Content360 2023
FairPrice Group axes out physical Kopitiam cards in favour of app

FairPrice Group axes out physical Kopitiam cards in favour of app

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In a bid to push the FairPrice app, the FairPrice group will be discontinuing its physical Kopitiam cards from 30 June 2023. Like the card, consumers can use the FairPrice app to enjoy a 10% discount, the entity said on a post on Facebook. In the Facebook post on Thursday, Kopitiam also said kiosks would be set up at selected Kopitiam outlets to help customers redeem their money. 

According to an article on The Straits Times, the app will enable consumers to benefit from redeeming Linkpoints for their food and track their food choices. A spokesperson said special arrangements will also be made for the elderly who might struggle with the app.

Understandably, moving of the physical card onto a virtual app will enable the group to have a more consolidated access to first party data to help create a more holistic profile. Loyalty programmes are often the gateway to collecting first party data from consumers.

According to a report on Gartner, one in three businesses without a loyalty program today will establish one by 2027 to ensure first party data collection. Loyalty programs, such as the Kopitiam card, help to reward customers and collect data which can then be used for personalised marketing and enhancing customer experiences.

According to Gartner, currently only 36% of the 1,068 brands Gartner analysed in 2022 had a loyalty program.

One key benefit of first-party data is also that it addresses privacy concerns as consumers are aware where the brand is getting its data from. According to a blog post by Lotame, even if the audience for first party data is relatively small, the data can give you valuable insights. “The first-party data’s accuracy and relevance allow you to predict future patterns, such as audience behavior, with confidence,” said the post.

The collection of this first party data can also help the FairPrice Group (FPG) to realise its retail media ambitions. Last year, it partnered with The Trade Desk to offer brands on the latter's platform with insights on the impact of their digital advertising campaigns across offline and online sales channels. Additionally, the brands will also be able to reach FairPrice's customers beyond the group's owned media platforms. 

The partnership marks the first time that FairPrice Group’s pseudonymised sales conversion data that will be available within a programmatic media buying platform. FairPrice Group has more than 570 touchpoints and reaches over 90% of households in Singapore. The new partnership allows brands to reach an engaged customer base of more than two million NTUC Union and Link Members, including over 700,000 FairPrice app users.

With the new offering, brands and media agencies can also directly measure how digital ad campaigns are driving both in-store and online sales within the FairPrice ecosystem. Through these measurement insights, brands can make near real-time enhancements to their ad campaigns that can be optimised in a way that was not previously possible. 

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