Saving Even a Penny... Increased Use of CU Point Accumulation and Redemption

Membership Point Accumulation and Usage Growth Rate
Highest in the Last 5 Years
PocketCU Expands 'Jjantech' Features

As steep price increases this year have spread a frugal consumption culture, the number of cases of accumulating and using points at convenience stores has significantly increased.

CU is introducing the Pocket CU application (app), where users can accumulate membership points and access representative products [Photo by CU].

CU announced on the 12th that the growth rate of membership point accumulation and usage cases this year (January to September) is the highest among the past five years.

CU's membership accumulation growth rate compared to the previous year was 13.0% in 2019, 14.2% in 2020, 16.1% in 2021, and 15.9% in 2022, steadily rising along with the increase in convenience store customers. This year, with increased price burdens, it soared to 23.1%, up 7.2 percentage points from the previous year.

Previously, point accumulation was an additional benefit, with only 0.6 out of 10 customers accumulating points five years ago, but recently, more than twice that number?about 12% of all customers?are accumulating points.

The usage rate of these accumulated membership points has also recently increased significantly. CU's membership usage growth rate compared to the previous year fluctuated at 9.4% in 2019, 10.1% in 2020, 9.2% in 2021, and 10.3% in 2022, but this year it jumped to 17.8%.

It is analyzed that in this era of high inflation, more people are using the points they have accumulated instead of paying with cash or credit cards to save even a penny. The recent popularity of open chat rooms where young people share their 'Jjantech' (frugal finance) experiences is a similar trend.

As the accumulation and usage rates of points increase, the loyalty index is also on the rise. Looking at CU's loyal customer sales growth rate compared to the previous year, it was 16.9% in 2019, 18.9% in 2020, and from 2021, when local consumption gradually took hold due to COVID-19, it has steadily recorded rates in the 20% range for the past three years: 21.6% in 2021, 20.0% in 2022, and 25.4% this year.

If customers register up to three favorite stores on CU's proprietary commerce application (app) PocketCU and purchase an average of 30,000 KRW or more per month over the past three months, they are provided with an industry-leading 2% accumulation rate.

Amid this trend, CU is introducing various functions through PocketCU to support frugal consumption. Recently, to help customers shop conveniently and consume reasonably, CU launched its own prepaid simple payment service, 'CU Money.' It is a simple payment service where users can charge as much cash as needed onto a mobile card within PocketCU and use it linked to their bank accounts.

With the goal of securing loyal customers and attracting new ones, CU is also operating the industry's first app-tech feature called 'Point Charging Station.' It is a platform where users can earn CU membership points by participating in various events, allowing them to easily generate income in daily life and immediately use it like cash at CU.

A BGF Retail official said, "Based on the accessibility, which is the biggest competitive advantage of existing convenience stores, we are strengthening membership marketing to provide shopping benefits and increase sales in this high inflation era," adding, "Recently, we have been focusing on providing customized convenience by enhancing online and offline connectivity using mobile apps."