2. It’s been nearly 30 years since loyalty schemes first hit the UK high street. How do the first
steps into a previously unknown territory compare to the leaps and bounds loyalty
schemes are making today? Clearly Humans are complex beings, their buying behaviour
can be hard to pin down and with the concept of loyalty being so tied to emotion how do
we understand its complexities to better understand our business?
This eBook lists the loyalty schemes we think should be mentioned in this years top ten.
Alongside some major players we have some lesser known schemes, all listed for their
success or ingenuity.
How do the major players maintain customer engagement and loyalty? What are the new
loyalty strategies businesses are using to engage and retain customers? As we move into
an age where omni-channel is vital, where does loyalty place itself?
Read on to find out about the schemes, the companies and what they’ve been offering.
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A notable name on the loyalty circuit, Nectar is owned by global loyalty leader Aimia
with the goal to be the largest loyalty programme in the UK, which it has succeeded in
doing. This success saw rapid growth from 4 to 14 partners in just two years. Its
evolving brand and focus on simplicity meant consistent growth and success for the
scheme, one that shows no signs of stopping any time soon. More partners are joining
and opportunities are opening all the time. Recently Nectar formed a ground-breaking
partnership with Oxfam to reward those donating to the charity. Aimia explain that
their fundamental success with Nectar has been because of their focus on consumer
data and “how [they] gain insight from it, how [they] use it to communicate with
members. Data fuels everything [they] do.”
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• UK’s largest loyalty programme with over 19 million members
• Given out £2billion in its 11 years of existence
• Had four initial founders of Sainsbury’s, Debenhams, BP, and Barclaycard (now replaced
with American Express) - now has 17 partners involved in the service
• Over last 10 years, Nectar cards have been swiped 24 times a second
• Customers gain points at two per £1 spent and can be redeemed at various partners both
in-store and online at over 500 shops.
Terrapinn.com/go/customer-festival
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Launched in 1995 by Dunhumby, and then having had a re-launch and rebrand in 2005, Tesco
Clubcard is one of the major players in the loyalty card sector. Tesco say this is due to placing
understanding communication with their customers at the forefront of their marketing
strategy. Its customer-centric approach helped them realise that loyalty alone isn’t enough to
retain a customer, they want rewards instead. Clubcard holders get awarded one point for
every £1 spent, and this can be doubled on special offers. Redeeming points in store also
makes them worth four times their value, allowing for a hefty discount on a shop. Because of
its success, Tesco has now unveiled a free-to-use streaming service known as Clubcard TV that
makes use of Tesco’s BlinkBox video streaming platform.
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• By 2012, scheme had 15 million members
• Clubcard is listed as the main reason for why customers shop there over other brands
• Total value of points redeemed in 2012 amounted to £780m
• Clubcard has made Tesco one of the biggest online grocers
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One of the most traditional loyalty schemes on the market, British Airways Loyalty Scheme
runs from Bronze Tier club members, through Silver and up to Gold. Being part of the
frequent flyers club offers users the usual bonus of frequent flyer miles, upgrades and a
range of discounts and in-lounge spa treatments. The higher your tier, the more points
you gain and therefore you’ll be rewarded far more frequently. The introduction of Avios
points helped create a new image for the brand as general product purchases could be
used towards gaining points for use with British Airway’s scheme. The rebrand also helped
create a closer bond between BA and their customers as you no longer had to pay a
premium for their rewards service.
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• Seven members of the same household can collect and share points
• Long-standing scheme that was re-launched in 2012 with a new look
• Introduced Avios points in 2012 to help revitalise the image and create brand engagement
• Introduction of a Bronze Tier to make it more accessible to all with a lower cost
Terrapinn.com/go/customer-festival
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Designed to capture customer details and insight into what people are ordering, as well as
provide feedback as to what they would like Starbucks to offer, the My Starbucks Rewards
scheme has been very lucrative for the coffee company. The mobile app allows customers to
not only order drinks, but check their balance in a Starbucks mobile wallet and loyalty points.
It’s wonderfully simple and that’s its big selling point. They’re even aiming to double
membership though new features. By the end of the fiscal year they expect to have 9 million
members, compared to the 4.5 million at the end of October 2012.
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• Every drink purchase grants you one star, with every 15 stars you get yourself a free drink
• Gaining 50 stars places you into the ‘golden tier’ of customers where benefits such as free
shots or syrups regularly occur.
• Mobile app allows customers to purchase via mobile, thus reducing the time needed to
queue and wait
• Adds around 80,000 new members a week
• Money loaded onto cards – through new activations and card reloads – increased 32 per
cent over Q2 2012.
Terrapinn.com/go/customer-festival