Eagle Eye moves into full trial with Sainsbury's for new Nectar scheme

Retail loyalty-scheme software specialist Eagle Eye Solutions has extended its contract with Sainsbury's for the deployment of its digital wallet functionality.

The contract, which lasts until August 2021, will see the FTSE 100 supermarket utilise the technology to offer customers with personalised rewards during a new trialled expansion to its ‘Nectar’ scheme. Sainsbury's began a trial on the Isle of Wight on 12 April and will roll out nationwide if successful.

In February, Sainsbury's bought out the right to operate the Nectar loyalty programme in the UK from its previous owners for £60m.

The Eagle Eye system will allow customers to opt into personalised offers for which they can earn Nectar points, using either the new Nectar app or website, with deals made available through an offers programme that utilises Eagle Eye Solutions’ AIR platform.

The AIM-traded company said it expects revenue from the contract to move from professional services fees to transactional fees as customers use their personalised offers.

The initial contract between the two companies was signed in 2015, with Eagle Eye working with Sainsbury’s on a proof of concept since late 2016.

As of 0932 BST, Eagle Eye Solutions’ shares were up 8.75% at 205.00p.