I would like to refute key points in David Miller’s letter, “Loyalty runs out of honey, try intrinsic value” (MW last week). Miller states that Nectar has not encouraged cross-shopping between Nectar sponsors and that most collectors are passive. He is wrong on both counts.
Cross-shopping has shown a continual rise since we launched Nectar nearly three years ago. When we launched, only 20 per cent of our collectors used more than one sponsor. To date, over 80 per cent shop at two or more sponsors, and a third shop at four or more sponsors. Cross-shopping is a key measure of success for Nectar, our current rates are aligned with our business model and we anticipate this cross-shopping rate to rise. These figures are factual as opposed to Mr Miller’s “opinion”.
To answer his point on “passive collectors”, I confirm that our collector base has been more active and engaged in the past month than at any other time in our programme. In addition, about £500m-worth of rewards have been given to collectors, with seven out of ten collectors having made a redemption within the programme. Hardly a sign of passivity!
Finally, I would like to finish with a point made by TGI in your magazine (MW June 2): “TGI has found that Nectar members’ cross-loyalty to other Nectar stores has increased over time. In 2002, 1.25 million women who held a Nectar card and did their regular main shop at Sainsbury’s had also bought at least one item from Debenhams in the past year. By 2004, this had risen by some 20 per cent to about 1.5 million.”
Loyalty Management UK