MINNEAPOLIS — As high grocery prices continue to vex shoppers, General Mills is hoping to steer them toward its portfolio of products with its first brand loyalty program.
The Good Rewards program includes special offers and points that users can redeem for gift cards, merchandise and more.
"This gives us an opportunity to more clearly call out the General Mills group of brands and reward consumers for those purchases," said Doug Martin, chief brand and disruptive growth officer for the Golden Valley-based food maker. "It's also a really great way to know more about the consumer and make some suggestions."
The loyalty program is part of the hugely popular Fetch Rewards app, which this week is the top downloaded shopping app for iPhones and the second most downloaded for Android phones. There are about 15 million Fetch users regularly uploading receipts in exchange for points, according to the Madison, Wisconsin, company that runs it.
General Mills' goal is for 1 million people to sign up for Good Rewards within a year, Martin said. Already in fewer than three weeks, 350,000 have registered.
General Mills had been part of Fetch Rewards for a few years already, but the Good Rewards partnership gives it more visibility. A General Mills-sponsored back-to-school promotion was the top offer on the Fetch Rewards app on Tuesday.
"Back-to-school is an incredibly important season for us, as mom is re-establishing those shopping routines at the beginning of the year," making the timing of the Good Rewards launch ideal, Martin said.
Food inflation also reached a 43-year high in June and prices remain top of mind for consumers stretching budgets.
General Mills has contributed to some of that food inflation by raising prices on its products — but so has every other major food and beverage company.
As prices keep rising, national brands are working to keep shoppers from switching to lower-cost store brands.
Through April, store brand sales rose at a relatively fast rate of 7% after years of stagnant growth and declining market share, according to the Private Label Manufacturers Association.
To compete, big brands have to make their value clear or more convincing.
"Our number one defense against private label is: Our experience is the best you can get," Martin said.
The rewards program also provides a detailed look at consumer behavior, which allows General Mills to tweak and tailor its marketing and product offerings.
"We are getting a lot of data about how consumers are shopping," Martin said. "You've got to offer something of value and personalize when possible — that digital data allows us to personalize offers."
The company didn't share how much is being spent on the program, but Martin said he expects the return on investment "is going to be solid."
"The magic here, from our perspective, is in getting more people to explore the General Mills portfolio," he said.
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