Sainsbury nectar card

Sir, It was interesting to see Sainsbury’s buy the Nectar reward scheme. Questions about the relevance of loyalty cards are rife after Tesco limited Clubcard rewards and as price wars dominate strategy at discount stores.

But Sainsbury’s purchase shows it really gets the value of loyalty. In our Brand Loyalty Index, 71% of Sainsbury’s customers say it has a good loyalty rewards scheme and 46% say it offers frequent or good promotional offers. It’s clear that consumers see and like these loyalty rewards, so why scrap them? The question now is, how will Sainsbury’s enhance the Nectar scheme?

The insight data that Sainsbury’s has means they can get under the skin of consumer shopping habits and marry up what people want with what they offer loyal shoppers. Will they go mobile, or promote sustainable choices perhaps? Only time will tell. This is a sound investment in both loyalty schemes and loyal customers.

Chris Baldwin, director of consumer promotions and loyalty, Sodexo Engage