What a clever move by Wesfarmers, the owner of Bunnings, Kmart and Priceline.
They’ve announced a free 6-month trial of OnePass, their membership program.
Here’s why it’s so smart.
OnePass usually costs less than $1 a week to join.
But by making it free, Wesfarmers have removed a point of friction: The pain of payment.
Rationally, it shouldn’t matter.
Psychologically, it does.
It’s called the “zero price effect”.
As soon as you make something free, it changes behaviour.
The appeal for consumers here is two-fold: free membership and free shipping as a result.
But make no mistake, Wesfarmers are the real winners.
Yes, they’ll get great PR, generating goodwill by giving Aussies free shipping in tough times.
But that’s not the real win.
It’s such a clever move because:
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They’ll acquire more customers, pulling them away from competitors like Amazon.
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They’ll encourage people to shop more because they don’t have to worry about using petrol.
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6 months is long enough to create a habit of shopping with OnePass
And perhaps most importantly, data.
By joining as members, Wesfarmers gets data on people who were previously invisible because they shopped in-store or with competitors.
So, is there a consumer upside? Sure.
But Wesfarmers are the real winners.
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