The Nectar loyalty scheme has one of the broadest audiences of any UK brand - from hip young things to grannies - in half the UK’s 22m households. So how do you migrate cardholders online when you know direct mail still works for large segments of your database?
Loyalty schemes in the recession
Q: Is redemption of Nectar coupons higher because of recession?
People are definitely more incentive-hungry right now and are seeing high redemption rates, but then this is due to a number of factors, including better targeting.
We have seen a growth in the programme, with over 500,000 new collectors in the last six months and more transactions this year than previously - there are 21 Nectar card swipes every second of every day, compared to 19 a year ago. So we’re definitely seeing an increase in Nectar card usage.
We ran some research with our collectors in March to understand how the tough economic conditions were impacting them. Over half of our new collectors said the recession was a factor in signing up to Nectar and amongst those who have been with us longer term, two in five said the card is more valuable to them than this time last year.
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