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NEWS6 April 2018

Sainsbury’s trials new Nectar scheme

Data analytics Mobile News Retail Technology UK

UK – Sainsbury’s is revamping its Nectar loyalty scheme by rewarding customers based on how frequently they shop and how long they’ve been shopping with the supermarket.

Currently being trialled in stores on the Isle of Wight, the changes will see shoppers rewarded for their loyalty over time, rather than earning points for each pound spent.

Customers will be able to choose the offers they are most interested in, online or via the Nectar mobile app. Offers are curated based on the products the customer buys most often, and they will earn points on these rather than their total spend.

Points in the new scheme will be worth the same (i.e. 500 points will still be worth £2.50 ) and customers’ existing points will not be affected.

The company says it will use insights from the Isle of Wight trial, running indefinitely, to inform the future of the loyalty programme.

Helen Hunter, director of innovation at Sainsbury’s, said the new scheme would give more rewards to loyal customers. “By giving them the option to choose the products on which they earn Nectar and awarding points based on loyalty, we’ll be able to show our most valuable customers how important they are to us. We’ll be actively listening to customers during the trial so that we can shape new Nectar as we learn.”

Sainsbury’s bought Nectar from Canadian data, marketing and analytics firm Aimia in February. At the time, the supermarket said the acquisition would not change the loyalty scheme. The brand has been part of the Nectar scheme since it began in 2002.

Rob Meakin, managing director at Loyalty Pro, said the move reflects the increasing importance supermarkets and retail brands are placing on customer retention. He added: “Consumers now expect a certain level of personalisation with deals they make – this is what we’re calling the ‘membership economy’, where everyone is now expecting the VIP treatment with tailored rewards that reflect the consumer’s own buying patterns.

“As more and more consider loyalty as a sort of currency, the battle between the UK’s top supermarkets will only intensify. It will surely be a matter of time before other UK chains respond with their own schemes.”

@RESEARCH LIVE

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