Tesco to target customers according to their wealth by using their Clubcard data to personalise its website

  • Supermarket to tailor its websites with items aimed at individual shoppers
  • Tesco boss Phil Clarke wants customers to feel part of a ‘special group’ with staff feeling able to surprise the big spenders

By
Rupert Steiner

17:21 EST, 25 June 2012

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17:48 EST, 25 June 2012

Tesco is to divide its customers into rich and poor by using Clubcard data to personalise its website to display items geared towards your wealth.

Upmarket shoppers who click onto the retailer’s new home page will be tempted by smoked salmon and an array of sumptuous fine food.

Hard-up shoppers will be presented with tins of baked beans and Tesco’s Value promotions.

Reversing its fortunes: Tesco is fighting to improve its sales

Reversing its fortunes: Tesco is fighting to improve its sales

For years Britain’s biggest grocer has been able to chart the spending habits of regular shoppers using its loyalty card and now it is using some of that data to tailor its websites with items aimed at individual shoppers.

The supermarket giant is fighting a desperate battle to reverse its fortunes in the UK after a dire year in which it has lost out to rivals and posted its first profit warning for 20 years.

With its website it wants to recreate some of the personal service that shoppers used to enjoy on the High Street.

Tesco boss Phil Clarke said in a speech published yesterday: ‘We are turning Clubcard digital. We’re now making changes to our UK website to highlight promotions that are relevant to the customer who is browsing the site.

Speech: Phil Clarke unveiled the proposal yesterday, with the scheme part of the Clubcard going digital

Speech: Phil Clarke unveiled the proposal yesterday, with the scheme part of the Clubcard going digital

‘Using Clubcard data, we would show, for example, offers of our everyday Value range to price sensitive customers, and offers of our Finest range to more upmarket customers.’

He said if you think back a generation to the 1980s many retailers would know their customers individually.

‘Some customers you would know by name,’ he said. ‘Others you’d know well enough to give a friendly smile and ask ‘how are you today?’

‘If you knew and understood each of your customers inside out, you could give them what they wanted.

‘By doing that, you could earn the most important thing of all: customers’ loyalty. Loyal customers are the most precious asset any company can have.’

Tesco has already carried out a trial on its website personalising certain items based on the wealth of shoppers. It carried out a test on mattresses.

Clarke said: ‘When a customer visited our website, we would use Clubcard data to tell us if the customer was more swayed by price or quality. We’d then display the type of mattress that best reflected that shopper’s characteristic. Sales grew by 10pc.’

The move to engineer its website socially is likely to be controversial for Tesco. It risks shoppers taking offence at being presented with baskets of low cost items when some might actually enjoy browsing through more expensive products.

Other grocers have also found upmarket shoppers like to mix and match the items in their trolleys – filling them with premium products such as meat, where it matters, and buying budget salt and potatoes where it matters less.

Special offers at Tesco

Tesco Finest

Catering to different budgets: Some
customers will be presented with offers on basics when they log on to
Tesco’s website, while others will see luxury products

Most physical supermarkets already offer a two-tier shopping experience, filling the shelves of stores in more upmarket areas with caviar and fine wines while less prosperous regions get value ranges of pasta and canned food.

Clarke says personal service is the way forward and he wants customers to feel part of a ‘special group’ with staff feeling able to surprise the big spenders.

‘It means treating our best customers as we would our friends by giving our staff more freedom to surprise loyal customers with special offers,’ he said.

‘Trusted retailers will be those that do more than simply deliver value, choice, convenience.

‘They will be there in the global online, marketplace, just like those ancient traders in the markets you would have found here thousands of years ago, getting to know their customers, hearing what they have to say, delivering a personal service.’

Tesco is also introducing a raft of new initiatives aimed at boosting sales. It is putting free wi-fi in more of its stores which will give additional service to Clubcard holders using smartphones.

The phones will be able to tell the user where goods on their shopping list can be found in the store.

And, as they walk around the store, the smartphone will use its Clubcard data to make other suggestions about what they might want to buy, and point out offers.

The retailer has also transformed a series of interactive posters at a tube station in Korea into a virtual store.

The posters show images of shelves containing different items that simulate various aisles and passengers waiting for their trains can do their weekly shop by scanning the barcode on items they want from the posters and building an online shopping list which can be ordered to deliver at their home.

Here’s what other readers have said. Why not add your thoughts,
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The comments below have not been moderated.

I have never set foot in a tesco,and never will.

Interesting idea, but I think the problem is more to do with quality of their pricing, product and staff moral who seem feed up and miserable. They say a change is good as a rest, perhaps thinking more about staff motivation would be a better idea. Look after the pennies and the pounds will look after them selves doesn’t just apply to cash Mr Clarke.

Since I gave up my car I used to shop `on-line` with Tesco quite a lot. My Tesco credit card also doubles as a Clubcard.They had all the info on me they could possibly want. They kept sending me coupons and vouchers which could only be used “In Store” — I regularly buy Corsodyl Mouthwash so was pleased to receive two £1.50 vouchers for their mouthwash and toothpaste! I can only use them in store – 3/5 miles away! I sent an e-mail to complain – they phoned me and effectively said “Hard Luck” — I said “Have you any idea how much I have spent with you over the last two years?” – “No Sir that would be confidential[confidential???] – why are you upset – why are you having a moan – why don`t you just go to a store or give the coupons to someone who can use them” Muppets – I have done my last shop EVER with Tesco and have cut up their credit card. Now its Asda or Ocado both, in my view, much better.

Just switch to a different supermarket there are plenty around

I ditched my so-called loyalty card years ago when it became obvious that they were tracking peoples spending habits and purchases and giving very little in return for the valuable information they harvested.

Big brother has been watching you. Was those measly clubcard points worth it

I don’t use clubcards. We have enough snooping on us as it is. If Tescos wants to use them and there are enough gullible people doing Tesco’s sales and product study for a pittance, they are welcome to it.

I’m afraid no store will get any data on me as I have never owned any kind of loyalty card and never will. Tesco, luxury goods? Really? Surely if you want high-end products you would go to Waitrose, as we do. Tesco and Asda have a very high chav-count..!!

Are we using BRITISH people to do this IT? If not goodbye Tesco!

I’m a casual customer at Tesco. The Clubcard data on my card will probably put them off in sending me special offers. Their so-called quality products are too expensive anyway. I can get the same product at a cheaper price elsewhere.

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