Sainsbury's trials 'New Nectar'

Date : 05 April 2018

Sainsbury's is trialling a new approach to Nectar that aims to 'redefine loyalty' by providing shoppers with personalised offers.

Rewarding genuine loyalty

Under the new digitally-led system, shoppers will no longer receive one point for every pound spent, but will instead be sent unique offers based on the items they purchase most often at Sainsbury's, how frequently they shop and how long they have been shopping with the retailer.

New app to access offers

The new Nectar offers will be available for a limited time span and customers will be able to select up to five offers which they can redeem each time they shop via a new smartphone app.  Customers who use Sainsbury's for additional services such as banking and insurance will receive 'more value' from Nectar in the form of bigger rewards, the retailer said. The initiative takes forward the personalisation of Nectar rewards previously tested in its My Coupons trial which ended in mid 2017 and should create new direct opportunities for suppliers to benefit from customer loyalty to their products.

Isle of Wight trial

The new scheme is being tested on the Isle of Wight from April 5th and insights from the trial will be used to shape the future of the scheme nationally. This initiative is the first significant change to Nectar since Sainsbury's purchased the loyalty scheme from Aimia in February.

Competitors review loyalty schemes

New Nectar should re-engage shoppers around the long running loyalty scheme at a time when competitors are taking differing approaches to their loyalty schemes. In February, Waitrose scrapped its Pick Your Own Offers schemes in favour of sending personalised vouchers to customers, while Tesco last year standardised the Boost multiple of its Clubcard points for Reward partners.

Rewarding loyal customers most

Commenting on the launch, Sainsbury’s director of innovation Helen Hunter said: “We are excited to be trialling this new Nectar scheme which gives more rewards to our 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.”

IGD Sainsbury's Trade Briefing 2018

5 June, London

Hear from Mike Coupe, CEO and Paul Mills-Hicks, Commercial Director, along with their leadership team who will provide a business and commercial update.

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