joseph.creative

Nectar scheme "in trouble"

Loyalty card scheme Nectar, whose affiliates include the likes of Sainsbury's, Debenhams and Threshers, has hit back at claims that some of its members are considering pulling out.

A number of the companies behind Nectar feel the scheme's impact on sales is not as great as they had initially hoped, according to a report in the Mail on Sunday.

Founding member Sainsbury's has already announced a review of Nectar with chief executive Justin King refusing to rule out leaving the scheme, which accounts for half the supermarket group's £40 million marketing budget.

"That doesn't feel like the right proportion to me," he said when describing the level of marketing spend on the scheme, adding: "We are looking to save a significant amount of money from that in the next three years."

It is also alleged that another founding member, Barclaycard, has slashed the amount it spends on the card and no longer offers the scheme to new customers.

A high-level source from another of the 16 members, who refused to be named, has also spoken of their doubts, saying that Nectar was "not quite as exciting as we were led to believe it was going to be".

However client services director Brian Sinclair of Loyalty Management, the firm behind Nectar, defended the scheme when he said: "It's the best possible investment and we are confident that our sponsors feel that."

Loyalty Management chief executive Rob Geirkink said of the report: "This is a weak story. It also contains a lot of information which is simply wrong."

He added that Nectar was already the UK's most successful loyalty card programme, with more than half the country's households collecting points. New members from the healthcare and leisure industries are also on the verge of being signed up, according to the company.

Nectar, which has handed out more than £340 million in rewards, was launched in 2002. Account holders, of which there are around 13 million in the UK, build up points as they buy products from participating firms, which can then be exchanged for rewards such as household appliances, restaurant meals and flights.

Cherrypie

Thanks for this Joseph...you're very helpful. It's OK though... I've lost the card again and it's really not the most important piece of plastic in my life, lol! I tend to rotate my shopping between Sainsbury's, Asda and Waitrose anyway...

iconoclast

oh God no, i have something like 600 points in my card, i was hoping to redeem those points when i go back to the UK! that's really awful..