Tesco: How advertising gave a loyalty programme the power to drive growth

This case demonstrates how a loyalty scheme can become a growth driver. In 2020 Tesco turned its established Clubcard rewards programme into a way for card users to gain instantly reduced prices. Advertising communicated the proposition with creative that featured shoppers with the ‘Power to Lower Prices’ and their positive reactions (‘Thrill Face’). The idea was incorporated into Tesco’s newsbrands advertising and its seasonal and audience-specific campaigns, with data-driven strategies such as geotargeting of non-users. Between 2020 and 2023, it is estimated that Tesco achieved 10.7m new Clubcard members, a £627m net sales inflow, and a £3.38 profit ROMI.