Tesco Leverages AI to Gamify Loyalty Program Challenges

UK supermarket giant Tesco will use AI to provide personalized purchasing challenges to as many as three million members of its Clubcard loyalty program, offering them a chance to earn a maximum of £50 (approximately $62 USD) in Clubcard points.

Beginning May 20, 2024 and lasting six weeks, participating members will receive 20 challenges that have been personalized just for them, ranging from “Spend £20 on our Summer BBQ range over the next six weeks,” to “Spend £10 on plant-based meals.” Of the 20 available tasks, customers can choose the 10 they most want to complete, earning a maximum of £50 in Clubcard points — an amount worth £100 for them to spend with more than 100 reward partners.

“We are constantly looking for ways to make Clubcard work harder for our customers,” said Lizie Reynolds, Group Membership and Loyalty Director at Tesco in a statement. “Personalization is about using what we know about customers to make their experience better and our rewards more helpful, and we’re very excited to see how our customers respond to Clubcard Challenges.”

Tesco has been employing personalization techniques for some time. Over the last year, the retailer issued 289 million personalized coupons to customers and as a result saw a significant increase in the number of coupons redeemed.

For Clubcard Challenges, Tesco is working with EagleAI to deliver hyper-personalization through its analytics capabilities.