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Necar Card Operating Model

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Necar Card Operating Model
Operating Model of the Nectar by Seinsbury’s
Nectar is a point card scheme of Sainsbury’s and comprising partner companies such as BP. There are 18.5 million active Nectar users in the UK and swiped 22 cards every second (Alan2012).
Sainsbury’s recognized how important the Clubcard had been for Tesco in terms of boosting customer knowledge and developing strategies and promotions on the basis of this knowledge. Then Sainsbury’s lunched their loyalty point system to compete the Clubcard as well as Tesco. Sainsbury's and Safeway both attempted to launch loyalty cards. However, they quickly realized that collecting customer data may be simple; however developing customer intelligence is a different matter. Safeway quickly abolished its loyalty card, while Sainsbury's scrapped theirs in favour of entering in to into a cooperative scheme called Nectar(MarketLine2011).

T Julian Burnett, Chief Technology Officer of Sainsbury’s, talked in his interview that; first couple of years are focused on our customers. We started to invest in the quality and use of our customer information, and we have also started a major programme of investment around our point-of-sale systems. We are also establishing a more open architecture that will allow us to integrate more effectively with third parties and provide a number of capabilities for the mobile channel as well. (ComputeWeekly 2013)

Rob Fraser, CIO of Sainsbury's, mentioned in his interview on 2012 that “From my perspective, I am less interested in chopping up the whole solution into parts just so that we can tick the box and say we are doing cloud.” Fraser also explained, “We have a new capital investment plan. We are applying for some patents around the Brand Match technology, so I can’t go into too much detail”. (Computing 2012) He also said in another interview, “Sainsbury’s Nectar card points is run as a complete package externally. That’s not to say we wouldn’t chop a service up but it can get fiddly if you do

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