Case Study:
Tesco Clubcard Challenges
Leveraging the power of mass marketing to deliver personalization at scale.
Clubcard members targeted with Clubcard Challenges
Distinct visitors to the Clubcard Challenges pages converted to players
Players converted into winners (reaching first reward)
The Challenge
Tesco's pioneering loyalty program, Tesco Clubcard, launched in 1995 as one of the first initiatives of its kind and has grown to attract over 23 million members. Never wanting to sit still, Tesco were seeking out new and innovative ways to deliver value to their loyalty base and to further increase the relevance of the Clubcard program through personalization.
The Solution
In May 2024, Tesco launched Clubcard Challenges, powered by Eagle Eye's AI driven solution, giving customers the opportunity to collect up to £50 worth of Clubcard Points in 6 weeks by completing personalized challenges.
Eagle Eye's AI models make over 190 intelligent decisions to assign a single personalized challenge to an individual, ensuring that the targeted products/categories and the spend and reward thresholds are perfectly tailored for each participant. Each challenge is designed to reward incremental spending, ensuring benefit for the customer, retailer and participating suppliers.
In 2024, Tesco ran four separate 6 week campaigns, progressively increasing the number of customers being included in the campaign due to their great success, with the latest campaign being targeted to 10 million customers across the UK.
The Results
- 10m Clubcard members targeted with Clubcard Challenges
- 76% of distinct visitors to the Clubcard Challenges pages converted to players.
- 62% of players converted into winners (reaching first reward).
A Record Breaking Christmas!
Tesco announced their "biggest ever Christmas performance" in 2024 reporting that Clubcard Challenges contributed to a record level of digital engagement.
Our customers continue to benefit from increasing personalisation and great value with Clubcard. Customers collected over half a billion extra Clubcard points over the period through Clubcard challenges
Ken Murphy, Tesco CEO
Why Clubcard Challenges are so successful
One-to-One Marketing at Scale
Tesco can deliver hyper-personalized experiences to 10 million Clubcard members through a single solution integrated with its existing loyalty program.
Digital Tracking
Clubcard Challenges builds on the idea that people increase their effort and motivation as they get closer to a goal. It also encourages customers to use the Tesco app, increasing digital engagement with the broader Clubcard program.
Delayed Gratification
Customers receive all the rewards they earn at the end of the six-week campaign. This allows them to earn up to £50 in Clubcard Points at once, rather than the smaller rewards typically offered through traditional promotions.
Supplier Participation
Tesco included both private-label and branded products in its campaigns. This created new revenue opportunities for suppliers, strengthened supplier relationships, and helped offset program costs.
Profitable by Design
EagleAI’s algorithms reward only incremental spending on favorite items and new products or categories, creating value for customers, Tesco, and participating suppliers.
Marketing Themes
Tesco themed each campaign around major events, such as the Olympics and Christmas. This created a timely, engaging narrative that aligned with its broader marketing calendar and encouraged customers to participate.
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Transcript
Liz Masters, Head of Clubcard Proposition, Tesco
My name is Liz Masters, and I'm Head of Clubcard Proposition for Tesco. My team and I look after all the benefits customers get when they use their Clubcard, which is Tesco's loyalty scheme. We optimize and develop new benefits for customers while also driving the overall loyalty strategy, and we do that by focusing on what customers want from us, how we can better reward them, and in turn, how that drives business performance.
In terms of how we selected Eagle Eye's personalized challenges solution, we were really after something that could personalize a customer's experience across their full basket of shopping, while also being granular enough to get into that product or brand level. We worked with our innovation team to identify a startup, Untie the Knot, which then became Eagle Eye, to figure out how they could support us with this challenge. What we really liked was the ready made solution: personalized and granular enough across the customer's basket, but also easy to use, gamified, and genuinely fun and engaging. The fact that it had already been a success globally gave us confidence that customers would like it and that it would drive the performance we needed.
We're really pleased with how it's performed across Tesco and for customers. We've run three scaled campaigns so far, reaching up to five million customers. What we've seen is that when customers visit their personalized microsite to view their challenges, nearly 80% go on to play. I think this really demonstrates that the personalization is working and that customers find it genuinely engaging.
For the wider Tesco proposition, aside from helping us demonstrate the value of Clubcard to customers, we're also able to work with our commercial team and supplier partners to curate the challenges customers see. So we can feature the categories, brands, or missions that matter to the business and to customers, and the personalization then takes over to make sure those products reach the right customers.
It's also benefited the wider Clubcard proposition. We intentionally use Clubcard points as the reward, so we've been able to put millions of pounds worth of points back into customers' pockets. That matters from a loyalty perspective because it drives ongoing engagement with the scheme: customers can use that value for money off their shopping, or get double the value with our 100+ reward partners.
It's also driven digital engagement. Customers use the Tesco app to access their personalized microsite, which helps build the habit of checking the app, important for the wider Clubcard and Tesco proposition. And we've been able to bring a bit of fun into that experience too, which we hope adds to the overall customer journey with Clubcard and Tesco.
Note: This interview was recorded following Tesco's third Clubcard Challenges campaign, reaching 5 million customers. Tesco has since run a fourth campaign, scaling to 10 million customers, as reflected in the results above.
Quick answers about Tesco Clubcard Challenges
Recognized by the analysts defining the future of loyalty
Eagle Eye has been recognized by leading global analysts for helping enterprise retailers deliver loyalty, promotions and personalization at scale.
BCG on personalization at enterprise scale
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Boston Consulting Group, 2024
Leader, SPARK Matrix™: Customer Loyalty Solutions, Q2, 2025
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Ready to personalize loyalty at your scale?
Tesco reached 10 million Clubcard members with rewards tailored to each one. See how EagleAI can turn your loyalty programme into a 1 to 1 experience for every customer, without adding complexity for your team.