Nectar loyalty card

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Nectar Loyalty Limited
Limited company
Industry Retail
Founded 2002
Headquarters 80 Strand, London
Key people
James Moir, Managing director
Products Loyalty scheme
Owner J Sainsbury plc
Website www.nectar.com

Nectar is a loyalty card scheme in the United Kingdom, run by Nectar Loyalty Ltd. The scheme is the largest in the United Kingdom, and comprises a number of partner companies including Sainsbury's, BP and eBay. It launched in 2002 with initially four partner companies, and by 2010 had grown to include over 14 companies and over 400 online retailers. Participating companies cover sectors including travel, retail, finance and newspapers.

The scheme was established by Loyalty Management Group, replacing the existing schemes of three of the four launch companies. Nectar was purchased by the Canadian Groupe Aeroplan (now Aimia) in 2007,[1] and purchased by Sainsbury's in 2018.[2]

History[edit]

The Nectar scheme was launched in 2002, merging the existing loyalty programmes of Sainsbury's, BP and Barclaycard, and including Debenhams which did not have an existing scheme. It was run by Loyalty Management Group, then chaired by Sir Keith Mills, the founder of Air Miles.[3] At the time of launch, Nectar confirmed it would be open to more companies to join, excluding rivals of existing members.[4]

In December 2007, Loyalty Management Group was purchased by the Canadian Aeroplan, for £368 million.[1]

By 2010, Nectar claimed that 16.8 million people were part of the scheme, and that it had 14 member companies and over 400 online retailers.[5]

In August 2017, Nectar announced it was partnering with the Daily Mail newspaper. This association with a daily newspaper accused of racism, homophobia and sexism upset many customers, who cancelled their accounts and posted photos of their cut-up loyalty cards online.[6] The company responded, "we know that not all of you will support every partner."[7]

On 1 February 2018 J Sainsbury plc announced that it had purchased the Nectar business from Aimia for £60 million.[8]

Sainsbury's began trialling a new Nectar points-earning scheme for stores on the Isle of Wight in April 2018, in which the standard earning rate of one point for each pound spent was replaced by points on specific items plus points based on how frequently and how long a member has been shopping with Sainsbury's.[9]

Collection[edit]

Cardholders receive points on purchases made at participating retailers both instore and online, generally beginning at one point per whole pound spent. Points for fuel at BP and Sainsbury's are awarded for each litre purchased. Extra points may be earned when buying certain products or during particular promotions. A number of other online retailers award points when purchases are made on their websites accessed through the main Nectar website.

Nectar receives a payment from each retailer for each point paid to a customer. It then reimburses the retailer when the points are redeemed.[10]

It is one of the few loyalty cards that cannot be used with Android Pay .

Redemption[edit]

A number of retailers allow cardholders to redeem points in store for money off their shopping, including Argos and Sainsbury's.[11]

Points can also be redeemed with a number of partners through evouchers, including Eurostar, PizzaExpress and Hertz. Points are lost if a Nectar account is closed. For example, an account may be closed if no points have been earned or redeemed for a continuous period of 12 months.[12] As Nectar points do not normally "expire", it is possible for cardholders to save towards more expensive rewards, such as train tickets and holidays.

Members[edit]

Current[edit]

Former[edit]

International schemes[edit]

Aimia launched Nectar in Italy in 2010, with retailers including Auchan and UniEuro.[19] The Italian scheme ended in February 2016.[20]

A separate scheme is operated by Cencosud in Chile through a licensing agreement with Aimia.

See also[edit]

References[edit]

  1. ^ a b Litterick, David (4 December 2007). "Aeroplan snaps up Nectar for £368m". The Telegraph. Retrieved 3 March 2018. 
  2. ^ Editorial, Reuters. "UK's Sainsbury's buys Nectar from Aimia for 60 million sterling". 
  3. ^ "UK to get 'biggest' loyalty card scheme". BBC News. 5 June 2002. Retrieved 23 February 2015. 
  4. ^ "Nectar hopes to keep customers sweet". Working Lunch. 5 June 2002. Retrieved 23 February 2015. 
  5. ^ Thomas, Joe (8 February 2010). "Sainsbury's claims biggest UK loyalty scheme with Nectar". Marketing Magazine. Retrieved 23 February 2015. 
  6. ^ Hughes, Thomas (16 August 2017). "Nectar loses huge numbers of customers after announcing partnership deal with the Daily Mail". Evolve Politics. Retrieved 28 August 2017. 
  7. ^ "Nectar - Our response to questions around the Daily Mail partnership". www.nectar.com. Retrieved 2018-06-19. 
  8. ^ Editorial, Reuters. "UK's Sainsbury's buys Nectar from Aimia for 60 million sterling". 
  9. ^ Jahshan, Elias (5 April 2018). "Sainsbury's to trial of complete Nectar revamp". Retail Gazette. Retrieved 12 April 2018. 
  10. ^ Bridge, Sarah (25 October 2014). "Nectar sees sales and profits rocket due to rise in customers eager for money-saving loyalty points and victory in long-running battle with taxman". Mail on Sunday. Retrieved 23 February 2015. 
  11. ^ "General Reward Conditions". Nectar. Archived from the original on 2 June 2015. Retrieved 14 June 2015. 
  12. ^ "Nectar Collector Rules - Collect And Spend Nectar Points on More Than 500 Brands - UK Loyalty Card - Nectar". www.nectar.com. 
  13. ^ Comparison between Nectar and East Coast Rewards Save East Coast Rewards
  14. ^ "Nectar launches into new sector with Mail Newspapers partnership". NewsWire. 16 February 2017. Retrieved 31 March 2017. 
  15. ^ Craven, Neil (4 June 2016). "Homebase set to ditch Nectar loyalty points to focus on cutting prices as its owners launch new Aussie revamp". Mail on Sunday. Retrieved 7 June 2016. 
  16. ^ "Nectar". Vision Express. Archived from the original on 26 January 2015. Retrieved 23 February 2015. 
  17. ^ http://www.nectar.com/shop-at/amazon.eshops
  18. ^ "Changing the way you're rewarded". British Gas. Retrieved 7 September 2017. 
  19. ^ Creevy, Jennifer (11 February 2010). "Nectar programme launches in Italy". Retail Week. Retrieved 23 February 2015. 
  20. ^ "Italian Nectar program to close in February 2016". Aimia. 16 December 2015. Retrieved 28 August 2017. 

External links[edit]