Tesco has announced a joint business venture with O2-owned Weve on a mobile couponing initiative. The aim is to employ location-tied mobile coupons to drive awareness and increase footfall.
Tesco has been largely focussed on digitising its coupons to increase the use of mobile as part of its drive towards a better shopping experience for customers. Shelly Chotai, FMCG Partnership Manager at Weve said: “Tesco understands that mobile can and should be part of the shopping experience in ways that can directly benefit the consumer and give them a greater understanding of vouchering and couponing process”.
The initiative is linked to a new concept Tesco store in London, Villiers Street. Tesco is using the Weve service (geo-fencing) to identify consumers who had either walked past the store six times within a fortnight, or walked in and out of Embankment tube station. During the initial period, 40,000 shoppers were identified and addressed. Tesco then directed coupons to these consumers’ smartphones, offering money off of a food-to-go shop. These coupons are available to redeem by scanning it with food at a self-service till. The grocer has planned to introduce these new scanners, which can recognise a barcode displayed on a mobile screen, later this year.
The supermarket giant’s latest initiative will allow the identification of target audiences in the catchment area of each individual store, and direct adverts to customers most likely to purchase the promoted items. The service will also provide Tesco with anonymous genders and ages of opt-in consumers to enable further directed advertising and promotions.
Whilst Weve has not announced statistics yet, a spokesperson said that “the trial has been its most successful with a supermarket partner to date”. Tesco plans to launch a second phase of the trial over the coming summer months.
“This initiative between Weve and Tesco, tests a whole number of interesting ideas from habitual and live location, unique mobile couponing that can only be redeemed once, to the creation of bespoke audiences to drive footfall into a whole new range of stores that are different in their concept and ideas.” Chotai added.