ALBERTSONS COMPANY INC CLASS A

Customer Loyalty and Engagement Strategies

• Loyalty Program Integration

  • The loyalty program is integrated into the mobile app, serving as a primary engagement tool.
  • As of April 2024, a revamped program facilitates easier point earning and redemption (coupons, fuel, and grocery rewards).
  • This enhancement has resulted in:
    • Increased customer engagement
    • Higher retention rates
    • Elevated customer spending

• Customer Value Proposition

  • The strategy promotes customer growth and engagement primarily through digital connections and personalized marketing.
  • Focus on adapting value propositions in response to evolving customer needs, factoring in inflationary pressures.

• Digital Platforms

  • E-commerce Growth

    • E-commerce accounts for over 7% of grocery revenue, with advancements in mobile app quality and delivery efficiency contributing to its penetration.
    • The aim is to utilize e-commerce as a significant opportunity for customer acquisition and retention.

  • Pharmacy and Health

    • Integration with mobile app via Sincerely Health, a wellness and rewards platform driving customer engagement.
    • Over 11% of total annual revenue driven by pharmacy sales, highlighting the importance of cross-shopping between grocery and pharmacy sectors.

• Customer Engagement Initiatives

  • Development of a five-star certification program ensures consistent and elevated customer service in-store.
  • Use of targeted marketing initiatives to further encourage customer loyalty and increased transaction counts.

Strategic Partnerships and Future Directions

• Future plans to leverage strategic partnerships for extending rewards for loyalty program members.
• Continuous enhancement of digital engagement through integrated platforms to increase customer lifetime value.
• The “Customers for Life” strategy emphasizes placing customers at the core of business operations, projecting to capture a larger wallet share from new and existing customers.

Financial Performance Indicators

• Speedy execution and adaptability are core to enhancing performance in a competitive landscape.
• Investments in technology and customer relationship management are seen as crucial drivers for sustaining growth, particularly amid shifting consumer behaviors and market conditions.

The iterative focus on loyalty programs and customer engagement demonstrates Albertsons' commitment to enhancing customer experience and retention in a competitive grocery landscape.