Nectar Case Solutions

In: Business and Management

Submitted By juuuba
Words 490
Pages 2
Assignment questions:

1. What should Justin King do with the program?
In my opinion King should continue with nectar program . Nectar provides Sainsbury with valuable information about their customers that helps keep Sainsbury thriving : In other words * 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 are exchanged for Nectar vouchers * More attainable due to a number of different loyal partners. 3. What should he…...

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