Kroger is the largest supermarket chain in the United States by revenue, operating approximately 2,700 stores under names including Kroger, Ralphs, King Soopers, Harris Teeter, Fred Meyer, and Mariano's. Its loyalty program, Kroger Plus, serves approximately 60 million households and generates significant data that Kroger uses to personalise pricing, promotions, and supplier negotiations.
Understanding what Kroger does with its loyalty program reveals design principles that any business can adapt, regardless of size.
What Kroger Plus actually does
Fuel points
The cornerstone of Kroger's loyalty mechanic is fuel discounts. Members earn 1 fuel point per dollar spent on groceries and redeem 100 points for 10 cents off per gallon of fuel at Kroger fuel centres. Special categories earn more: pharmacy prescriptions, gift card purchases, and periodically promoted grocery items.
This mechanic is powerful because fuel is a high-frequency, high-salience expense. Even customers who shop at Kroger occasionally accumulate enough points to feel the discount at the pump, and the pump visit reinforces the Kroger brand association. The fuel benefit also works as a differentiation tool: it is something a local specialty grocer cannot easily replicate.
Personalised digital coupons
Kroger uses purchase history data to generate personalised coupon offers through the Kroger app. A customer who regularly buys a specific yoghurt brand gets a coupon for that yoghurt. A customer who has not bought coffee in three months gets a coupon to drive trial of a premium coffee line.
The personalisation matters because the coupon is relevant: customers are far more likely to clip and use a coupon for something they already buy than a generic offer.
Bonus point events
Periodically, Kroger runs bonus point events on specific products or categories: 4x fuel points on all natural and organic products this week, triple points on all pharmacy purchases through the end of the month. These events drive category exploration and increase basket size in the promoted categories.
The data layer
Kroger's loyalty program is as much an advertising business as a loyalty business. Kroger uses purchase data to sell targeted advertising to CPG brands through its Kroger Precision Marketing platform. A brand wanting to reach households that regularly buy competing products can target those households through Kroger's platform. This revenue stream partially subsidises the fuel discount and coupon program.
Why the program works
Fuel is a utility, not a luxury. Unlike a free coffee or a point toward a discount, fuel savings are tangible and frequently needed. Customers actively calculate whether they have enough points before deciding where to fill up. This creates a habitual engagement with the program that does not require marketing to maintain.
The personalisation creates loyalty, not just transactions. A coupon for something you already buy feels like Kroger knows you. This perceived personalisation is more powerful than a generic 10% off offer, even if the face value is similar.
Free and instant to join. No application form, no waiting for a card, no spending threshold. The phone number or email address at the checkout is enough to activate the program.
What the program does not do well
The fuel benefit is not replicable by most businesses. It works for Kroger because of the infrastructure of fuel centres alongside stores. A coffee shop cannot offer fuel discounts.
The app is mandatory for full functionality. Personalised coupons and fuel point tracking require the Kroger app. This creates a download barrier for occasional shoppers who are the hardest to retain.
Points expire. Kroger fuel points expire monthly, which creates urgency but also frustration for customers who accumulate points without making it to a fuel centre.
What SMBs can adapt from Kroger
1. Find your equivalent of a fuel benefit. What is the high-frequency, tangible utility benefit your customers already use that you can tie to loyalty membership? For a coffee shop, the reward coffee is partly that: tangible, frequent, expected. For a pet store, a monthly grooming discount tied to a loyalty card. Identify the benefit that customers will actively track.
2. Use purchase history to make promotions feel personal. Even without Kroger's data infrastructure, a small business can notice what regular customers order and send targeted push notifications. "You have not ordered your usual flat white this week. Come in for a double stamp today." Manual targeting is less scalable but more personal.
3. Run bonus stamp events on specific products. "Double stamps on all cold brew orders this week" drives trial of a higher-margin product, exactly as Kroger's bonus point events drive category exploration. Do this once a month for variety.
4. Remove friction from enrollment. Kroger requires only a phone number. A wallet-pass loyalty program requires only a QR code scan. The fewer steps between "I want to join" and "I am a member," the higher the enrollment rate.
The SMB implementation
A wallet-pass loyalty program at $99/month gives an independent business the essentials of what Kroger's program does: automatic stamp tracking, push notifications for near-reward nudges and promotions, and a loyalty card that lives in the customer's phone without requiring a separate app download.
The personalisation layer comes from targeted push notification campaigns to all members or to specific groups (Pro plan). Not Kroger-scale personalisation, but effective at independent business scale.
LoyaltyPass: $99/month, 14-day free trial, no credit card required.
Start your free trial at LoyaltyPass.
Related reading: Best Loyalty Programs 2026: What the Best Programs Have in Common covers the principles behind the most effective loyalty programs. Types of Loyalty Programs: Which Format Works for Your Business covers when to use points, stamps, tiers, or partner benefits. Loyalty Program for Small Business: How to Choose and Launch One covers the decision framework for independent businesses.
