POTASH BROS. LAUNCHES CELL PHONE LOYALTY PROGRAM

MICHAEL GARRY

CHICAGO - Potash Bros. Markets, a two-store independent here, last month launched a "cardless" loyalty marketing program linked to shoppers' cell phones that includes the ability to send text messages about promotions and events.

Potash Bros. is the second U.S. food retailer to offer a cell phone loyalty program, following Broadway Marketplace, Cambridge, Mass., a one-store operator that has offered it since September. The program is provided and managed by MobileLime, Watertown, Mass. This is Potash Bros. first loyalty program.

"We've got a cardless program to compete with the chain stores in our market that have card programs," said Art Potash, owner and vice president. "We liked the idea that this is cardless because with all the cards people carry they don't need one for this program. Most people in our area have cell phones and use them for text messages and games."

As of early March, Potash Bros. had signed up over 1,500 shoppers for the program, adding 100-150 per day. Its goal is to sign up 80% of its customer base.

Thus far under the program, shoppers who sign up receive a weekly email listing the items discounted for loyalty members. They earn the discounts by purchasing the products and providing the cashier with their cell phone number. Other store specials are still available to non-loyalty shoppers.

Potash Bros. plans to use the text messaging capability to communicate with shoppers who agree to receive them, and following that will enable shoppers to pay for groceries by linking their cell phone number to a financial account. "It's a new technology and it takes a while to get used to," Potash said.

Using text messages, the retailer could notify online shoppers that their order is being delivered, he said. Another option is to remind shoppers at 2 p.m. that the stores are having a wine tasting at 4 p.m.

MobileLime is also tracking loyalty purchases for Potash in order to enable the retailer to eventually customize promotions for individual shoppers.