How Nectar is digitising Shopper Marketing at Sainsbury’s

James Moir, Managing Director

12th March 2019

Shopper Marketing

today

Customer and industry expectations continue to rapidly evolve

IAB 2018

• Smartphone penetration is now 87%

• Smartphones are viewed 52 times per

day on average

• 45% of digital advertising is now on a

smartphone

• 11% of Smartphone users browse shopping

sites every day

Social media spend expected to double in next 5 years

18.5%

13%9.8%

Current levels

Over the next 12 months

In the next 5 years The CMO Survey 2018

CMO’s are concerned that they cannot

measure ROI;

• 53%… say data-driven marketing is the highest

priority

• 59%… do not have the right technology to

maximise the marketing impact

• 57%… are not able to measure their current

marketing return on investment

How we are thinking about the

An enhanced digital

experience for our

customers that delivers

greater utility & value Greater performance and

more transparency for

brands’ digital advertising

investment

future

Digitising the programme

Fully digital scheme

Different approach

to point allocation

Personalisation driven by

machine learning

Refreshed Nectar

brand

• Going digital created an expectation of excellence and ease

• Customers expect the ability to access and service account management tools for their Nectar accounts via the new app

• While customers loved the personalised offers, they like the steady value and flexibility of an always-on reward

• Customers want a single, simple destination for all of their value and offers

• Customers are using digital offers as a new form of shopping list

• Customers need time to adapt to a digital-only proposition, with the use of traditional media used to support the transition

What our trials tell us about what our customers value most

A connected digital ecosystem

Single digital experience Personalised experience Partner integration

Delivering greater performance and transparency

We take your objectives

to select the best

audience based on

millions of real shoppers

- never assumptions.

We serve relevant ads to

this audience across

digital devices on

Facebook, Instagram

and display.

By looking at the

shopping behaviour of

people exposed to the

ads online we can

evaluate against

campaign objectives.

HOW• Loyalty tiers

• Online

WHY• Health & Wellness

• Health exclusion

• Customer missions

WHAT• My Shopping

• Category Purchase

WHO• Household

• DemographicsPLATFORMS

Spotify / Facebook / Instagram

Twitter / Snap Chat/ Oath

Global Radio

DSPs

Google DBM / The Trade Desk /

AppNexus

Using offline data to personalise digital display & social advertising

LIVERAMP

Data matching and distribution

CONNECTED TV

Digital campaigns increase both brand favourability and awareness

These are results from digital campaigns we have run in a joint study with the IAB, the Digital Advertising industry body.

Targeted digital display can effectively drive an uplift in new customers

Our aim was to support this niche and distinctive brand in

driving awareness; to acquire new shoppers, retain lapsed

shoppers and grow

the base.

Consumer base:

• Lapsed brand customers

• Existing brand customers

• Buyers of other brands

Online and Offline Activation –Case Study

• 14 media channels over 3 phases

• 34 brands activated

• 6.4m OTS (opportunities to see)

• 3.6% incremental beauty sales

• 3.7% incremental shoppers, 45% where new

shoppers

• 10% increase in incremental sales

An enhanced digital

experience for our

customers, that

delivers greater utility

& value

Greater performance and

more transparency for

brands’ digital

advertising investment

Digital Shopper Marketing must deliver relevance, value and utility for the customer

Thank you