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22.11.2018

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    New Nectar

    Sainsbury's

    Meet new Nectar, the new way to get points at Sainsbury’s. We created a proposition that redefines loyalty, that’s entirely digital and inverts the conventional loyalty mechanic, rewarding loyalty ahead of disloyalty.

    What customer problems did you set out to solve?

    • Mounting in pressure the retail market means Sainsbury’s must ensure they reward their customers fairly. Historically, Nectar collectors received “1 point per £1” spent at Sainsbury’s, regardless of their loyalty. Less loyal customers received more generous offers and loyal customers received less
    • Many offers were only available on paper. Online shoppers or simply customers that do not wish to receive marketing to their home therefore missed out. Insight suggested that, instead of relying on paper, customers increasingly want to do everything on their phones, including their shopping.

    What differentiates your proposition from other offerings in the market?

    No other loyalty offering in the Grocery retail market is completely digital and includes the following innovative features;

    1. Personalisation: Offers tailored to you every week based on what you buy. Using machine learning ingests individual customers’ likes and dislikes and refines the offering every week
    2. Real time experience: Watch your points balance update at the till and get bonus points games as you exit the shop
    3. Digital card: We’ve eliminated the need for plastic cards in our stores so customers won’t miss out if they leave their card at home
    4. Offers and choosing favourites: Choose your favourites to use again and again as well as your weekly offers.

    What impact has the proposition had?

    Nectar has delivered;

    • Fair distribution of points to most loyal customers. Most loyal customers are rewarded for their loyalty
    • Genuine excitement for customers driving 82% retained weekly engagement after 20 weeks
    • Operating costs new Nectar at a third of the cost of the old scheme
    • The ability to add new offer types within 2 working days instead of 2 months.

    What’s next for your proposition?

    Next features include;

    • Expand offer bank to be enable greater range of offers across Sainsbury’s, Argos and all Nectar partners
    • Greater range of reward types e.g. money off your shop and ability to save offers for later
    • Putting digital Nectar card into Google Wallet and Apple Pay

    Find out more about Nectar by Sainsbury's here.

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