Southern Co-op to launch digital loyalty app with Lobyco

Southern Co-op has announced a multi-year partnership with loyalty solutions provider Lobyco to launch a new digital loyalty app designed to enhance customer engagement and increase value for members.

Southern Co-op, a regional cooperative with over 300 locations across the south of England, will utilise the relationship to introduce an app designed to simplify rewards access, while also increasing digital participation through interactive elements such as games and challenges.

Loyalty trends

Industry data reveals that 80% of UK consumers participate in at least one loyalty programme, indicating the prevalence of rewards-based engagement among shoppers. While 70% of UK shoppers perceive loyalty pricing as providing good savings, there remains a degree of scepticism, with 40% questioning the authenticity of these savings. Retailers are therefore seeking to improve transparency, personalisation and digital relevance within their loyalty offerings to drive up engagement.

The partnership

The collaboration with Lobyco, a company based in Copenhagen specialising in loyalty programmes for grocery retailers, will see the development of an app that not only simplifies rewards but introduces new ways for customers to interact with Southern Co-op's services. The app will provide a personalised and interactive platform for members to redeem exclusive offers and engage with content, including games and challenges, intended to add convenience and variety to the shopping experience.

The new platform forms part of Southern Co-op's wider strategy to enhance its digital presence and reinforce its focus on delivering added value to the communities it serves. Features such as gamified challenges and a dynamic promotions capability are central to Southern Co-op's plans to build on its membership-based model.

Customer engagement focus

Lindsay Elliott, Head of IT and Business Transformation for Southern Co-op, highlighted the cooperative's intentions with the new partnership:

"Our members are at the heart of everything we do, and the partnership with Lobyco marks an exciting step forward in how we connect with them. By launching a new, interactive loyalty app, we're creating more ways for our members to engage, be rewarded and feel valued. With features like games, challenges and personalised offers, our Southern Co-op app will bring added fun and convenience to our member shopping experiences, while reinforcing our commitment to delivering meaningful value to our communities. Working with Lobyco has been a natural fit and we're looking forward to partnering with them to bring our members a more engaging and rewarding digital experience."

The app is expected to offer a seamless experience, integrating with Southern Co-op's existing infrastructure to ensure accessibility for all members. The loyalty solution is designed to support the cooperative's community-led approach by providing meaningful rewards that reflect local preferences and customer interests.

Lobyco's perspective

Anders Mittag, Chief Commercial Officer at Lobyco, underlined the shared values between the two organisations:

"We are thrilled to partner with Southern Co-op, a cooperative that puts its customers and communities at the heart of everything it does. At Lobyco, we bring our global expertise in loyalty and digital engagement, providing the tools and technologies that will help Southern Co-op transform how it connects with customers. Together, we will launch a new loyalty app that goes beyond traditional rewards, bringing customers games, challenges, and a dynamic promotions platform to create a more interactive, personalised experience. This partnership is a perfect match between Southern Co-op's dedication to its members and Lobyco's mission to simplify loyalty and build stronger customer connections."

Lobyco is recognised for its collaboration with retailers across North America, EMEA, and APAC, providing a technology suite designed to enhance the effectiveness of loyalty, promotions, and self-checkout processes.

According to the companies, the introduction of the new app underscores the growing importance of personalisation and deeper digital engagement in fostering lasting customer relationships amid evolving consumer expectations for loyalty schemes in the UK.