Tesco simplifies Clubcard Rewards

Date : 18 January 2018

Tesco is to simplify the Boost element of its Clubcard loyalty scheme.

Standardising the value of Clubcard at Reward partners

In future all 'Reward Partners' will use the same Boost multiple of three times the face of a Clubcard voucher when it is redeemed at one of their outlets. These include numerous restaurants, hotels, visitor attractions and travel operators. At present Reward Partners use multiples of either two or four times face value so the change will dilute the value of Clubcard to shoppers who were planning to redeem their vouchers for four times their value. Following a backlash against the change, It is now being postponed to June 10th, giving the 17 million Clubcard holders more time to spend vouchers on existing terms.

Clubcard: a unique asset for Tesco

While the change has attracted criticism, Clubcard Boost will still offer some highly attractive deals. It is also notably more generous that Nectar deals offering more than face value are rare, though Nectar points are easier to acquire both because of the numerous outlets that offer them and the availability of frequent bonus points events. Tesco points out that most Clubcard point are redeemed in store, so these changes should make in-store redemption relatively more attractive, lifting volumes for suppliers.

The simplification of Clubcard is the first significant change to the scheme since its relaunch last summer when contactless cards were introduced, improvements to the app made and new reward partners brought into the scheme.


IGD Tesco Business Update 2018

23 May, London

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