‘Cash’ or Rewards, which pay off?

We’ve previously spoken about whether cash is the best incentive for employee rewards schemes, but what about your most loyal…

October 26, 2022

Transforming Your Business with Data-Driven Loyalty Insights

We’ve previously spoken about whether cash is the best incentive for employee rewards schemes, but what about your most loyal customers? Keeping your existing customers happy and maintaining customer loyalty is essential to a business’s success. So how can you best show a token of appreciation to those who have spent their hard-earned cash with your company, time and time again? 

ASDA Rewards

ASDA recently decided the answer to boosting loyalty and competing with the other big hitter supermarkets, was to introduce their own nationwide rewards scheme with a gamification element

What is the ASDA rewards scheme? 

The ASDA customer loyalty scheme is facilitated through a smartphone app and can be used both in store and online. ASDA describes it as an exciting opportunity to earn ‘ASDA pounds into a Cashpot’ which you can then spend on groceries.

As part of the scheme, there are two types of offers; Star Products and Missions. Star Products are specific items that earn the customer a certain amount into their Cashpot, each time they purchase one of them.

Missions are offers that customers complete as they shop. These require a customer to shop a certain number of times or spend a certain amount of money on qualifying products. Completing a mission earns the customer a specified amount into their Cashpot and is tracked within the app.

The points can then be swapped for ASDA Pounds vouchers, which can be spent in-store and online. These rewards are redeemable for up to six months, at which point they expire.



How does it hold up against competitors?

ASDA Rewards Tesco Clubcard Sainsbury’s Nectar Points
Rewards Partners No Yes - Restaurants, travel, entertainment and experiences Yes - Hospitality, travel, leisure and retail
Points Multiplier No Turn every £0.50 in vouchers into £1.50 on promoted events Annual ‘double up’ promotion

 E.g. Every 1,000 points worth £5 normally would be worth £10

Points Value 10% on selected product specific cashback  100 points = £1 200 points = £1
Time Limit on Vouchers Expire after 30 days 2 years There's no automatic expiry date for Nectar points, but if you don't collect or spend any points for a year, Sainsbury’s will close your account
Points Expiry 6 months None None

Unlike ASDA, Tesco and Sainsbury’s offer their customers enrolled in their loyalty scheme, the opportunity to cash in their points for discounts to spend with other rewards partners, including theme parks, hotels and other experiences. Bringing an extra incentive and flexibility to their offering, compared to ASDA which focuses on saving on your grocery shop.

Promotional events run by Tesco and Sainsburys also allow customers to increase the value of the points collected through various seasonal schemes and ongoing promotions. This includes turning 50p into £1.50 on rewards partner vouchers with Tesco. Equally, Sainsbury's runs seasonal ‘double up’ events where users can double the value of their points.

The time limit on the ASDA rewards may be an issue for those who are less frequent shoppers, whereas Nectar and Tesco points do not expire, but once converted into vouchers, these have an expiration date added. With Tesco this is two years from the date of issue and Nectar vouchers expire a year after issue, compared to ASDA’s 6 month time limit.


Supermarkets are facing a competitive period of time, during which customers will face a decision on where to spend their salaries. As an essential part of daily life, obtaining an edge on your competition through loyalty schemes is crucial. 

We’ve seen the evolution of the Tesco Clubcard and Nectar points in the past, and it’s likely that the ASDA rewards scheme will change as the business better understands the needs and wants of their customers.

Not only does a reward scheme provide a useful incentive for encouraging customers to shop with your supermarket over a competitor, they also provide valuable data insights into shopping habits and behaviours. With this understanding, companies like ASDA can better tailor their offering on a personal level, within an account, and on a wider scale in terms of value and functionality of the programme.

Although the promise of ‘cash rewards’ by ASDA may seem tempting, the value of the rewards are completely dependent on the customers' individual shopping habits and the value associated with the rewards.

In recent years, a great deal of time and effort has been invested into the supermarket retail industry to develop user friendly and enticing reward programmes that influence the spending behaviour of their customers in a highly competitive industry. The same can be said for almost any sector in the world, with the introduction and influence of online or budget driven competitors, the need to develop additional services that continually engage and motivate customers has become far greater.

There are now multiple examples where good price and great service are only the first requirement to instill brand loyalty with an audience, this is often supported by a well-rounded rewards scheme that taps in to modern thinking and the idea of rewarding customers not just for spending money, but for ongoing and public engagement with a brand. The whole market will continue to evolve to find new ways of using this technology to enhance their business and increase their market share in a challenging world.

Get in touch

Whether you’re looking for answers, would like to discuss our services, or just want to know a little bit more about how we have helped our other clients, simply get in touch and we’ll get back to you as soon as we can!

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