Sainsbury's revamps Nectar in bid to ‘redefine loyalty’

The grocer said the new scheme will allow it to reward customers based on how long they have shopped with the business and how frequently they do so, rather than just looking at how much they spend.

Under the revamped Nectar system, shoppers will no longer receive one point for every pound they spend in Sainsbury’s.

Instead, customers will be sent unique offers based on the items they purchase most often in Sainsbury’s supermarkets, convenience stores or online.

For instance, consumers could be offered 20 points for buying a box of 12 eggs, or 50 points for purchasing their favourite bottle of Prosecco.

The offers, which will be displayed to customers via a new smartphone app, will have a timespan in which to be used.

However, shoppers will be able to ‘favourite’ up to five offers, which they will be able to redeem every time they shop.

More loyal customers, who may also bank with Sainsbury’s or have an insurance policy with the business, will receive “more value” from Nectar in the form of bigger rewards, the grocer said.

The revamped loyalty scheme, which will be trialled on the Isle of Wight “indefinitely” from today, has been launched just two months after Sainsbury’s splashed out £60m to acquire Nectar from Aimia.

Sainsbury’s director of innovation Helen Hunter said: “We are excited to be trialling this new Nectar scheme which gives more rewards to our loyal customers.

“By giving them the option to choose the products on which they earn Nectar and awarding points based on loyalty, we’ll be able to show our most valuable customers how important they are to us.

“We’ll be actively listening to customers during the trial so that we can shape new Nectar as we learn.”

Sainsbury’s said the changes would not impact Nectar’s other partners, which include Caffe Nero, Pizza Express and Vue Cinemas.

Customers’ points totals will also be worth the same amount, with every 500 points collected worth £2.50 when redeemed.