Analysis: The top loyalty cards on the high street

Tesco

Tesco chief executive Philip Clarke vowed to bring Clubcard “into the heart of the business” in unveiling his £1bn strategy to revive the grocer in April. Tesco is using the data managed by its Clubcard partner Dunnhumby to inform which products go into which stores and to inform which products are most popular. Clubcard holders are mailed vouchers for money off products and can accrue points to spend on anything from groceries to holidays.

Sainsbury’s

Introduced in 2002, Nectar is one of the UK’s largest loyalty schemes. Sainsbury’s shoppers collect points as they spend and can redeem them on subsequent shops as well as use them to spend on other purchases including insurance and flights. Points accrued can also be spent at other retailers including Amazon, Debenhams, PC World, Currys and Figleaves.com. Sainsbury’s chief executive Justin King has praised the loyalty card which he says many shoppers save up to use for a large Christmas grocery shop.

Waterstones

The bookseller’s loyalty card has been around since 2007 and is the only retailer for which the points built up don’t expire. Cardholders receive three points per £1 spent with each point equivalent to 1p off purchases. The card has an element of personalisation as members receive extra points for books purchased by their favoured authors. As well as money off books, Waterstones’ scheme also offers money can’t buy prizes such as author meet and greets.

Debenhams

The department store launched a loyalty card in beauty, one of its fastest growing categories, in 2009. The Debenhams Beauty Club card operates on a tiered-points system. 

In-store purchases under £25 receive one point per £1 spent but if customers spend over £25, they receive three points. Cardholders receive £5 off for every 500 points collected.

To promote its multichannel credentials, Debenhams offers five points per £1 on purchases over £25 online and cardholders receive free delivery on web buys. Debenhams Beauty App also has its own dedicated app, making it easy for members to keep up-to-date on offers and points balance.

Points must be redeemed within six months and only 1,500 points (or £15) can be used in one go, which may be irritating for shoppers who save for Christmas.

Boots

The Boots Advantage Card is one of the most popular loyalty card schemes in the retail market and a complete success story since its launch in 1997 with 10.7 million active users. Shoppers collect 4 points for every £1 spent, which is a pretty generous reward compared to the rest of the loyalty schemes on the high street.

Redeeming points in store is quick and easy as you can simply ask to pay by points, while they can also be earned and redeemed online after the retailer updated its software earlier this year. Boots also uses the card to collect shopper data, enabling the retailer to target marketing and money-off deals.

Holland & Barrett

Launched last year the health and beauty retailer’s loyalty card scheme Rewards 4 Life is in its early stages. Like the Boots advantage card it offers 4 points for every £1 spent.  Points are redeemed through vouchers that are sent to the user throughout the year the retailer has about three million users.

Superdrug

Superdrug entered into the loyalty card battle with its own Beauty Card last year. Shoppers receive 1 point for every £1 spent but, unlike Boots’ Advantage Card, when you redeem points you do not need to have the total value of the product in points but instead you can split the payment across tenders. The actual card also doubles as a handy mirror.

Jaeger

When it comes into play in September, Jaeger’s more generous loyalty card offer means shoppers will begin earning vouchers once they spend £150 rather than the previous offer which started at £250.

Customers will receive a £20 voucher when they spend £150, increasing to a £30 voucher when they spend £300. Jaeger believes its loyalty card is key to supporting its increased focus on product, driving more loyalty and more value.