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TESCO Clubcard

Tesco is a British multinational grocer and the third largest retailer in the world measured by gross revenues. As a market leader in the UK, Tesco’s Clubcard loyalty card scheme is well known in most households. Since its launch in 1995, Tesco’s flagship loyalty scheme has attracted over 17 million members and is regarded as one of the most successful and best-in-class loyalty schemes in retail.

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Moving from analogue to digital

In seeking to reduce operational costs associated with issuing paper-based Clubcard vouchers and coupons, the retailer also wanted to both simplify and enhance the customer experience for its loyalty scheme members.

Urszula Perry, Product Manager, Tesco Clubcard said: “The biggest challenge facing retail is staying on top of digital innovations and offering customers the best products, when and where they want them.”

So, Tesco sought to increase efficiency and improve service by engaging with customers through a digital channel and allowing them to exchange Clubcard points for vouchers redeemable at partner businesses.

Perry explained: “We are currently using the Eagle Eye AIR platform for digital fulfilment and for validating Tesco Clubcard vouchers.

“Our customers use Tesco Clubcard vouchers when they go to our partners, like PizzaExpress or Prezzo, and validate their vouchers through the redemption at point of sale in-store at these locations.”

Service efficiencies and enhancements

On moving to Eagle Eye AIR, Tesco was able to dramatically reduce the time taken to issue vouchers from five days to two hours, improving customer engagement and likelihood of voucher redemption.

Real-time validation and redemption reporting also enabled Tesco to offer Clubcard members more targeted and personalised offers and rewards, and to track engagement levels with these incentives as they developed.

Perry said: “What excites me about digital innovation is that it offers customers services like apps and digital fulfilment, so they can access Tesco products when they want to.”

After digitising its voucher issuance and redemption processes by using the Eagle Eye AIR platform and away from paper-based alternatives, Tesco was not only able to save costs, but it was also able to eliminate fraud.

Unique coupon codes issued via the AIR platform eliminated voucher mal-redemption, while the move to digital fulfilment converted 90% of Clubcard members to email coupons within six months of launch.

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Supporting a partner ecosystem

Perry observed: “Eagle Eye AIR is an excellent platform that offers our partners a quick way to plug into the Tesco Clubcard scheme and innovate, and to redeem our customers’ vouchers in real time.

“We continue to receive very good feedback from our customers online, via our website, and also via our customer service team.

“They’re very happy that they can access vouchers when they want them and that they can present the vouchers seamlessly in-store.

“So, for example, when you’re a customer that has redeemed a Tesco Clubcard voucher with one of our partners, you are able to present that voucher when you want to, and that voucher is digitally checked via the Eagle Eye AIR platform for its validity.

“It provides a quick, convenient customer journey and very seamless redemption in-store.” In the meantime, Perry added: “We continue to innovate and provide our customers with the best products out there.

“We continue to invest in our relationship with Eagle Eye because we recognise that, through the AIR platform, our customers are able to benefit from using Tesco Clubcard vouchers at partner locations across the UK.

“The main thing I like about working with Eagle Eye is its continuous innovation, excellent customer support that we continue to receive, and fantastic products and services. I look forward to continuing to work with Eagle Eye.”

statistics

90%

switch to email issued vouchers within first six months of launch

500000+

redemptions per month