BP Retail has renewed its contract with UK coalition loyalty programme, Nectar, because the programme has delivered double-digit percentage increases in sales and gross margin.
BP Retail, the fuel and forecourt-store arm of BP, was a founder member of Nectar when it launched in September 2002. Before that, after merging with Mobil in 1996, BP had used Argos Premier Points. The Argos programme, launched in 1990 and with over 20 million cards in circulation, was not an easy act to follow.
However, according to Chris Sedgwick, BP Retail UK's Marketing Director: "It is easy for consumers to be disloyal when buying fuel. Nectar has changed this for BP. Through consumer research and analysis we know that Nectar delivers double digit incremental percentage sales and gross margin to our business. Looking ahead we will be further increasing the benefit customers receive from Nectar."
Individual targeting
BP's customer research reveals that Nectar is one of the main reasons why customers choose a BP site over other brands. The company is now expanding its use of Nectar; it is running a trial in which specific, individually targeted special offer vouchers are printed for customers at the till point, using its Nectar data.
According to Brian Sinclair, Client Services Director at LMUK, the company that runs Nectar: "BP is an integral partner in the Nectar programme and is one of the main places where our collectors earn lots of points. We are delighted that BP has renewed their relationship with us."
One in two UK households is currently earning Nectar points from seventeen sponsors (partners) including BP, Sainsbury's, Threshers, EDF energy and Debenhams. From September 2005, the Nectar Credit Card from American Express will be available and will offer double Nectar points at Nectar retailers.
For additional information:
· Visit Nectar at http://www.nectar.com
· Visit BP at http://www.bp.com