Tesco boosts loyalty rewards with 'flash sales'

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By: Wise Marketer Staff |

Posted on June 6, 2011

Tesco boosts loyalty rewards with 'flash sales'

Tesco Clubcard's web site is offering its members the opportunity to exchange their Clubcard vouchers for limited time offers or limited availability goods for up to three times the face-value.

The retailer is working with multi-channel firm IVIS Group, which built and implemented the technology running the new 'flash sales' promotions, through which a simple count-down can show customers how long an offer has to run, or how many products there are left to claim.

"The count-down adds an element of excitement to our Rewards promotions," said Emma Lawrence-Jones, Clubcard marketing manager for Tesco. "We have a variety of limited offers, which have included a £15 iTunes token for £7.50 worth of Clubcard vouchers - which sold out in less than 90 minutes."

Customers can see stock levels counting down in real-time as the products are being sold. This helps to create a 'me too' effect, with others rushing to take advantage of the special deals.

Tesco Clubcard is also running offers in which certain products are on sale for a limited time - for example special deals that run for one week, or even one month.

"These limited availability and limited time offers are a different way to build customer interest in products when they visit the website," said Lawrence-Jones. According to Paul Bolton, director of product and corporate strategy for IVIS Group, "Promotions such as these drive people online to engage with the brand, and will help to increase traffic to the main grocery and Tesco Direct websites."

Tesco Clubcard currently claims some 32 million active Clubcard holders globally in nine markets, with over 16 million of those being in the UK itself. It has more than 600 reward partners offering deals on a range of days out, experiences and other essentials.

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