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Tesco revamps Direct to create 'Amazon-style' offering

Tesco Direct will relaunch early next year in a multimillion-pound initiative to personalise shoppers' experience through behavioural targeting.

The 'major business transformation project' will shift the website from 'manual merchandising' to an automatic 'algorithmically merchandised' offer, similar to that used by Amazon.

Each customer's content will be driven by recommendations and data feeds about topics such as sales and top-rated products. The integration of Clubcard data will mean that customers will see content reflecting their purchases, and those of consumers with similar profiles.

According to Tesco, it is expanding its non-food range 'by thousands of items every few months', with major expansion planned over the next two years. It is also adding hundreds of order and collection points in the UK, to support its goal of becoming the 'world's best multichannel retailer'.

According to sources, the relaunch is broader than just creating recommendations, as Tesco hopes to bring all orders, preferences and Clubcard insights together.

The overhaul marks a 'major step change in Tesco's digital evolution', according to a source close to the chain.

'This is just the start. I expect Tesco to unleash a wave of innovation, testing out new levels of personalisation,' the source added. 'Tesco's challenge is that people don't know its full range. The more consumers log in, the more the software will predict the best options.'

Andrew Williams, Tesco's digital media manager, said: 'We're always working on improving our sites to make the shopping trip even better.'

Tesco's long-term ambition is to be as big in non-food as it is in food. Tesco.com has annual sales of more than £2bn.

Source : Rachel Barnes - Marketing
www.marketingmagazine.co.uk/news/1084904/Tesco-revamps-Direct-create-Amazon-style-offering/

16 August 2011
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