Saturday 11 April is No to Nectar day! Why is that? Today is the day that Sainsbury's have changed their standard Nectar earning rate from two points per pound to just one point per pound. This is a permanent change and could mean that it takes twice as long to earn anything under Nectar.
They're promising more promotions and bonuses but as promotions are only on certain items it means you could still be worse off. Although Tesco Clubcard also only offers one point per pound a Clubcard point is worth 1p base value whereas a Nectar point is only worth half a pence base value.
This means on the base value alone, Nectar is now worth half the value of Tesco Clubcard. With Nectar you'll now need to spend £1000 at Sainsbury's to get £5 back.
At the moment other retailers are still earning at their existing rate, only Sainsbury's have made the change, however, if users accept the change then it's possible that the other partners follow suit.
What are we here for?
- Raise awareness of the devaluation of the Nectar scheme
- Offer alternatives to Nectar if you value your points collecting
- Increase public knowledge about the benefits of loyalty schemes
- To show that, in general, the presence of a loyalty scheme shouldn't influence your decision
Why are we here?
There are some exceptions to the rule that the presence of a loyalty scheme shouldn't influence your decision and that's when a loyalty scheme is truly generous. Once such loyalty scheme was East Coast Rewards. Put simply East Coast Rewards gave free travel tickets for every £255 spent, whereas with Nectar that spend barely covers the cost of a sandwich. Virgin Trains East Coast took over in March 2015 and our sister site Save East Coast Rewards is campaigning for the scheme to return. Compare East Coast Rewards to Nectar.
We were also promised that the increased number of earning partners of Nectar would help us quickly earn rewards, the main Nectar partner being Sainsbury's. So now Nectar earning is halved at Sainsbury's it truly reduces the chance of earning enough points to get a decent deal on train travel.
What are we asking?
Spread the word! Let your friends, relatives and colleagues know about the Nectar devaluation. Make sure they're not collecting points totally unaware and then get disappointed when they try and cash them in.
The more people who hear about the campaign the more likely we're going to get change. If we just accept the changes it'll be the start of a downhill slide where more partners cut their Nectar earning.
Think to yourself, is Nectar really worth keeping? The data that's collected from you is worth a lot more to them, why should they have this data when they're not willing to offer something decent in return? If you've never found Nectar rewarding why not cancel your account and let them know why!
If Nectar sees a drop in usage then it'll have to rethink its strategy to once again become attractive to consumers.
Should I boycott Nectar partners?
No, unless the only reason you used the Nectar partner was because they offered points. If Sainsbury's is your preferred supermarket then by all means still go, Nectar should not be the key decision maker in that decision. If Nectar was your key decision then look at other reasons. If price is your key point Nectar is never going to save yourself more than going to somewhere cheaper. We are suggesting, however, if you don't find Nectar rewarding to cancel your account. Only if they lose users will they make the scheme more attractive.
Why were the points cut?
As far as we know the decision was made by Sainsbury's rather than Nectar, it may encourage other partners to do the same. We can't be sure of the reasons, we just need to be aware of the changes and how it affects you. Is it worth continuing with Nectar? A £100 shop would have originally earned you £1 (200) of Nectar points, now it would earn just 50p (100). To get £100 of points would require £20000 spend at base value.