Nectar Case Study

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Aishwarya. M DM16201 Deivanai. A DM16215 Shibani Naidu DM16243 Srimathi. R DM16247 Nectar: Making Loyalty Pay Introduction The Nectar programme was launched in September 2002. The four initial points-issuing partners (the "founding partners") were Sainsbury's, Debenhams, BP and Barclaycard. The card is a standard magnetic stripe card, carrying the branding of all four launch partners.The programme was developed over a period of eighteen months using extensive consumer research to make sure that it addressed most of the concerns that UK consumers had with loyalty card programmes. At the time, consumers felt that there were too many loyalty programmes in the market and that they wanted to earn bigger rewards more quickly. Competition Four chains…show more content…
Also costs more than 120 million pounds towards the loyalty program. Company is competing with partners on same commodities. Benefits sometimes get split due to similar offering by partners. There is no complete control over its nectar loyalty program. The amount of inactive collectors has increased to 12% from 0, one time users then they abandon it. Options Available to Sainsbury Nectar Program Continue with the existing Nectar program. Advantages of Nectar Program: • The program’s management is outsourced to LMUK, thereby allowing its partners to focus on core competencies. • Cost Reduction:Multiple Partners share the entire cost which in a way will reduce the cost • Expansion into various countries • Customer segmentation: based on past purchase behaviour in various outlets the customer preferences are noted. • Award more points to Sainsbury's' customers on product purchase. Customer Advantages • Nectar card holders can collect points and redeem them at different points such as flights, meals, vouchers, etc. • Reward points can be collected by combining points from a variety of firms rather than Sainsbury alone and these points are exchanged for Nectar vouchers • More attainable due to a number of different loyal partners. Coalition

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