Tesco Clubcard was the pioneering and most innovative retail loyalty programme. Since 1995 we have defined how to engage the nation in a relevant, personalised way to drive greater loyalty and sales (an uplift of £13 million per annum).
Over the years we have seen Tesco become the UK’s no.1 supermarket and a significant part of achieving this success is Clubcard. We understood the importance of data and how it can drive a business and we’ve continued to work together to uncover insights that have driven both Clubcard and Tesco.
Our 20 strong Tesco team combine brilliant data analytics with modern communications techniques that reinforce the strength of the Tesco brand and make the Clubcard the bedrock of their business proposition.
To support the launch of Tesco.com in 2000, Clubcard insight helped the business plan routes, ensured distribution centres were in the right place and communicate with the right customers in the right way to shop online.
But it’s the Clubcard communications that thank customers for shopping at Tesco and help drive over £1billion of trade each year. The only way to maintain this level is to consistently innovate – here’s what we have achieved over the years:
- In 2005, there was a significant decline in penetration. Research identified that most customers forgot to take their Clubcard shopping, and with majority of members using their car to visit the supermarket, we created the keyfob. Penetration increased by 10% to 75% and efficiencies of over £8m were achieved.
- In 2011, our ambition was to encourage members to receive their statement via email whilst ensuring coupon and voucher redemption remained high. We developed a multi-channel contact strategy that focused on maintaining engagement through email, kiosk, app and website activity, and saw an uplift in members receiving their statement by email to 20%.
- In 2012, analysis showed our most loyal customers were leaving Tesco to cheaper brands. The loyalty landscape was changing, schemes were becoming ubiquitous giving customers a lot more choice to feel loyal to multiple brands. Our objective was no longer about gaining all the loyalty, but to use Clubcard to retain its customers and encourage 1 more shop, 1 more item, 1 more interaction. We developed a multi-channel programme that focussed on emotional engagement – from personalised free gifts to store events, through to encouraging members to check in when they visited a store to receive money off the things we knew they bought.
- By 2018, we have embarked on the fourth evolution of Tesco’s engagement strategy, launching a new proposition with a new look and feel via a multi-channel contact strategy that ensures customers receive relevant communication at the right time and in the right channel – resulting in closer integration with the Tesco brand and placing Clubcard at the heart of the business’ transformation.
- Targeted mailings generate sales uplift of £4m-£13m
- 19m Tesco customers are activity engaged with Clubcard
- Clubcard activity generates over £1billion annually
- Customers exchanged £25.5m of vouchers
- 26% of customers have become more loyal
- Clubcard is a key part to the Tesco P&L posting four consecutive rises in quarterly results