From today, Sainsbury’s is trialling a new Nectar scheme across the Isle of Wight. The new system will reward loyalty, but not simply based on how much you spend in a Sainsbury’s store.
The scheme will also monitor how frequently you shop at Sainsbury’s and how long you’ve been shopping with the retailer. The more loyal you are, the more value you will get from the scheme.
“The thinking at Sainsbury’s goes like this,” says Anika Newjoto, editor of loyalty point specialist website Shopper Points. “Giving a flat ‘one Nectar point per £1 spent’ does not reflect your personal loyalty to the supermarket. If you spend £30 per week – but that is your entire food bill – then you are more loyal than someone who has a £200 weekly food bill, but only spends half of it at Sainsbury’s.”
This is because Sainsbury’s will look at what a shopper has bought to check whether it is a full shop or not. For example, if fresh fruit or cleaning products are missing, it will assume that the shopper who has spent £100 a week has bought these elsewhere.
How the new scheme works
You will need to download a new Nectar smartphone app, which stores your card in it, so you’ll need to scan the app at the till.
No Nectar points will be earned based on how much you spend. Instead, the app will select various bonus points offers for you based on what you frequently purchase. The average customer will have nine offers at any one time.
You can reject offers if they don’t suit you, meaning over time the offers you see should be on exactly the things you want a discount on.
The more you shop in Sainsbury’s – and scan that app at the till – then the more generous the offers will become. So one person may earn 50 Nectar points for purchasing a loaf of bread, but another more loyal customer may earn 100 points.
“We are excited to be trialling this new Nectar scheme, which gives more rewards to our loyal customers,” says Helen Hunter, director of innovation at Sainsbury’s.
“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.”
If you don’t have a smartphone, then you will receive your offers in a weekly email and you’ll need to scan your Nectar card when you shop.
What about my existing points?
Nectar points themselves aren’t changing, so 500 points will still be worth £2.50 and existing balances won’t be affected. It’s just the way you earn those points that is changing, and only on the Isle of Wight for now.
“We’ll be actively listening to customers during the trial so that we can shape new Nectar as we learn,” says Miss Hunter.
Is it a good idea?
“My concern is that Sainsbury’s is assuming that shoppers are willing to spend time going through the app before every shopping trip to see what offers are there,” says Miss Newjoto.
“I don’t think life works like that. People have busy lives and I’m not sure they want to add an extra routine to their day to day tasks.”
The other problem is that new shoppers – who will only receive small points offers until their loyalty builds – may be put off because the initial rewards are so small.
The trial is set to run indefinitely on the Isle of Wight, but whether it ever makes it off the island remains to be seen.
Don't like it
It doesn't work. I select all items. Do the shop and then the offers are still showing on the app days later as not being used. It's total rubbish.
Getting the points credited
Last week the points I'd selected on my email did not appear on my bill. This week I asked the assistant why (having made purchases from this week's selection) and she said they were added over night. I cannot find any record of this. Have they been added. I do not have a smart phone with apps! How do I get them?
I don't have a smartphone
I am of the older generation who does not have, or want, a smartphone!
It annoys me greatly the way companies just ASSUME everyone has a smartphone. They don't.
So, it looks like my best option is going to be to ditch Sainsburys and to shop in ASDA or Lidl instead.
about the way you have changed the nectar points
This is a rubbish idea as not every one has a smart phone to use this this app , not all of us oaps are using computers and smart phone , i think this idea should be scrapped , , i think this idea will lose Salisbury a lot of customer's and turn to LIDL and ASDA . so please think of the old people .