7m relaunched Nectar suffers rewards set-back

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 £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.

Latest from Marketing Week

Marketoonist on being agile

Marketoonist

Tom Fishburne is founder of Marketoon Studios. Follow his work at marketoonist.com or on Twitter @tomfishburne See more of the Marketoonist here

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here