Sainsbury’s Finance has launched an innovative reward approach which will see Sainsbury’s shoppers rewarded for buying its financial services products. Customers taking out selected Sainsbury’s Finance products will qualify for extra Nectar points on their Sainsbury’s shopping for two years
Sainsbury’s customers will be able to earn double their normal Nectar reward points on Sainsbury’s shopping for two years when they take out a selected Sainsbury’s Finance product. This is equivalent to an additional 1 per cent off their Sainsbury’s shopping bill.
Sainsbury’s Finance is unveiling its new and enhanced reward proposition when many other financial services companies are reducing or removing theirs completely. Research commissioned by Sainsbury’s Finance reveals that the proportion of credit cards offering holders a reward scheme for example, has fallen by over 11% in the past year. (1)
The approach which is designed to further strengthen its relationship with its core shopper base will see the Sainsbury’s shopper rewarded with double Nectar points on their shopping, in store, online and in petrol filling stations, for two years, when taking out selected Finance products (Home & Pet Insurance, an Easy Saver account and Credit Card). This offer enhances an already competitive set of products with many having won industry awards and currently featuring in best buy tables.
Supermarket banking is well known for challenging the traditional providers with their offerings of great financial products at competitive prices. New research commissioned by Sainsbury’s Finance indicates that additional reward incentives could be a major catalyst in getting people to consider supermarket banking. Research(2) commissioned by the supermarket bank indicates that 34% of people currently claim to have a financial services product from a supermarket, but that 70% of people would consider taking one out if they felt adequately rewarded for having one. It also found that 59% of people said that they would be likely to spend more in their supermarket if they had a financial services product that adequately rewarded them on their shopping(3).
Neil Chandler, chief executive, Sainsbury’s Finance, said: “We know that only 13% of people are satisfied with the level of loyalty reward they currently receive from their finance provider, and 35% claim they don’t receive any at all(3) . Our new approach will allow Sainsbury’s Finance customers to save money every time they go in store, fill up their car or shop online with Sainsbury’s as well as benefiting from good quality, award winning financial products.”
Justin King, chief executive, Sainsbury’s, said: “The development of our complementary non-food business is one of our key areas of focus and this is a significant opportunity for the bank to accelerate its future growth and customer acquisitions. This new approach further aligns our financial services business with our customer offer, providing greater rewards for our customers.”
The four core products Sainsbury’s Finance is rewarding double Nectar points on are also among the most competitive in their respective markets. The Easy Saver account and Credit Card regularly appear in best-buy tables. The supermarket bank’s Home Insurance offers unlimited buildings cover, which only 8% of policies do, and it does not apply charges for customers paying their premiums by direct debit – unlike 68% of policies(4) . Sainsbury’s Pet Insurance is amongst only 3% of policies to offer as much as £7,500 of veterinary fee cover(4).
In terms of the value of rewards customers would receive – if you spend £50 a week with Sainsbury’s and you have one of our four key finance products as well as your Nectar card, you would receive £52 worth of Nectar points a year. With two products and the same spend you would receive £78 worth of Nectar points every year and with all four products, you would earn £130 worth of Nectar points every year on a £50 per week spend. This is equivalent to a 30 minute Flying Lesson and a family trip to Vue cinemas or a Eurostar return ticket to Paris, Lille, Brussels or Disneyland Paris with Nectar points left over.
Jan Pieter Lips, Nectar’s Managing Director said: “This is a great opportunity for Sainsbury’s customers to get double Nectar points over two years which they will be able to redeem against thousands of different treats from cinema tickets at Vue through to days out at Legoland. It is one of the biggest ongoing Nectar campaigns we’ve been involved in and really demonstrates Sainsbury’s commitment to rewarding their customers for both shopping and banking with them”.
You can find out more about the Nectar reward offer and to use the Sainsbury’s Finance online Nectar calculator, by visiting www.sainsburysfinance.co.uk
Note:
(1) Defaqto analysis June 2009 and May 2008
(2) ICM Research interviewed a random sample of 2,009 adults aged 18+ by online-bus between 25th – 27th September 2009. Interviews were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information at www.icmresearch.co.uk
(3) ICM Research interviewed a random sample of 2,053 adults aged 18+ by online-bus between 18th – 20th September 2009. Interviews were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information at www.icmresearch.co.uk
(4)Defaqto analysis September 2009
New Research(2) from Sainsbury’s Finance reveals that the most popular financial services product that people have from a supermarket is a credit card (22%), followed by savings accounts (11%) and home insurance (7%). However, if people received attractive rewards on their shopping as a result of having these products, 40%, 37% and 39% of people respectively would consider taking them out.
Customers taking out a Sainsbury’s Finance Credit Card, Easy Saver account, Sainsbury’s Home Insurance or Pet Insurance qualify for the double Nectar offer.
Easy Saver: currently a Best-Buy product offering a rate of 2.80% AER
Credit Card: currently a Best Buy product offering 0% on purchases for 12 months on Sainsbury’s shopping and 10 months on all other purchases, plus 0% for 10 months on balance transfers
Home Insurance: “Best Direct Home Insurance Provider” for 2009 (Your Money awards)
Sainsbury’s Home Insurance is underwritten by St Andrews’ Insurance plc which is authorised and regulated by the Financial Services Authority.
Pet Insurance: designed to offer some of the widest range of benefits available at a competitive price, including veterinary fee cover up to £7,500 per condition. “Best Online Pet Insurance Provider” for 2008 (Your Money awards)
Double Nectar Points are only available with Sainsbury’s Pet Insurance Option 2 (up to £7,500 vet fees cover). There are two pet insurance products available.
Sainsbury’s Pet Insurance is underwritten by AXA Insurace UK plc which is authorised and regulated by the Financial Services Authority.
