The revamped loyalty card, which has the potential to be a game changer in the lucrative world of loyalty programs, includes a new discount proposition, my5, which will give FlyBuys customers an added incentive to swipe their card. It will give customers 10 per cent off five products of their choice based on an offering of 5500 products.

The prospect of bigger discounting has sent shivers down the spines of suppliers, caught in the crossfire of the fierce price war between Coles and Woolworths.

But, if Coles can pull it off and offer a better suite of options than Woolworths, it has the potential to spin the loyalty business off into a separate entity down the track.

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