citycard-image-for-tesco-clubcardWelcome to the month of February. This month, popularly known as the month of love, holds something new for our CityCard blog – and that is a new feature!

We would like to introduce you to a new segment titled “CityCard: Learn from the Pros”.

This feature has been created with love for you and your business, and the desire to show you how some of the best brands in the world, who offer Rewards to their customers, have created a stellar customer base through those Rewards Programs.

We will dive into brands ranging from Tesco to Virgin Atlantic, and give you tailored information to help you, and your customer, make the best of your Rewards Programs.

It’ll come up once a month, and will have loads of information that you can learn from. We can’t wait to share all we have with you, so keep reading as we unveil our first case study – the Tesco ClubCard.


Tesco ClubCard
Tesco PLC is a British multinational grocery & general merchandise retailer located in the United Kingdom. With millions of faithful shoppers in the UK and its subsidiaries, the brand has become one to note.


The Tesco ClubCard was launched in 1995 by Dunnhumby, and is one of the world’s most celebrated Loyalty Programs due to its unique approach to Loyalty Marketing. The ClubCard focuses mainly on data, and distributes & recycles this data to feed its program and serve its customers better.

Here are 5 practices Tesco abides by till date, that would definitely give your brand the boost it needs;

1. They make the end-goal easy to achieve
One thing the Tesco ClubCard is known for is its feasible Loyalty Rewards. Tesco awards customers 1 point for each Pound spent, which eventually accumulates to 1p worth of vouchers off their purchase. On special occasions like holidays, the stores’ anniversary etc, these points are often doubled to give the customer a reason to celebrate right along with them.

Making the end-goal easy is one of the many ways you can lure customers in. They quickly see the finish line and would be more willing to participate if they know their reward is close at hand.

2. They involve partners
When it comes to special offers or occasions, Tesco makes sure your ClubCard can still be in play, even when you aren’t using it in their store. They involve their partnering stores in an agreement which enables their customer shop with them and still earn points.

Example: If you are a makeup brand that has its products stocked in various stores, including yours, you can partner with these stores to ensure your Customer Loyalty Card can be used when purchasing your product in their store.

This gives your customer a sense of value when they think of your brand, and makes sure they keep earning points everywhere they go.

3. They use buying/purchase information to gain insight & improve their approach
Loyalty Programs are not created for the customer alone, but also to help the business. Tesco is known for their data-centric approach to Loyalty Marketing which includes being able to analyze the data gotten from their customer’s purchase, and use that data to improve their services.

The ability to do this gives you foresight to predict your customer’s needs, and meet them even before the customer is aware of that need, and the insight to improve on loopholes before they grow out of control.

4. They personalize their offers
When it comes to dealing with your customer, personalization is key! And this is one area Tesco definitely thrives in.

The Tesco ClubCard has been recognized for its personalization tactics whereby it tailors offers to suit each customer. After realizing that a majority of its offers were going unused, and customers were uninterested in redeeming their prizes, they created what we now know as the ClubCard Bonus Coupon Mailer; which sends customers thousands of offers with various permutations based on their previous purchase.

Example: If you own a grocery store and one of your Customer Loyalty Card holders has come in to buy baby diapers, you can send that customer an action-inducing tailored e-mail letting them know you have restocked baby diapers and other essentials for baby care. This keeps you top-of-mind for their next purchase, and motivates them to stock up on the baby diapers even before they need it.

5. They Follow-Up
Sometimes, customers have to make the difficult decision to pick between what they want, and what they need. They might be on your website to meet their need for a new phone, but somehow still end up browsing through the fashion section. Tesco recognizes this fact, and that is why they follow-up.

Based on their ability to tailor ClubCard Bonus Coupon e-mails to your buying decision process, they can place emphasis on offers on fashion items…giving you more reason to indulge.

Example: Knowing that a Customer Loyalty Card holder checked out a bag for N25,000 but decided not to buy, you can send that customer a tailored e-mail letting them know they can get 5% off the selling price, if they use their Loyalty points. You can also ensure the offer lasts for a short period of time to increase the sense of urgency. This opportunity peaks their interest and lures them in to make the purchase.

Because of Tesco’s focus and dedication to beating every odd to give its customers more, they record substantial increase in the customer’s redemption rates, and record larger increase in spending per member. And you can too!

Start a Loyalty Program today by visiting or calling 0816261699.

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