Iceland improves offers and rewards with Omnico POS deployment

Iceland has increased its customer Bonus Card reward total to £5 million this year by cutting costs through the use of a point of sale system from Omnico.

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Iceland has increased its customer Bonus Card reward total to £5 million this year by cutting costs through the use of a point of sale system from Omnico.

The Iceland Bonus Card scheme has been running for the last five years. Originally, Iceland used direct mail to distribute rewards and coupons to Bonus Card customers.

Iceland was keen to reduce the costs associated with this means of distribution and transfer the savings to customers, allowing it to reward more customers more often. Iceland was also keen to use the information it collected about shopping habits to deliver more relevant rewards and promotions.

To achieve this Iceland has been using Omnico’s engagement software and has been able to increase the value of the rewards redeemed.

Lyndsey Swann, head of customer insight at Iceland, said: “In the current economic climate many retailers are heavily discounting and using multiple promotional tools to combat tough economic trading. Omnico’s solution has allowed Iceland to maintain its position in the market and continue to grow.”

Omnico adapted its Omni-Engagement solution to Iceland’s existing IT systems and Bonus Card to enhance the scheme and drive further sales growth, said Swann.

Omni-Engagement is a software suite that helps retailers collect and analyse data quickly and efficiently to produce coupons and reward schemes that can be tightly targeted to individual customers. There is also the ability to add savings and rewards direct to the Bonus Card.

Swann said: "More of the available budget has been released thanks to a reduction in the use of direct mail, which means we can lower the threshold for coupon qualification. That means we are able to reward more customers more often.”

The return on investment of specific marketing campaigns is said to have jumped by an average of 16 percent against traditional direct mail campaigns.

And the ability to print coupons at the till has allowed Iceland to increase its annual reward payout to almost £5 million in 2013. Iceland has also been able to respond to customer feedback and has revised its WIN programme with more prizes distributed via the card.

In 2009, Iceland signed a seven year IT outsourcing deal with Dutch-based Getronics.