Tesco launches Air Miles

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By: Wise Marketer Staff |

Posted on March 18, 2002

Tesco launches Air Miles

Tesco is hoping for a surge of business as it expects Air Miles customers to swap from rival chain Sainsbury's, which used to give Air Miles. But will they swap?

Tesco Clubcard members can now trade in their Clubcard vouchers for Air Miles. Tesco claims that its "exchange rate" of vouchers for Air Miles will enable its higher spending customers to build their rewards at twice the speed they could at rival supermarket chain, Sainsbury's - which issued Air Miles from 1996, when its Reward Card programme was launched, until last week (see story). An extra one million Clubcards have been sent out to stores this week to cater for the influx of Air Miles collectors that Tesco is hoping for.

A customer who spends £100 per week in a Tesco store and pays with a Tesco credit card would earn 2,480 Air Miles after 52 weeks, enough for five return trips to Paris. Clubcard customers will have the opportunity to win British Airways Concorde flights to New York, and a share of one million Air Miles each time they use their Clubcard until 31st March.

Where's the nearest Tesco? Tesco.com has seen a 450% surge in searches for store maps as customers look online for their nearest Tesco store, while enquiries about home shopping have risen 300% as customers look for Tesco.com to deliver their shopping to them.

Since 11th January, when the partnership with Tesco was announced in the press, Air Miles has seen an increase of around 140% in the number of miles issued to Sainsbury's customers compared with the same period last year. Almost 2 million Sainsbury's Reward Vouchers were cashed in for Air Miles before the move.

BA Miles too Despite earlier speculation, Tesco says that its customers will be able to earn Air Miles on all Clubcard points - not just those issued after 15th March. Members of British Airways Executive Club will also be able to earn BA Miles at Tesco from 15th March.

Tesco Clubcard members earn one point (worth £0.01) per £1 spent, and can exchange a £2.50 voucher (250 points) for 40 Air Miles. Customers spending an average of £60 or more per week over each 13-week period will get 80 Air Miles for each 250 points.

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