Tesco beats Clubcard copycats to claim loyalty scheme crown
Tesco’s beloved Clubcard has triumphed against rivals Sainsbury’s and Greggs to be named the country’s most valued loyalty scheme.
The supermarket giant’s Clubcard is the UK’s most effective, according to an index by software firm HyperFinity which polled Brits on the value, customer satisfaction and rewards offered by loyalty schemes at more than 50 retailers.
As the UK’s retailers vie for routine custom in a hugely competitive market, loyalty schemes have become a key tool used by supermarkets and fast-food chains to try to lock down customers.
More than three in four Brits (76 per cent) are members of at least one loyalty discount scheme, according to a report by Mintel, and more than 24m UK households have a Tesco Clubcard.
HyperFinity quizzed shoppers on how they rate a range of loyalty card schemes across a set of metrics including personalisation, ease of use and confidence in the retailer’s use of consumer data.
Brits focus on value in cost of living squeeze
Getting the best value for money is the factor Brits care about most when choosing a loyalty scheme, with more than 18 per cent saying this is what they look for first.
The emphasis on value comes as the British Retail Consortium (BRC) warns households’ confidence in their personal finances has dropped to its lowest level on record.
People are bracing to spend more on the basics – as they fear the Iran war will push up inflation – and planning to cut down on non-essentials like leisure and hospitality, the BRC said.
The research found Tesco’s Clubcard is the most popular loyalty scheme, achieving an index score of 8.38 out of 10.
Tesco’s loyalty scheme offers discounts for selected items, rewards for purchases and a 40p discount on the supermarket’s famed meal deal.
The supermarket’s scheme has the most dedicated fans, as it scored the highest for emotional loyalty and frequency of uses.
But Tesco has is often mocked by some on social media for the apparently random application of Clubcard discounts, and the competition watchdog has said it is concerned about the impact of loyalty schemes like Tesco’s on consumers.
‘Emotional connection’ with Tesco Clubcard
Brits’ intimate attachment to the Clubcard was noted by analysts. Hugh Kimber, general manager at Bloomreach – an e-commerce platform which worked on the research – said: “Retailers who use data to deliver consistent, relevant experiences are the ones building genuine emotional connections with their customers.”
Tesco was followed by natural fast food chain Leon (8.2) and coffee shop Pret a Manger (8.13).
Other retailers listed in Brits’ top 10 favourite loyalty programmes included toy story Hamleys, home improvement retailer Wickes and gym wear shop Sweaty Betty.
Peter Denby, HyperFinity’s chief executive, said: “There are a number of reasons Tesco Clubcard and Leon Club scored so highly, but primarily, it comes down to simplicity, flexibility and ease of use.
“They both stand out as experiences built around emotional connection, relevance and trust, rather than complex mechanics or heavy discounting.”