Loyalty Schemes Shoppers Stop
Loyalty Schemes Shoppers Stop
Loyalty Schemes Shoppers Stop
Loyalty Schemes
Types of Loyalty Scheme, eg:
Account Cards (eg. Marks & Spencer) Loyalty Rewards (eg. B to B)
Difficult to Get Out of such schemes (once in always in, well at least for a long time)
If Scale, Customer Benefits and Other Requirements are Not Achieved Then Scheme May Be an Expensive failure.
Loyalty Partnerships
Source: Iain Pringle Affinity Solutions IIR Conference, October 2002
Advantages:
Existing customer bases & infrastructure Widely understood mechanics Frequent customer interaction Turn key solution Link with aspirational brands Brand Exclusivity
All you have to do is hand over your Nectar card whenever you shop at Sainsbury's, Debenhams and wherever you see the Nectar sign at BP*. You can also earn points every time you use your Barclaycard*. And if you pay with your Barclaycard at Sainsbury's, Debenhams and BP you'll earn two lots of points! You can also earn points when you shop by phone or on the internet*. And from time to time you'll be able to earn bonus points to boost your total... which means you could enjoy even more great rewards.
Disadvantages:
Builds loyalty to a currency, not a brand High cost Training and integration issues Anonymity Few opportunities left Nectar ?
Loyalty Partnerships
Source: Iain Pringle Affinity Solutions IIR Conference, October 2002
Three easy ways to get your rewards Exchanging points for Nectar vouchers You will need to exchange the Nectar points on your card for Nectar vouchers to claim many of the rewards that are available. Each voucher represents 500 Nectar points and you can get them at the till of Your Sainsburys Home Store* or by calling the Nectar Helpline on 0870 4 100 100. Then just fill in the back of the vouchers and present them to the relevant reward supplier. Booking with Nectar Some rewards like flights are available only by calling the Nectar Helpline on 0870 4 100 100. Please have your Nectar card with you when you call and your points will be deducted automatically. Instant redemption In some instances theres no need for a Nectar voucher. Points can be automatically deducted when your card is swiped.
Loyalty Partnerships
Source: Iain Pringle Affinity Solutions IIR Conference, October 2002
Rewards Partners
There are far more rewards partners than points partners. Therefore, customers can use their benefits in a huge range of places for entertainment, travel, shopping etc.
Loyalty Partnerships
Source: Iain Pringle Affinity Solutions IIR Conference, October 2002
Problems
People who shop at Sainsburys, get vouchers to buy petrol at sainsburys and then get nectar points when they buy petrol at sainsburys, so are not only unlikely to buy BP but also get two lots of rewards for the same purchase. A large number of customers already have Barclaycard and shop at Sainsburys and even at Debenhams ie. their loyalty is already assured