It’s been nearly a decade since Lidl arrived in America, and most of the country still hasn’t seen one. But as the grocery chain seeks to attract new shoppers with more new stores, it’s also working to hang onto the shoppers it has, with new promotions and personalized discounts in its redesigned loyalty program.
The Lidl Plus rewards program launches tomorrow, replacing myLidl.
With Lidl Plus, “you can access member exclusive offers, reward points, personalized coupons, digital receipts and more,” Lidl promises, “all in one convenient app.”
The big change from the old program involves points. Under myLidl, you could earn rewards based on spending thresholds. Under Lidl Plus, you earn a point for every dollar spent, with opportunities for bonus earnings, which you can redeem “for your favorite products or fantastic money-off coupons.” Under the “points” section of the app, available rewards and coupons will be displayed, along with the number of points necessary to obtain them.
Lidl is also promising “member exclusive deals,” along with personalized coupons based on your shopping habits – no points required – as well as “games and surprise rewards.”
The new app is already available to download, though the full features won’t go live until tomorrow. If you register with the same email address you used for myLidl, your profile information will automatically transfer to the new app.
And yes, you do need online access to take full advantage of the new program. At a time when many retailers are being forced to offer shoppers non-digital alternatives to digital-only deals, Lidl says you will need to register for Lidl Plus online or via the app, in order to continue receiving “member pricing.” Once you’ve registered, you can enter your phone number at checkout to apply your deals, but you’ll need online access to use your points to activate those deals.
While “you can absolutely still shop with us without an account or the app,” Lidl explains, “we highly encourage registering because it is the smartest way to save. Plus, you’ll get exclusive Lidl Plus member pricing, personalized coupons, digital receipts and more.”
While Lidl is little known in the U.S., its modern history goes back more than half a century in Europe. European markets first began rolling out Lidl Plus two years ago, so its introduction in the U.S. keeps things consistent worldwide. And if you happen to travel overseas, your Lidl Plus app will work there too – just change the country setting in the app, and you can start saving pounds or Euros instead of dollars.
Lidl says the loyalty program already has more than 19 million daily active users across Europe. And executives across the continent say the points-based system puts the customer in control. “Shopping habits are changing, and we want to provide a tangible benefit that gives our customers even more access to the products they love,” the Director of Lidl’s Malta division said when it rolled out Lidl Plus in April. His UK counterpart agreed when that country introduced Lidl Plus in May, saying “the new points system provides greater flexibility, and ensures that every pound spent goes toward a reward that the customer can tailor to their own shopping habits.”
Recent data from Worldpanel showed that the percentage of Lidl visits in the UK that involved a coupon reward more than doubled, from 26% before Lidl Plus to 57% after its introduction. The rate of promotions at Lidl also nearly doubled, from 11.6% last year to 21.4%.
Not everyone seems thrilled with the new program, though. “Last month, I only had to spend £250 to get a 10% discount,” one UK shopper wrote online recently. “Now I’d have to spend £500 to get a mere £5 discount. Or spend £100 to get a free cucumber… This really is a very backward step for the hard pressed consumer.”
While Lidl seems content to expand slowly in the U.S., it likely hopes its new loyalty program will help it catch up to its biggest competitor, ALDI. ALDI debuted in the U.S. decades ago, and has since expanded to nearly 2,800 stores in 31 states. Lidl, in contrast, has about 200 stores in nine East Coast states and Washington, DC. It’s churned through CEOs since its 2017 American launch. It’s tried various brand awareness campaigns to let shoppers know it even exists. And some critics are still questioning whether it can make it in the U.S.
“In the one country where Lidl should be aggressive, America, they’ve been conservative,” business strategist and retail analyst Brittain Ladd wrote in a recent LinkedIn post. “If Lidl doesn’t become more aggressive, they should depart the USA,” otherwise “Lidl is irrelevant as a grocery retailer in the U.S.”
Few shoppers outside of the states where it operates even know what Lidl is. Now, the retailer hopes a loyalty app that’s proven successful elsewhere, will help encourage shoppers in states where it does operate to give them a try – and come back for more.
