How might we boost Tesco’s stagnating loyalty scheme to be more relevant to their customers?

The solution

We started with a deep dive into the attitudes and motivations of customers towards Tesco’s current loyalty scheme. What was wrong with the current system? What was great? Where were the opportunity areas that could rejuvenate the scheme?

A carefully selected range of customers were tasked with keeping diaries for us, recording how they shop and what they feel when shopping with Tesco. We interviewed them in their homes, taking the senior stakeholders with us so they could hear what customers thought directly ‘from the horse’s mouth’ — quite a revelation for some.

From the insights emerged 22 ideas, turned into 13 service concepts. The four most promising ones were built as prototypes – from physical items in store to digital solutions and tested for two days in-store with real customers, iterating what didn’t work over night.

The results

Increase in NPS and usage

We found a way to re-energise the Tesco’s loyalty scheme leading to an indicative 300% t increase in the usage rate for the 3 prototypes.

Increase in usage

230% increase of customer satisfaction for 3 of the prototypes.

Pilot on a regional scale

Tesco is now piloting a new iteration on a regional scale.

Working with Hellon has changed the way I work and got me a whole new different approach at Tesco. I have become one of the key service design Ambassadors in our organisation.”

Rachel Hamilton, Research Lead, Digital ProductTesco