Press Release
SAINSBURY'S RENEWS NECTAR CONTRACT
Date: 28 March 2007
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Sainsbury's today announced that it has renewed its contract with LMG, the company that owns and operates the Nectar customer loyalty programme, and will continue to offer customers the opportunity to collect and redeem Nectar points at its stores. Sainsbury's will also be the first major retailer to benefit from LMG's new data analytics business, providing even greater insight into customer shopping trends from analysis of till and Nectar information.
Sainsbury's CEO Justin King said:
"We have reviewed our participation in Nectar as part of our Making Sainsbury's Great Again recovery plan and the renewal of the contract confirms we're confident that customers value the rewards they can collect. We are also broadening our relationship to enhance our ability to use the data the programme can provide for the benefit of our customers."
Alex Moorhead, CEO of LMG, commented:
"As a Nectar partner from launch, Sainsbury's continued participation is a testament to the benefits of the Nectar programme. This renewed commitment is another significant milestone for Nectar, with over 10 million households participating and having enjoyed over £800 million of rewards. The extension of our relationship through the provision of more detailed data analysis will enable Sainsbury's to make better informed decisions across its business and more tailored offers to customers. We value our long term relationship and look forward to contributing to the continued growth and success of Sainsbury's. "
Nectar's growth and continued success
Nectar is the UK's largest customer reward programme, with half of all UK households now possessing a Nectar card with which they collect points on their everyday shopping. Nectar has grown from four launch partners to 16 companies issuing Nectar points nationwide, providing a high street presence at over 6,000 outlets.
Rob Templeman, CEO of Debenhams said:
"Nectar has played an important part in helping Debenhams develop a greater understanding of our customers and their shopping habits. We use the programme to understand potential catchment areas for new store openings as well as enhancing our offer to existing customers.
"We have been encouraged by the initial results of our Nectar trial redemption programme, where collectors can redeem their Nectar points for either part payment or for products within our stores. We are planning to extend this 'real-time redemption' (that is, immediate redemption using the card) out to all of our stores.
"As a founding partner of Nectar we believe the facility for Nectar collectors to be able to redeem their points electronically for our products will benefit both our customers and the company and demonstrates our commitment to the Nectar programme."
The Nectar programme has grown and diversified over the past year. Last week it also announced that Gala Bingo joined the programme so that Nectar can extend its reach into the leisure industry and a favourite British pastime.
Nectar is also simplifying the way that collectors can enjoy their rewards. From mid-April this year, any Nectar collectors visiting a Vue cinema will be able to swipe their Nectar card for free entry (1000 Nectar points). Collectors can already swipe their Nectar cards for money off at Debenhams, Argos and Sainsbury's. They can also present their Nectar cards at Blockbuster for free DVD rental (500 Nectar points), Tussauds Group (Alton Towers, Thorpe Park,
Chessington World of Adventures) and Legoland for free entry (from 4,300 per adult and 3000 Nectar points per child).
In October 2005, Nectar launched an online version called Nectar eStores which features major internet brands such as Amazon and eBay among 80 online partners. Nectar for Business, targeting small to medium enterprises, was also launched in 2005. It features major business to business brands including Viking Direct, ICI Dulux Decorator Centres and Brakes and now has 450,000 dedicated business collectors.
More insightful data analysis
LMG's new data analytics business will analyse the products bought by Sainsbury's customers to improve understanding about their shopping and buying habits. This will enable Sainsbury's to make better informed decisions across the business and more tailored offers to its customers as well as sharing information with suppliers to help them understand the purchasing behaviour of customers. This will provide benefits in the development of new products and communication with customers.
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