Like many
shoppers, I was quite incensed to hear that Sainsburys’ are halving the amount
of Nectar points that they award to customers as of April next year. They will
only be awarding one point per pound spent, as opposed to the current two (two
points are only worth 1p ).
It’s true
to say that Nectar points always have been slightly inferior to those awarded
by Tesco Clubcard, with the exchange rate of the latter being four times their
face value when converted to Days Out vouchers, and each point being equal to
1p .
There are
some shoppers (misguided in my opinion) that question the value of loyalty
cards, but I believe that any reward you are given for shopping is better than
no reward at all.
Less effective than a loyalty card |
The
argument goes, that if stores are operating reward schemes, they subsequently
have to set their prices a little higher to offset these incentives. However, I would
refute this, as many good value items I buy are purchased in shops that offer
reward points.
Many of the
products that I purchase in places such as Tesco and Superdrug, are not only cheaper
or at least comparable to those offered at other shops, but earn me points.
Over the years I have acquired so many points under the Clubcard scheme, that
we have been able to pay for several family days out each year, including trips
to expensive theme parks, which we would not otherwise have afforded. Even if I
have occasionally paid a few pence more for the odd product or two, I have
received this amount back umpteen times over. It’s true to say, that if I could
have bought some items slightly cheaper elsewhere and put the pennies I’d saved
into a savings account, I would not have accumulated anywhere near enough to
pay for the equivalent number of fun outings.
I regard
all loyalty cards (and I can boast a considerable collection) as mini saving
schemes that allow me to enjoy life’s little extras. Unless prices are
considerably higher in a shop that offers a good value scheme, I am unlikely to
shop for identical products somewhere that does not offer me these extra
benefits.
So my
message to Sainsburys’, and any other stores planning to reduce or withdraw
their points schemes, is that this may result in a customer-cutting exercise as
opposed to your intended cost-cutting one!