Cannes Lions

Loyalty Card Hijack

FOLK FINLAND, Helsinki / LIDL / 2019

Case Film

Overview

Entries

Credits

Overview

Background

Running a customer loyalty program is expensive and having one would increase the product prices so Lidl has decided not to have one. Just to keep the prices as low as possible. Lidl as the challenger understood that not having their own loyalty card can be turned into a positive thing by hijacking everybody else's cards. Lidl is famous in Finland for marketing campaigns that usually make headlines and coffee table conversations. David has to be witty and aggressive when challenging not only one but two Goliaths. The big competitors tend to be really careful and down to earth in their marketing in the fear of making a mistake and possibly losing customers.

Idea

Lidl gave out a 10 % discount for purchases over 25 euros with any card ever printed in the world. Really, any card at all: Get well soon card, Pension card, Insurance card, Sports teams season ticket card or...yes, the K Group's or S Group's grocery store customer loyalty card. We called this campaign "The Customer Loyalty Card Hijack". The idea was brutally simple and so were the executions.

Strategy

The data is clear. Finns absolutely love their grocery store customer loyalty programs and discount cards. There are over 7 million of those in Finns' wallets which is strange since there are only 5 million people. None of those 7 million cards are Lidl's because they don't have a customer loyalty program at all. Lidl wanted to hit their competitors where it hurts the most: their own loyalty cards. The more people used competitors cards at Lidl, the more market share Lidl got.

Outcome

Lidl earned 99 euros for every euro spent on advertising. The sales grew by 18 million euros and 21,2 % compared to the same time previous year. Their market share grew by 0,5 % which is huge in such a massive business category. The campaign was so successful that Lidl Finland decided to make it one of their annual campaigns also in the future.

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