Sainsbury claims to have leapfrogged Tesco with a new loyalty card data crunching service for suppliers.

Sainsbury customer marketing director Andrew Ground claimed the system was more advanced and reactive than that used by Tesco with its Clubcard, and available to a wider base of suppliers.

He said it could provide basic data within 10 days in key areas such as repeat rate of purchase.

Sainsbury has processed two years’ worth of loyalty card data from its discontinued Reward card and the Nectar card.

Market researcher TNS is adding running reports on the shopping patterns of one million households in the UK on to the system. Ground said: “We have structured this so it is available to a bigger base of suppliers, including smaller ones. We can do a ‘mega crunch’ on the data looking at the most important things suppliers need to know.”

Ground said the new reports were available to all Sainsbury suppliers, at a starting fee of £2,000 for basic data. A “complex rate card” applied for more advanced reports.

The launch of the new Nectar data sharing system follows a pilot, which ran between November 2002 and July 2003, where Sainsbury shared product and store-based analysis with five key suppliers.

Ground said one supplier launched a range of ready meals during the trials. Early data on sales helped alter the launch plans “and make the range a success.

“We are able to give more actionable and valuable information than we could using just loyalty card data.”

Sainsbury had come under criticism from the City for not making full use of Nectar card data (The Grocer, September 6, 2003, p35).

Tesco uses customer insight specialist Dunnhumby to process its loyalty card data. It says it can predict if a new product will be a success six weeks after launch.
Anne Bruce