Sainsbury’s Finance is using Teradata software
solutions to bring all its data onto a single platform and build a
virtual customer-loyalty loop.

The Teradata solution aims to avoid
duplication of data and provide analytical solutions for
Sainsbury’s Finance.  

“We needed a provider that could bring all of
our data sources together, a company that would be able to build a
solution from scratch and future-proof it,” said Simon Axon, head
of customer insights at Sainsbury’s Finance.

Sainsbury’s Finance aims to replicate its
strong customer service network from its supermarket parent to its
banking operations, and have a single source, 360-degree view of
customers with their Nectar and Sainsbury’s loyalty patterns
integrated with their Sainsbury’s Finance data, explained

From being an analytical tool initially, the
Teradata solution has now become an “operational tool at the heart
of our business proposition”, adds Axon

Aemonn Hughes, financial services director,
Teradata, says the Teradata platform consolidates all the
Sainsbury’s Finance data into one from a combination of sources,
“primarily from the Sainsbury supermarket Nectar loyalty
programme”, and merging that with the bank data to get a “strong
view of the customer”.

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Hughes also added that having had more of a
start-up nature, Sainsbury’s Finance was “reasonably quick at
making decisions about what they wanted to do.”

Hughes stressed that the Teradata software
platform “saves time and effort to find out answers to business
questions from different data sources” and gives Sainsbury’s
Finance a “reliable and scalable platform”.

Sainsbury’s Finance has received help on its
‘preferential pricing’ and the ‘Double Nectar’ initiatives through
Teradata platforms and the lender is, reportedly, more likely to
take out further finance products.

The platform aims to encourage Sainbury’s
supermarket customers to “purchase and take on finance products
from the system”, said Hughes.

The core target market for Sainsbury’s Finance
is the “loyal Sainsbury’s shopper” and the data from its Nectar
scheme gives the lender insight into when to target customers and
what to target them with.

Axon believes the ‘virtual loyalty loop’ will
differentiate Sainsbury’s Finance from the high street banks.

“We offer a range of products that combine
preferential pricing and a Double Nectar point offer for two years.
Our business proposition is to make shopping more rewarding for our
customers and for them to benefit from choosing us for their
banking and shopping needs.

The Double Nectar point initiative enables
Sainsbury’s Finance to earn more points depending on how many
products the customer opts for.

Early results show that Sainsbury’s Finance’s
insurance business is showing a 25% year on year growth. Through
the reward scheme, new business in the home insurance sector has
increased by 50% and pet insurance by 30%.

There has also been increased customer
retention, with Double Nectar customers renewing at a higher rate
than those opting for non-Nectar qualifying products. 

Sainsbury’s Finance is a joint venture between
J Sainsbury and Lloyds Banking Group, and currently has over 1.4m
active customer accounts.