...MKTG7501 Consumer Behaviour “Loyalty cards cost shoppers millions” Introduction - Everyday Reward Card What is “Everyday Rewards Card”? The Everyday Rewards Card is an initiative from Woolworths that provide a series of benefit rewards to their customers. Such as fuel saving offers, exclusive offers and discounts of their products. Also, now it’s able to earn Qantas Frequent Flyer points when you shopping in Woolworths, BIG W, Dick Smith and Tandy stores. How to accumulate reward points? You can earn one point per dollar when spent over $30 in one transaction when you shop in Woolworths, BIG W and one point per dollar when spent over $50 in one transaction when you shop in the Dick Smith and Tandy stores. Pros & Cons of using Everyday Rewards Card Advantages There are three major advantages that Woolworths offers its rewards card holders : save 4c per litre on fuel at Caltex petrol stations, receive exclusive offers and discounts from all participating retailers, and earn Qantas frequent flyer points for a free flight ticket. Disadvantages According to a recent report from a consumer group Choice, consumers will unconsciously spend more than what they can gain from these kind of loyalty programs. First of all, paybacks are very "poor". Woolworths Everyday Rewards program averagely offers less than $1 return for every $100 a shopper spends. And if anyone want to collect points for free flight tickets, he or she will need to spend at least $22,030 to gain...
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...Table of Contents 1. INTRODUCTION 3 2. PROCEDURES 3 3. FINDINGS 3 3.1 Customer Service Standards 3 3.2 Identifying and meeting the expectations of key customers 4 3.3 Maintaining Customer Aftercare 5 3.4 Obtaining and monitoring qualitive and quantitive customer feedback 5 3.5 Evaluation 6 4 Conclusion 7 5 Recommendations 7 1. INTRODUCTION This report is being produced at the request of Annette Wilson of Wilson’s Consulting. The report is to evaluate the Customer Care Strategy for Sainsbury’s. The reason for choosing this organisation is because of their quality of products and convenience regarding the location of the store. Sainsbury’s is part of J Sainsbury PLC, which was founded in 1869 in London by John James Sainsbury and his wife Mary Ann Sainsbury. They now have over 1,200 supermarkets and convenience stores and have now grown to be one of the largest retailers in the U.K. Sainsbury’s state that they “put their customers at the heart of everything they do”. (Sainsbury’s, 2015). They state that their “values and ethos have never changed” (Sainsbury’s, 2015) however they are aware that the retail industry has changed over the years therefore they created a new strategy to continue to be known for excellent customer service and to evolve their organisation so that they can continue to provide for their customers by being able to satisfy the customers needs with regards to “what customers want, when, where and how they want...
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...A Competitive Analysis on Tesco Introduction Tesco and Sainsburys rivalry goes way back and has been going on for over decades now. Tesco was founded in 1919 by a man named Jack Cohen. Its very first store opened in 1929 by T.E. Stockwell, and in 1932 Tesco became a PLC. Sainsburys started in 1869 and is part of the “multi-national company J Sainsbury in both the UK and the USA” (2008). The main focus of this essay is analysing Tesco against Sainsburys in their performance when it comes to marketing and how well they are market oriented and sales orientated, their ability to understand customers and its consumers and also their marketing mix. Market orientation for Tesco and Sainsburys is how they as a business both choose to focus on identifying and meeting their customers’ needs whether it be stated or hidden. This is quite different to the sales orientation because with sales orientation, Tesco and Sainsburys focus on promoting sales of whatever a company supplies or makes through sales calls and marketing. Tesco tend to place a positive image on their customers through their good customer service and their quick responses to customer needs. Tesco also tend to ensure that they are offering their customers as much help as possible in and around their store. This is how Tesco uses excellent market orientation. They also do this through refurbishment in and around the store which is their way of improving their service levels. After a customer makes a purchase or refund...
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...1. Is there any evidence that the program pays out for Sainsbury? Elaborate. Sainsbury’s had been losing market share until partnering with Nectar and then became U.K.’s second largest supermarket chain after the first year of using the program. They also discovered weekly spending was 40% greater among people collecting points from several sponsors than only from Sainsbury’s. A study suggested that Sainsbury’s gained market share from non-Nectar retailers through gasoline sales due to the competition between BP and Sainsbury’s with Nectar. Sainsbury’s benefited from the Nectar program by: · Increasing the frequency of customer’s visits and spending more per transaction · Acquiring new customers · Retaining current customers · Up-selling to customers to buy higher margin products While Sainsbury’s was the dominant sponsor, there had been a steady decrease in its importance. In the launch month, four out of five collectors earned points from Sainsbury’s alone. Within six months, half had earned points from a second sponsor and at the anniversary 30% earned from one, 60% from two and 10% from three sponsors. Spending at Sainsbury’s was greater among collectors earning points from multiple sources than from Sainsbury’s alone. Weekly spending at Sainsbury’s was 40% greater when people collected from them and two other sponsors than from Sainsbury’s alone. It also became apparent that collectors who earned points from multiple sponsors...
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...Is there any evidence that the program pays out for Sainsbury? Elaborate. Yes, there is evidence in the case that Nectar’s loyalty program pays out for Sainsbury's in numerous ways. Nectar helped Sainsbury's acquire customers. For instance, Nectar customers who are not Sainsbury customers may have another supermarket close to their home, such as Tesco. However, because these shoppers have a Nectar card, they are more likely to travel further for their grocery shopping in order to obtain loyalty points for their Nectar card. Additionally, Nectar allows Sainsbury to target members who are not currently shopping at Sainsbury’s but live close by a location. Typically, the retailer would have a very hard time connecting these targeted individuals, and subsequently converting them to regular shoppers. However, since Nectar has their information in its database, Nectar can target them, yielding a much higher acquisition rate at a much lower cost. The Nectar network helps Sainsbury’s retain customers. Customers are more likely to be loyal to Sainsbury’s as a brand because they receive loyalty points in return for their purchases. Nectar’s loyalty program is more effective than a stand alone program run by Sainsbury. The weekly spending at Sainsbury’s was 40% greater among shoppers collecting from the supermarket and two other sponsors. Shoppers value the ability earn points at multiple retailers, and become loyal to those retailers in the process. Shoppers who participate in these...
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...5: Case 5: Promotion Decisions MAKING LOYALTY PAY NAME STUDENT ID Nancy Kumari S11013306 Saher Buksh S01007626 Aditya Raniga S11052046 Table of Contents CASE BACKGROUND 2 NECTAR 2 Nectar Promotions: 3 SAINSBURY 4 Therefore the aim of this case analysis is to find out: 4 CUSTOMER REGISTRATION 5 TWO METHODS OF REDEEMING POINTS 5 COMPETITION IN THE UK GROCERY RETAIL INDUSTRY 6 COMPARISION WITH COMPETITORS 7 SITUATIONAL ANALYSIS 8 CONSUMER PERCEPTION OF NECTAR PROGRAM 8 SPONSOR PERCEPTION OF NECTAR PROGRAM 9 SHOULD SAINSBURY CONTINUE WITH NECTAR? 10 SHOULD SAINSBURY HAVE ITS OWN LOYALTY PROGRAM? 12 SHOULD SAINSBURY DISCONTINUE WITH THE CURRENT LOYALTY PROGRAM & DIVERT FUNDS TO NON-LOYALTY PROGRAMS 14 CUSTOMER LOYALTY PROGRAM IN FIJI 16 RECOMMENDATION 17 CONCLUSION 20 BIBLIOGRAPHY 21 CASE BACKGROUND NECTAR • The Nectar loyalty program is the largest loyalty program in Britain. • It was launched by Loyalty Management UK (LMUK and chaired by Air Miles co-founder Keith Mills). • Nectar opened for business in 2002. • With reference to various individual retail loyalty programs, Keith Mills,Gierkink, and further members of the LMUK team undertook the decision to search for an assembly of retailers who had their individual reward programs however were not content with their performance and could enhance their performance by combining with a multi partner loyalty scheme. • The initial four sponsors of LMUK were Sainsbury...
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...9-505-031 REV: DECEMBER 5, 2005 JOHN DEIGHTON Nectar: Making Loyalty Pay Persuading British households to do anything was not easy, yet, in the 18 months leading up to March 2004, Loyalty Management UK (LMUK) had induced over 54% of them to try collecting Nectar points and 40% to persist, making Nectar Britain’s largest rewards program. Each week it added 50,000 new members (whom Nectar called collectors). Rob Gierkink, CEO of LMUK, was pleased with his team’s accomplishment. In March 2004 Justin King had just taken over as group chief executive at Sainsbury’s, the supermarket chain that was Nectar’s largest issuer of points. He saw that more than half of Sainsbury’s 240 million pound (₤) annual marketing budget went to Nectar and said: “Nectar represents a significant investment for Sainsbury’s, and I can’t help but feel that if we put the investment into more staff in our stores we’d see a better return. I was part of the senior management team that turned around the ASDA supermarket chain before it was sold to Wal-Mart, and the changes we made at ASDA were all about price and value for money. ASDA didn’t have a loyalty program.” He continued: But I do understand the value of knowing more about what our customers are doing dayto-day and this is part of the value we get from Nectar. We use the Nectar data on our customers to help us determine which stock to carry in which stores. The Nectar data also allows us to do much better and more targeted marketing...
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...International Journal of Retail & Distribution Management Building brand webs: Customer relationship management through the Tesco Clubcard loyalty scheme Jennifer Rowley Article information: To cite this document: Jennifer Rowley, (2005),"Building brand webs", International Journal of Retail & Distribution Management, Vol. 33 Iss 3 pp. 194 - 206 Permanent link to this document: http://dx.doi.org/10.1108/09590550510588361 Downloaded on: 15 September 2014, At: 19:08 (PT) References: this document contains references to 37 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 17452 times since 2006* Downloaded by UNIVERSITI MALAYSIA SABAH At 19:08 15 September 2014 (PT) Users who downloaded this article also downloaded: Jason J. Turner, Karen Wilson, (2006),"Grocery loyalty: Tesco Clubcard and its impact on loyalty", British Food Journal, Vol. 108 Iss 11 pp. 958-964 Mark D. Uncles, Grahame R. Dowling, Kathy Hammond, (2003),"Customer loyalty and customer loyalty programs", Journal of Consumer Marketing, Vol. 20 Iss 4 pp. 294-316 Jennifer Rowley, (2007),"Reconceptualising the strategic role of loyalty schemes", Journal of Consumer Marketing, Vol. 24 Iss 6 pp. 366-374 Access to this document was granted through an Emerald subscription provided by 313615 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about...
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...* 2.9% raise in revenue Cost is dispersed amongst the partners * Increase in number of buyers due to a large number of partners Cons: * Costs more than 120 million pounds towards the loyalty program * Company is competing with partners on same commodities * Benefits sometimes get split due to similar offering by partners * No complete control over its nectar loyalty program * The amount of inactive collectors has increased from 0 to 12%, using it once then abandoning in it. * Sainsbury’s CRM may be stronger if they had their own loyalty program 2. What should Rob Gierkink do with the program to keep Sainsbury’s happy? Sainsbury’s advantages if it remains associated with the Nectar Program: * The program’s management is outsourced to LMUK, which allows its partners to concentrate on their own business * By having a share cost of multiple partners, the cost would be greatly reduced * It helps with the segmentation of its customers by analyzing their purchase across a section of different products which was purchased in many different outlets * Expand company to different countries where Sainsbury’s is not present * Award more points to Sainsbury's' customers when products are purchased Customer Advantages: * Nectar card holders will collect points and redeem them for flights, meals, vouchers, etc. * make rewards more attainable by pooling in points from a variety of firms rather than single merchant Nectar points...
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...Nectar Case Marketing 530 - Team 3 1. Is there any evidence that the program pays out for Sainsbury? Elaborate. * Nectar collected information on customers that helped Sainsbury’s to determine what stock to carry in which stores and to do more targeted marketing to customers. * Sainsbury’s had been losing market share, but after using Nectar’s rewards coalition their customers were spending more money than when they were using Sainsbury’s stand-alone points program. In fact, weekly spending was 40% greater at Sainsbury’s among people collecting points from the store and two other sponsors in the program. In addition, with each new added sponsor the amount spent at Sainsbury’s increased. For customers that earned points from 5 sponsors, their spending at the grocery store increased by 100%. * The benefit of using Nectar was to get customers to spend more per transaction and more frequently at the store, acquire customers that were customers of other Nectar partners, retain current customers, and up-sell customers higher margin products through incentives from the program. * The rewards program increased the competition for selling gas between Sainsbury’s and BP, but at the same time helped both companies take market share from retailers that did not offer Nectar points. * Conversely, though the majority of point were earned at Sansbury’s, there was a steady decrease in its importance throughout the year. Originally four out of five users redeemed...
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...Journal Article: Building Brand Webs: Customer Relationship Management Through the Tesco Clubcard Loyalty Scheme Group Topic: Customer Relations and the Food Industry In this journal article, the author, Rowley, examines the use of loyalty schemes and the role that they have in developing a customer relationship with the brand distributing, or communicating with the loyalty scheme. The role of loyalty schemes in branding is also examined alongside their effectiveness of keeping customers loyal. A central argument that is portrayed is ‘Do loyalty schemes work?’ (Rowley, 2005:194). This is assessed on their effectiveness on the way the brand or organisation is perceived and the way customers behave towards the brand. The theory that Rowley basis her argument around is that ‘relationship marketing acknowledges that a stable customer base is a core business asset’ (2005:195). The role of theory in this instance is used to help understand the use of loyalty schemes and the relationship they build with the customer and the brand. So by a brand opting to use a loyalty scheme, they can effectively get to know their customers. This can result in a stable customer base for them, therefore benefiting the business or brand in many ways. Another theory that is used in this article is that customer loyalty cannot be bought through such schemes, rather it is developed overtime through a sense of customer satisfaction and value. A number of different perspectives are...
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...1. Is there any evidence that the program pays out for Sainsbury? Elaborate. * Nectar collected information on customers that helped Sainsbury’s to determine what stock to carry in which stores and to do more targeted marketing to customers. * Sainsbury’s had been losing market share, but after using Nectar’s rewards coalition their customers were spending more money than when they were using Sainsbury’s stand-alone points program. In fact, weekly spending was 40% greater at Sainsbury’s among people collecting points from the store and two other sponsors in the program. In addition, with each new added sponsor the amount spent at Sainsbury’s increased. For customers that earned points from 5 sponsors, their spending at the grocery store increased by 100%. * The benefit of using Nectar was to get customers to spend more per transaction and more frequently at the store, acquire customers that were customers of other Nectar partners, retain current customers, and up-sell customers higher margin products through incentives from the program. * The rewards program increased the competition for selling gas between Sainsbury’s and BP, but at the same time helped both companies take market share from retailers that did not offer Nectar points. * Conversely, though the majority of point were earned at Sansbury’s, there was a steady decrease in its importance throughout the year. Originally four out of five users redeemed at Sansbury’s, but throughout the year...
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...Jason Longo, Thomas Kunis CMGT/400 February 9, 2015 Robert Quintin Introduction Team C has been tasked to develop a Customer Loyalty Program for frequent shoppers at Kudler Fine Foods. The program will consist of loyalty points that may be used by the frequent shoppers to purchase high value merchandise from the vendors of the loyalty points partner program. The team has also been tasked to insure that the information collected from the frequent shoppers is securely protected from outsiders and others that may make the system vulnerable to threats. Team C will cover each step within the system development life cycle to cover all systems affected and mitigation of risks and will at properly satisfy the needs of Kudler. Outline of Customer Loyalty Program Kudler Fine Foods prides itself on delivering the finest in specialty foods from around the world. In continuing with the tradition of providing the best for their customers Kudler has decided to develop a Customer Loyalty Program. This program will consist of a loyalty points program with said point being accrued from purchases made from Kudler. The customer will have to sign up for the program and after doing so will have their purchases tracked and with each purchase will collect loyalty points that can later be used towards high value items provided by vendors of a loyalty points partner program. The reasoning for not having points used as a discount on in store purchases is because “price is not the primary...
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...of a startup company in an emerging industry. Someone with determination, who can lead a team, and has short term and long term goals. This manager must have the interpersonal, informational, and decisional roles a great manager needs. This person is Dr. Annie Lim, CEO of Ferret Card, a mobile loyalty rewards program. In order to fully comprehend the complexity of Dr. Lim’s role, one must understand the basics of the company and industry. With the growing combination of social media and smart phones, founder and primary stockholder Matthew T. introduced Ferret Card, a universal mobile rewards program. Similar to Air Miles, Shopper’s Optimum, or a Scene Card, Ferret Card is a loyalty rewards platform to collect rewards from merchants. Designed for the small merchant, the application (or loyalty card) is downloaded from a device’s app store on Apple or Android products and allows these merchant’s customers to earn rewards from their stores. The Ferret Card application can hold many different merchants and many different points for each store. This application eliminates the need for a consumer to have a wallet full of loyalty cards. Matthew T. appointed Dr. Lim as the CEO of Ferret Card. As an entrepreneur and life coach, Dr Lim is the perfect person to make things happen. She hired a small administrative, IT, and sales staff. In order to motivate the team she hosted weekly group meetings for the whole team to share their successes and any downfalls they experienced...
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...but they also have three sister stores in: La Jolla, Del Mar, and Encinitas where a customer can find in California(Apollo Groups, 2005). Kudler Fine foods was founded and is managed by Kathy Kudler, who is requesting a program that will track customers information on their purchases that they make at any of the three stores using a frequent shopper program. This program will award loyalty points similar to other program such as: Kroger, speedway, or chase banking when a customer uses their card at a retail store they will earn points on their loyalty card. A customer who makes a purchase using a loyalty card that will be provided through Kudler Fine food will receive loyalty points, but this program will only be for those customers that have signed up for it and wish to partake in the program. The customers participating, their purchases will be monitored and will be converted into loyalty points that they can later exchange through an outside service that Kudler will partner with so that a customer can exchange points for gifts, vacations, gift certificates, and even money. Using Chase loyalty as an example, they use a service over the web that a customer can check online and for every dollar that a person spends you receive a dollar and for some merchants four dollars. A customer can go online and see what they can exchange these points for, so, for...
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