Tesco: Loyalty is now about retailers being loyal to customers

Tesco has fundamentally shifted the way it views loyalty to be about the retailer being loyal to customers in the wake of its poor performance over the last year.


Speaking at Marketing Week Live yesterday (27 June), Tesco group loyalty director Katie Wadey said the supermarket is completely changing the way it thinks about loyalty because it has recognised building emotional loyalty has more longevity than functional loyalty.

“It’s not good enough now to give a few customers a better deal, you have to treat those people who have shown you loyalty a better service or a better experience than you do those shoppers who are promiscuous.

Initiatives such as Clubcard TV which launched earlier this year to offer Clubcard members exclusive access to film and TV content via a streaming service are designed so that families can experience and enjoy something together they wouldn’t have been able to otherwise, she said.

The supermarket is also looking to introduce a wider range of localised rewards for Clubcard so that members can redeem points and rewards against thing like meals in local restaurants as well as national chains.

“It’s no longer about customer being loyal to us, it’s about about us being loyal to our customers. It’s not rocket science … loyalty is an outcome of doing the right thing for your customers. We want to go back to the good old days of retail and put good service above everything else … use Clubcard as a way to thank our customers for choosing us.”