Nectar plans launch of first credit card

by James Quilter, Marketing 06-Jul-05, 15:36

Nectar is planning its most expensive marketing campaign since its launch three years ago to promote its first credit card.

The Nectar Credit Card from American Express will launch in September, backed by a multimillion-pound budget, according to Brian Sinclair, client services director of Nectar owner Loyalty Management UK.

The value generated by the card will help offset this summer's exit from the loyalty scheme of long-standing partner Barclaycard.

An initial direct marketing campaign will promote the credit card's introduction, ahead of substantial brand advertising, likely to be created by WCRS, that will break by the end of the year.

Sinclair said the American Express partnership covered two products: a card for consumers and one for small businesses. The card offers will be the same, but the latter's services will be tailored to businesses.

The card will allow members to earn four points per £1 spent on it. Any transactions with firms outside the scheme will offer a reward of one point per £1 spent.

The launch comes as Nectar tries to diversify its membership base and revitalise the scheme, which is the UK's biggest, with more than half of all households signed up.