SAINSBURY'S PROVIDING LOYALTY DATA TO SUPPLIERS 2004-01-26 (1)

JOHN DAWSON

LONDON -- Sainsbury's here has begun offering its suppliers free access to loyalty card data and analysis to provide greater insight into customer requirements.

Working in collaboration with Lawson Software and research organization TNS, Sainsbury's said it will use data from its "Nectar" loyalty card program to provide suppliers in-depth analysis of customer purchasing trends.

The project, launched in December, follows a successful pilot last year when Sainsbury's, parent of Shaw's Supermarkets, began sharing a combination of product and store-based analysis with key suppliers. Based on positive feedback, Sainsbury's decided to offer the information to all suppliers.

"By providing suppliers with this information, we enable them to develop products that put the customer even closer to the heart of our business and theirs," said Andrew Ground, Sainsbury's customer marketing director.

Customer names, addresses and other such personal data will not be released, but suppliers will be able to find out information such as:

The repeat purchase rate of products.

Profiles of customers purchasing particular products.

The most appropriate promotional tools to attract customers.

One example the chain cited for wine suppliers is that people who buy dishwater tablets are more likely to buy wine (wine drinkers have a lot more glasses to clean). This kind of insight could be helpful in planning promotions and marketing campaigns to target potential new customers, the chain said.