The £7m relaunch of Nectar as a reward scheme has backfired after the loyalty scheme was hit by a spate of complaints from customers who have failed to get their promised “rewards”.
The revamped Nectar, which was launched last summer, was coupled with its biggest spend since it was introduced in 2002, in a bid to shed its image as a discount programme.
The relaunch included sending new Nectar cards to over 8 million of its 12.5 million customers offering a range of rewards including “pamper and indulgent” treats and adventures. The “treats” included spa days and adventure visits to places such as Warwick Castle.
But complaints have poured in from customers who did not get their “preferred” reward vouchers.
A spokeswoman for Loyalty Management Group (LMG) UK confirms there have been complaints from “some” customers who did not get the options they asked for, but were offered an “alternative”.
She adds: “The demand for the pamper treats far exceeded the adventure giveaways and therefore some customers were offered alternatives. The Royal Mail strike last summer affected our programme too.”
The spokeswoman says Nectar has since increased the number of “pamper treats” and also put a note on its website apologising to customers who failed to get the rewards the first time around. More seasonal offerings, such as cruises, have now been added to the scheme.
LMG, which was launched in 2002 by Air Miles founder Sir Keith Mills, was sold by Mills last December in a £368m deal with Canadian marketing company, Aeroplan. It was reported that Mills pocketed £187.68m as part of the deal, and senior executives at LMG shared £47.84m. A further £132.48m went to private equity company Warburg Pincus.