New Plan on Tesco Clubcard Data Usage Raises Eyebrows

Fears of how AI will impact our lives are many. From replacing influencers to taking creative job roles, industries everywhere have been counting the ways the technology could impact their lives; for better or worse. 

Yet, one impact that possibly no one saw coming, is on your diet. 

Tesco has recently announced that they are looking to integrate AI into their Tesco clubcard app. The integration would serve a myriad of purposes, one being, to track consumers’ purchases. This data would be used to prompt Tesco shoppers to make “healthier” decisions. 

The announcement was greeted with uproar by consumers, who raised all manner of complaints. Some viewed it as an invasion of privacy. Others, a dangerous tactic with major ramifications for those struggling with their health. 

Will Tesco move forward with its decision? What implications does it have for the marketing industry at large? 

Read on to find out more. 

THE TESCO CLUBCARD GETS A FACE LIFT

Facing the crowd at the FT Future of Retail Conference in mid September, Tesco’s Chief Executive Ken Murphy boldly introduced the idea of the supermarket giant using shoppers’ Tesco clubcard data to prompt them to make “healthier” choices. 

Murphy claimed that AI could be utilised to monitor shoppers’ purchases and provide personalised prompts accordingly. According to Murphy, these “nudges” would appear as suggestions, such as “I’ve noticed over time in your shopping basket that your sodium salt content is 250% of your daily recommended allowance. I would recommend you substitute this, this and this.”

Beyond aiding in shopping choices related to health, the AI could also help shoppers’ save money, reduce their waste, and ultimately change the way Tesco’s consumers interact with the brand. For example, informing shoppers’ of upcoming sales, prompting them to hold off on buying certain products until their price drops. 

Ultimately, the program is clearly innovative, with Tesco seeking to use consumers’ data in unique ways to improve their overall shopping experience. Yet, it does open up several lines of questioning. 

NEW TESCO CLUBCARD APPROACH: IMPLICATIONS

The first is profit. Henry Dimbleby, leader of the UK Government’s current national food strategy, informed BBC that an unnamed supermarket had already tested out Tesco’s new idea in five stores. Whilst it was successful in improving the trolleys of shoppers, all five stores experienced a decline in profit. As such, the company decided to not move forward with the program. How does Tesco plan to change history and find a way to profit from this new program? 

Secondly is the question of privacy. For many, this new scheme screams Nanny State. The internet has been flooded with critiques of Tesco’s plan, claiming that it is a misuse of personal data and dangerous for those with underlying health conditions. 

Personal data usage is already a hot conversation in today’s political climate. Nations across the world have been tightening their restrictions on how companies can access and use their citizens’ data, in an effort to protect them. The new Tesco clubcard plan would likely face an immense number of road blocks before it came into fruition. Particularly in areas such as Europe, where the DSA is already blocking major names such as Meta from accessing user’s data. 

Finally, there is the question of marketing. If Tesco were to move forward with its plan, what would this mean for brands and marketers? Nudging consumers to purchase certain products opens up the door for brands to pay Tesco to promote themselves. Imagine a world where when Tesco urges you to make a healthier purchase, it tells you the specific brand you should buy from; not based on health, but based on who placed the highest bid. 

Whilst this could mean magic for marketers – getting right into the phones of shoppers as they do their weekly shopping is advertising gold – it opens up an ethical can of worms. Can brands morally pay for Tesco to urge consumers to purchase their products on the basis of health? 

Perhaps there is a middle ground. A way for brands to use the “in” of the Tesco clubcard to market their products to consumers, without crossing the line of blending marketing and health advice. 

THE FUTURE OF THE TESCO CLUBCARD 

Ultimately, the Tesco clubcard AI strategy raises a variety of important questions on not only AI, but the usage of consumer data. 

If the shopping giant were to move ahead with its plan, it will most definitely hit the same roadblocks that social media platforms such as Meta have hit when trying to leverage their users’ data. In regions such as Europe that have been particularly strict in protecting their citizens’ data, whether or not Tesco will succeed in its mission is a major question. 

For marketers, this could present an interesting avenue to further target consumers. Using shoppers data, a brand could target their audience even more specifically, prompting them to buy their products when they are in store, or make repeat purchases. 

Yet, this all boils down to one question; is it morally okay for Tesco to use shoppers data to prompt them to purchase specific items? 

Well, it is already happening. On our social media, our online shopping, our apps. Every decision you make helps brands target you better. 

The difference is, this is health. This is telling consumers to pick up an apple rather than a loaf of bread; not to buy the latest heels from Pretty Little Thing. The stakes are simply higher. 

Could this prompt a new round of conversations on data usage and how far to take the role of AI? Will Tesco follow through with its controversial plan? Only time will tell. 

For now, keep enjoying your weekly chocolate bar from Tesco. It could be the last time you do so uninterrupted.

Our influencer marketing agency and social agency are located worldwide, with our agency network based in the USA, UK, UAE and China.

If you want to find industry insights, visit our influencer marketing and social media blogs.

@sociallypowerful