Tesco initiated a complimentary digital television channel exclusively for Clubcard holders
Tesco Launches Clubcard TV: A New Way to Personalize Shopping Experience
Retail giant Tesco has entered the world of online television with the launch of Clubcard TV, a free, ad-supported online TV channel that is now available to its 16 million Clubcard holders. Powered by Blinkbox, a video on-demand service in which Tesco owns an 80% stake, Clubcard TV focuses on family and child-friendly content.
The launch of Clubcard TV is part of Tesco's strategy to know its customers better. By leveraging Clubcard data, Tesco aims to deliver personalized and targeted advertising, enhancing customer engagement and reducing churn. Michael Cornish, CEO of Tesco Digital Entertainment, stated that relevant advertising will be shown before and during the content.
The data-driven personalization of Clubcard TV is designed to make an effort to be more personalized for each customer. Tesco integrates Clubcard data, which includes customers' shopping habits and preferences, to serve targeted ads through Clubcard TV and digital platforms. This means customers see advertisements and offers that are tailored to their previous purchases or interests, increasing engagement and value.
The evolution of Tesco’s loyalty program focused on immediate rewards ("Clubcard Prices") rather than just delayed points collection. This strategy enables Tesco to provide real-time personalized discounts and ads that increase customer engagement. The multi-channel approach includes television commercials, digital platforms like social media and YouTube, and interactive campaigns such as quizzes, all designed to make ads feel highly relevant and to deepen customer participation with the brand.
By sharing anonymized Clubcard data insights, Tesco allows consumer brands to leverage this rich data pool to deliver more relevant advertising and thus increase campaign effectiveness on Clubcard TV and other Tesco-owned media platforms. Advertisers such as Kellogg's, Colgate, and Danone have signed up to support Clubcard TV.
Plans exist to extend Clubcard TV to a range of devices including games consoles, tablets, Smart TVs, Blu-ray players, and set top boxes. Clubcard TV is currently available through a web browser. Clubcard TV can display targeted adverts in real-time based on customers' recent purchases, allowing for adverts that are more relevant to customers based on their purchase history.
Scott Deutrom, a former BSkyB executive, is the managing director of Clubcard TV. Deutrom discussed the launch of Clubcard TV in a blog post. Blinkbox will continue as a commercial offering. Clubcard TV is available online for members of Tesco's Clubcard loyalty scheme to watch TV and films for free.
[1] Tesco Clubcard TV: A New Way to Personalize Shopping Experience
[3] Tesco's Clubcard TV: A Game Changer in Personalized Advertising
[2] The integration of smart-home devices into Clubcard TV allows Tesco to deliver personalized advertising and offers, making the shopping experience more seamless and relevant for customers. For example, if a customer frequently buys kitchen gadgets, they might see ads for the latest technology or finance deals related to kitchen appliances.
[3] The business model of Clubcard TV expands beyond traditional advertising, as it leverages Tesco's existing finance and retail partnerships to provide exclusive offers and discounts on gadgets, smart-home devices, and financial products recommended based on customers' shopping behavior and preferences.
[3] By monthly showcasing the latest technology and gadgets on Clubcard TV, Tesco aims to align with the increasing demand for smart-home devices in the retail industry, further solidifying its presence in the dynamic world of finance, retail, and technology.
