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As a regular Sainsbury's shopper I am a bit put out by this new Nectar Loyalty Card. I was quite happy, every now and then, to have my grocery bill reduced by redeeming my points. Now it is all so much more complicated.
Of course, when you see the form you have to fill out in order to replace the existing Sainsbury's Reward Card, it all begins to make sense. Apart from anything else, this is a massive data collection exercise. And before you think that there is any privilege attached to being either a Reward Card or Nectar Card holder, think again as you pass the large containers stacked high with application forms waiting for just about anyone to fill them in.
The launch of Nectar is viewed by many as Sainsbury's latest attempt to catch up with Tesco which, long ago, stole a march on other retail multiples with its refined use of data gleaned from its Clubcard. But the launch also puts the spotlight on the whole area of promotions, both strategic and tactical.
Programme manipulation
Sainsbury's admitted that after it terminated the Air Miles contract - and no one is quite sure who got rid of whom - sales growth slowed. It is now hoping that the Nectar Loyalty Card will reverse that situation. Reward cards are generally seen as strategic, long-term promotional programmes, but, as the Tesco Clubcard shows, it is how you manipulate the programme that really matters.
The great difficulty in gauging whether promotions work is in the actual definition. If, as Promotional Risk Management director Brian Gibb says: "Sales promotion is a mechanism that persuades you as a consumer to buy that product at point of purchase," then even a Buy One Get One Free (Bogof) is a valid sales promotion.
There are many, however, who believe that Bogofs have no place in the sales promotion armoury and anything that does not add value to the brand should not be considered part of a promotional programme.
Managing director of Communicator, Paul...