Digital Transformation of Nectar's Loyalty Programme
Applicable Functions
- Sales & Marketing
About The Customer
Nectar is a loyalty programme that was traditionally based on a 'plastic and paper' model. The company has a wide range of partners and is used by millions of customers to earn and redeem points on purchases. Nectar's most loyal and valuable partner is Sainsbury’s, which acquired the company in 2018. The company's goal is to make everyday life a little sweeter for its customers, and it aims to achieve this by understanding its customers better and offering a more personalised, digital experience.
The Challenge
The challenge was to transform Nectar, an established 'plastic and paper' loyalty programme, into a digitally enabled proposition. The need for modernisation was urgent, and a new path towards digitisation was required, supported by a new brand purpose: 'Making everyday life a little sweeter'. However, the implementation of this transformation was dependent on Nectar's partners, some of whom embraced the opportunity, while others viewed Nectar merely as a currency. This situation necessitated a change, which came in early 2018 when Sainsbury’s acquired Nectar, uniting the company with its most loyal and valuable partner.
The Solution
Nectar set out four transformation pillars: a return to simplicity, an enhanced proposition based on better customer understanding, a digital and personalised future, and a new, bold and modern expression of the brand. The company streamlined key partners, embarked on a comprehensive segmentation project, and launched a new brand identity along with a radical new app. To communicate these changes, in October 2019, Nectar launched its biggest advertising campaign since 2002, encouraging customers to 'get their Nectar on'. The campaign was successful, with the new app topping the download charts on the day the TV campaign broke, and by the end of 2019, it had been downloaded over 3,277,900 times.
Operational Impact
Quantitative Benefit
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