum value from supermarket rewards by converting them into frequent flyer points - Qantas from Everyday Rewards or Velocity from Flybuys - rather than the $10 off offer," he said.
"For instance, 16,000 Everyday Rewards can be converted into either $80 off or 8,000 Qantas Points.
"Those 8,000 points will pay for a one-way reward flight from Sydney to Melbourne - which can easily cost $150 or more. Even when you factor in paying the carrier charges, the flight option is much better bang for buck.
“That said, if you’re definitely not planning to travel, getting the $10 off is still a welcome bargain.”
This comes at a time when Australians are looking for the best value possible as the cost of living continues to bite.
Research from Finder found grocery bills were a major financial stressor for 40 per cent of Aussies - equivalent to 3.7 million households. This figure has more than doubled over the past four years.
The average Aussie household spent $191 per week on average on groceries in April, or $9,932 per year.
“Aussies are having to fork out more than ever on everyday groceries, so it’s great to be able to enjoy some perks in return," Kidman said.
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