LMG poised to revamp Nectar loyalty strategy

Nectar, the biggest loyalty scheme in the UK, is understood to be reconsidering its business model amid fears consumers are not fully using their reward points.

The company has approached several agencies asking for views on the future of loyalty schemes in the UK. It is likely that it will hold a below-the-line pitch before the end of the year or early in 2007.

A Nectar spokeswoman says: “We are in the very early stages of talking to agencies about reinvigorating our brand. We want to better understand consumer perceptions of Nectar.”

Nectar’s parent company Loyalty Management Group (LMG) is gearing up for a major, global roll-out of the Nectar scheme after its apparent success in the UK (MW January 19).

Nectar has more than 50% market penetration in the UK and it wants to launch the brand into markets such as the US, Japan, Germany and Italy.

LMG appointed customer marketing director John Sheekey as marketing director in the summer, following the departure of Richard Campbell.

Campbell, who has been the company’s marketing director since it launched Nectar in 2002, left without a job to go to. Nectar launched with founding sponsors Sainsbury’s, BP, Debenhams and Barclaycard.

Nectar has been using animated characters The Nectars in its advertising since April. WCRS handles the brand’s advertising, Starcom its media and Barraclough Edwards Chamberlain is its direct marketing agency. Direct marketing shop Keevil Barton Kershaw is also on the company’s roster?

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