Loyalty Programs

Loyalty programs have been available for some time now, but due to the high cost of deployment and operation, only the large retailers have been able to incorporate it into their business. Loyalty points programs deliver value by providing an incentive in the form of points which can be redeemed against reward vouchers, redeemable by specific retailers.


Loyalty programs are of interest to retailers because they are proven to generate repeat business.


When the UK’s most successful loyalty program, Nectar, was launch in 2002, it was backed by a marketing budget of £50m. The program has since become exclusive to the larger retail household names that have the budget to participate. Our service are designed to enable digital marketing agencies of all sizes to deliver services such as the Nectar reward service without any up front cost, and for a very low monthly fee. By enabling retailers in local community to offer loyalty programs, they are able to provide an incentive for residents to shop within their communities.


The return on investment can be outlined with respect to the Nectar operational model. Nectar generally offers 2 Nectar points for every £1 spent. A £1 reward on the other hand, typically requires the customer to redeem 200 points. In other words, the value of each unit of currency spent by the customer, is 100 times less than the value of the points offered.  This provides significant levels of flexibility for the generation of a range of offers to build loyalty and attract shoppers.