Launched to great fanfare at an invitation only soirée in the Rives de Clausen, the loyalty card has received a big push from the Cactus marketing department, with advertisements running on television and radio and splashed across newspapers and magazines. It even has its own slogan, “Ee staarckt Stéck”. Special deals were offered to those customers who signed up for a card during the first few days of the launch, which began on 10 February. “The investment has been significant, not just in the technology but also in terms of organisation and marketing and the training of staff,” says Cactus managing director Laurent Schonckert.

He says the timing is right to launch the card, even though the idea had been brewing for some time before it was finally given the green light in 2007. “The decision was taken before anybody was talking about the crisis,” Schonckert explains. “In fact we wanted to launch last autumn, but we needed to be certain that the technology was working properly. So we conducted a series of in-house tests to make sure we got it right.” He does, however, concede that the current crisis, with many consumers looking to save wherever they can, may help make the loyalty card a success.

Best practice

Large supermarket chains from abroad that have established a presence in Luxembourg – notably Auchan, Cora and Delhaize – have long had their own loyalty cards. Belgian chain Delhaize, for example, launched its Carte Plus in 1991 and by 2006 had close to three million card holders. “Currently some 100,000 Delhaize Carte Plus are in circulation in Luxembourg,” says Delhaize communication manager Liesbeth Rogiers. Auchan followed suit in Luxembourg at the end of 2002 and has also enjoyed success with its card. That is not to say that Cactus has not previously rewarded its more loyal customers. For years it provided cards to specific groups of customers, including a highly popular Senior Citizens’ card, which it managed in conjunction with Service RBS based in Itzig. Indeed, it was so popular that when the retailer announced last year that it was withdrawing the Senior Citizens’ card, Service RBS was inundated with phone calls from some of the 17,000 concerned card holders.

In addition, since 2003 Cactus has been offering all customers collectible stamps which could be exchanged for a variety of gift items or used to buy them at discount prices – everything from glasses and kitchen knives to garden tools and bathroom linen. “We were given a benchmark by the Dutch company that coordinated the stamp system, but in Luxembourg we broke all world records,” says Schonckert with some pride. The launch of the loyalty card derives from the Cactus management’s wish to offer customers even more advantages. The idea behind the card is familiar. Customers collect one point for each euro they spend in any Cactus store – including the Cactus Hobbi, Cactus Marché and Drink Shops as well as the group’s numerous in-house restaurants, bistros and cafés. They then exchange 500 points for a 5-euro voucher that they can spend on their next purchase or use to buy special offer items highlighted in the store. To help families collect points, card holders also receive three mini-cards that allow anyone to add points to the main card.

Cactus has, however, introduced two main differences to other loyalty cards. Firstly, points are not just awarded for purchases but also for frequentation – card holders who visit Cactus stores more than five times a month gain an additional 50 points. “That is an innovative idea – we are the only supermarket to introduce these bonus points,” says Schonckert. “We took our time to develop the card in line with our best practice philosophy.” The second innovation is that income from card users will be used to support the creation of a 50ha. nature reserve, managed by the Fondation Hëllef fir d’Nature, in the commune of Heinerscheid in the north of Luxembourg. This so-called Cactusbësch (Cactus woods) will not only help protect an area of natural woods, but will also be used for pedagogical activities. “Cactus has long supported durable development through a variety of activities,” says Schonckert citing the retail chain’s Natierlech campaign that not only promoted local and organic produce, but was also used to encourage recycling and energy efficiency in-house.