Lotte Mart’s new loyalty program 'Snow Point' attracts new members

Lotte Mart's"new loyalty program "Snow Point" targets loyal customers. [LOTTE MART]

Lotte Mart’s new loyalty program “Snow Point” garnered more new members, announced the retailer Sunday. The new points system is more beneficial to loyal customers, unlike many existing memberships that target all customers in general, the company said.

Lotte Mart announced on Sunday that after it launched Snow Point earlier last month, the number of new members surged more than three times on year.

Snow Points are saved when a customer shops at the discount store after registering as a member of Lotte Mart in the “Lotte Mart Go” app. There are no points from online purchases.

All registered members who shop in store can save Snow Points, but the percentage of saved points differs depending on the total amount of purchases over the previous six months.

The reward program categorizes customers into four ranks: MVG, VIP, GOLD and ACE. A member ranked MVG, the highest rank, can save up to 7 percent on purchases above 70,000 won ($53) as Snow Points if the member has bought more than 200,000 won the previous month. For purchases less than 30,000 won, 1.2 percent is saved.

The benefits grow exponentially greater for customers who shop more often and purchase more, like the snowball effect from which the program's name derives from.

The “L Point” system which applies to all Lotte Group subsidiaries saves 0.1 percent on purchases, regardless of the member’s rank.

Snow Points can be used at Lotte Mart stores within 180 days after purchases.

The retailer has been researching factors such as the number of members per rank and their purchase patterns to restructure its points system, according to the company.

“Snow Point is an offline customer reward program launched after a series of tests to allow customers to enjoy the fun of shopping,” Lotte Mart marketing team lead Kim Hyun-joon said. “More differentiated benefits are to follow.”

BY YOO JI-YOEN [sohn.dongjoo@joongang.co.kr]