Tesco is planning a hyper-personalised loyalty programme promotion for selected members of its Clubcard with technology company Eagle Eye. The collaboration with Eagle Eye on this is initially limited to one year – with the option to extend for a further year. The British retail giant will invite three million users for this Clubcard programme and offer them discounts and rewards for achieving certain purchase targets, so-called challenges. The campaign will start on 20 May this year – initially for six weeks. For the hyper-personalisation of offers and content, which can be displayed in real time for the first time, Tesco is relying on the data science solution EagleAI from its technology partner, which was launched in January 2024.
The algorithms of the new feature EagleAI enable an AI-based, holistic view of every shopper. Eagle Eye analyses, structures and evaluates a large amount of data on customer usage behaviour in real time before, during and after Tesco’s Clubcard Challenge – at every point of contact in physical stores and the online shop. Based on the findings, the solution creates hyper-personalised content, recommendations and offers and displays them on a customer-specific basis. Tesco can also drive cross-selling and upselling activities more easily.
Tesco Clubcard users selected for the loyalty programme promotion will receive a personal invitation to take part in the six-week promotion. As soon as users accept the invitation, they can choose ten challenges from a total of twenty and complete them within the campaign period. As a reward, they will receive loyalty programme points worth a total of 50 British Pounds.
Hyper-personalisation through a 360-degree view of the customer
While one customer – based on their usage behaviour in previous purchases – is given the task of spending 20 British Pounds on the summer barbecue range in the next six weeks, for example, the challenge for another user is to buy ten British Pounds worth of plant-based products. If a customer completes an accepted challenge, they are rewarded with additional Clubcard points. These can be converted into rewards worth up to 100 British Pounds – also at over 100 rewards partners that Tesco includes in its programme.
Lizzie Reynolds, Group Membership and Loyalty Director at Tesco, explains: “We are constantly looking for ways to make the Clubcard even more attractive to our customers. Personalisation is about using what we know about our customers to improve their experience and make our rewards more helpful. We are very excited to see how our customers react to the Clubcard Challenges.”
Loyalty as a concept for success
Tesco’s loyalty programme is very popular and is an important tool for the retail company to bring customers out of anonymity and retain them through suitable offers. According to Statista, around 21 million households in the UK were active members of the Tesco loyalty programme in February 2023 – 14 million users had the Tesco Clubcard app. The number of customers accessing the Tesco Clubcard via the app has never been higher, according to Tesco.
