Tesco buys into big data to make marketing more personalised

Tesco has bought big data technology firm Sociomantic as it looks for ways to improve its Clubcard loyalty programme and make its marketing more personalised. 

Tesco Clubcard
Tesco buys into big data to make marketing more personalised

The deal, carried out by Tesco subsidiary Dunnhumby, will see Sociomantic combine its data on 700 million online shoppers with Dunnhumby’s insights into 400 million customers to create an “unprecedented” database of more than a billion people. Sociomantic runs a programmatic digital advertising service, buying and selling online ads via an automated process. Details of the deal have not been disclosed.

Simon Hay, Dunnhumby’s chief executive, says the acquisition will allow Tesco to improve its online marketing to offer a better experience for consumers and advertisers.

He adds: “Our strategic priority is to engage consumers and earn their loyalty wherever they shop, in-store and online, with personalised communications that are valuable and meaningful. Our observed campaigns to date have shown that increased relevance leads to significantly better engagement and response rates. Doing that at a scale of more than a billion people is unprecedented.”

Tesco’s Clubcard scheme is run by Dunnhumby. It also works with brands including Coca-Cola and Macy’s on loyalty programmes and data collection on shopping habits in stores and online.

Tesco is looking at ways to improve its Clubcard loyalty scheme as shoppers increasingly head online and to mobile. It has already announced plans to launch a “digital Clubcard” that will allow customers to personalise their loyalty programmes and earn and redeem points and vouchers in store via their mobile device, rather than through a plastic card and paper vouchers.

Clubcard is key for Tesco as it attempts to turnaround the business, which is losing market share and saw sales over Christmas decline by 2.4 per cent on a like for like basis. Tesco chief executive Philip Clarke unveiled a ten point turnaround plan in February to help it keep up with changing shopping habits and regain market share lost to rivals.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here