Tesco boss Philip Clarke has unveiled a two-tier online marketing strategy in a drive to ramp up the use of personalised Clubcard data.
Clarke said changes would be made to the Tesco.com site to enable Everyday Value offers to be flashed up to its most price-sensitive customers, while Finest products would be the centre of personalised messages to more “upmarket” Clubcard holders.
The move is the latest phase in Tesco’s plan to expand the use of Clubcard and also extends trials it has been carrying out in stores, whereby more lucrative areas have focused on Finest ranges and those in poorer areas have centred on price.
In a speech to the Consumer Goods Forum in Istanbul entitled ‘Follow the Customer or Die’, Clarke said Clubcard was a “critical” part of Tesco’s plans.
“Data about food is more insightful than any other kind of data: you are what you eat,” Clarke said.
“But now we’re turning Clubcard digital, correlating the data we have about what food people buy with sources of data – social networking data, mobile phone data, payment methods – so we can get to know our customers better still, and use that understanding to deliver an even more personalised offer.”
He added: “For example, we’re now making changes to our UK website to highlight promotions that are relevant to the customer who is browsing the site. 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.”
Clarke said Tesco had trialled the idea around sales of mattresses, having used Clubcard data to tell if a customer was more swayed by price or quality to decide which offer was displayed to them. Sales, he said, grew by 10% during the trial.