Hudl tablet: Move into digital market is a 'significant step in Tesco's data-driven business'

Supermarket giant will be able to add to its giant data pool which already has more than 16m regular loyalty card holders, according to experts

It has conquered the UK retail market and is hungry for more success. Tesco entered the digital market with the recent launch of its Hudl tablet that sold out in two days with 35,000 people snapping up the £119 device – or £60 worth of Clubcard vouchers – and stores are busy restocking to meet demand.

Independent analysts claim the move into a new market is a significant step in Tesco’s data-driven business and will enable the supermarket giant to significantly add to its giant data pool with the behaviour and insights of more than 16m regular loyalty card holders already on its files.

Tesco’s chief marketing officer Matt Atkinson referred to the Hudl launch as about making technology more accessible and experts believe it is largely aimed at first-time tablet users who are naturally less tech-savvy.

Tesco’s e-marketing promotion of the Hudl last week states the tablet “comes with easy access to the Tesco world” as the device has pre-installed widgets for Tesco banking and Blinkbox, the supermarket’s multi-media streaming service.

Matthew Rubin, retail analyst at Verdict, told The Independent: “What the Hudl really gives Tesco is not just what people are buying but how they are buying it. It has the potential to give them locational data and the time spent browsing.

“The Tesco apps are intertwined into the device and it may give them more information than just your credit card details. The long-term potential is great – it’s following the footsteps of Amazon who have been so successful on the back of customer data and insights.”

Steve Parker, MediaVest’s managing director, said Tesco’s multi-channel strategy promised to offer brands more data about customers and new opportunities to develop commercial partnerships.

He told MediaWeek: “Having enjoyed much success with Clubcard, the tablet allows Tesco to take another step towards a more seamless relationship with its customers to deliver information, value and experience.”

Some analysts believe the Clubcard database is potentially more valuable than the caches of information gathered by Google and Facebook.

Sir Terry Leahy, the former Tesco chief executive who built the company into one of the world’s largest retailers, attributed the company’s success to “the ability to focus its effort around the consumer based on the use of data”.

In a speech to business leaders on Thursday he said: “Around the world Clubcard is more famous than Tesco… but not enough companies are showing a mastery of data.”

Barry Collins, editor of PcPro, said: “There are pre-loaded widgets on the tablet that want you to enter your Clubcard details and Tesco accounts, so it could collect data from those, although is that any more or different to the data it would collect if you logged in on your PC and shopped that way?

“In the sense that it could encourage people to shop online more, it may collect more data, but I’m pretty sure it’s not harvesting web surfing habits. All that data is collected by Google, not the hardware vendor.”

Predicting customers’ behaviour and when they are likely to alter their buying habits is big business in itself. Tesco’s customer science company, dunnhumby, which helped launch Clubcard, has now launched “personalisation programme products” to target Tesco customers by email.

Dunnhumby awarded the five-person team who created the product saying “it is a milestone for dh and Tesco”.

Sixty four per cent of organisations worldwide say they are now investing in, or plan to invest in, big data projects, according to research firm Gartner.

James Hoffmann, MD of Square Mile Coffee Roasters, said on his blog that he discovered how an app from Tesco’s coffee shop chain Harris and Hoole improved his drinking experience.

He said: “When you download the app you’re informed you get a free coffee (essentially the digital loyalty card has already been filled once for you). The app asks you what your favourite coffee is. I picked a small, black filter coffee.

“When you arrive at, or near, a location you check in and can send your order to the till – you don’t have to be inside, just close. By the time I got to the ordering point the barista asked if I was James. She then asked if I wanted to use my free drink, which I did. She then told me it was already being made and I could collect it from the second of their two coffee stations. Impressive.

“I don’t know what data they’re collecting. Simply putting a digital, location aware loyalty card in your customer’s pockets yields interesting opportunities. As Harris and Hoole are connected to Tesco I hope they’re doing more with the data. I certainly would want to! Whether we approve or knowingly consent to this data collection is a large, but separate topic.”

Tesco’s Clubcard privacy policy states: “We will never disclose your information to anyone outside the Tesco group except where we have your consent; where we are required or permitted to do so by law; to other companies who provide a service to us.”

A Tesco spokesperson said: “We have strict policies in place to protect customer information and we have never, and will never, sell our customers' data. We do use anonymised sales data to improve the shopping trip for customers and we send out £500m of rewards to Clubcard holders every year - dunnhumby uses this anonymised data to develop insight into how customers shop and it is this insight, not individual customer data, which they may share.

“Hudl is about making tablets more accessible to more people; we do not get any data from it. We already know our customers well through research and what they choose to tell us.”

The Independent asked Tesco to name the “other companies” referred to in its privacy policy but the spokesperson did not respond.

A spokesperson for dunnhumby did not return calls.

PROMOTED VIDEO
Life and Style
ebooksA superb mix of recipes serving up the freshest of local produce in a delicious range of styles
Life and Style
ebooksFrom the lifespan of a slug to the distance to the Sun: answers to 500 questions from readers
News
Angelina Jolie with her father Jon Voight
people
News
Bill Kerr has died aged 92
people
Life and Style
A picture taken on January 12, 2011 shows sex shops at the Paris district of Pigalle.
news
Sport
footballPremiership preview: All the talking points ahead of this weekend's matches
News
Keira Knightley poses topless for a special September The Photographer's issue of Interview Magazine, out now
people
Voices
The Ukip leader has consistently refused to be drawn on where he would mount an attempt to secure a parliamentary seat
voicesNigel Farage: Those who predicted we would lose momentum heading into the 2015 election are going to have to think again
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Java Developer - 1 year contract

    £350 - £400 Per Day: Clearwater People Solutions Ltd: Our client based in Cent...

    Junior Analyst - Graduate - 6 Month fixed term contract

    £17000 - £20000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...

    IT Support - Hampshire - £24,000

    £19000 - £24000 per annum + benefits: Ashdown Group: The Ashdown Group have be...

    Research and Insight Analyst (Mathematics Graduate)

    £25000 - £35000 Per Annum: Clearwater People Solutions Ltd: Our client are cur...

    Day In a Page

    Ukraine crisis: The phoney war is over as Russian troops and armour pour across the border

    The phoney war is over

    Russian troops and armour pour into Ukraine
    Potatoes could be off the menu as crop pests threaten UK

    Potatoes could be off the menu as crop pests threaten UK

    The world’s entire food system is under attack - and Britain is most at risk, according to a new study
    Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

    Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

    Seoul's plastic surgery industry is booming thanks to the popularity of the K-Pop look
    From Mozart to Orson Welles: Creative geniuses who peaked too soon

    Creative geniuses who peaked too soon

    After the death of Sandy Wilson, 90, who wrote his only hit musical in his twenties, John Walsh wonders what it's like to peak too soon and go on to live a life more ordinary
    Caught in the crossfire of a cyber Cold War

    Caught in the crossfire of a cyber Cold War

    Fears are mounting that Vladimir Putin has instructed hackers to target banks like JP Morgan
    Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years

    Salomé: A head for seduction

    Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years. Now audiences can meet the Biblical femme fatale in two new stage and screen projects
    From Bram Stoker to Stanley Kubrick, the British Library's latest exhibition celebrates all things Gothic

    British Library celebrates all things Gothic

    Forthcoming exhibition Terror and Wonder: The Gothic Imagination will be the UK's largest ever celebration of Gothic literature
    The Hard Rock Café's owners are embroiled in a bitter legal dispute - but is the restaurant chain worth fighting for?

    Is the Hard Rock Café worth fighting for?

    The restaurant chain's owners are currently embroiled in a bitter legal dispute
    Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival

    In search of Caribbean soul food

    Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival
    11 best face powders

    11 best face powders

    Sweep away shiny skin with our pick of the best pressed and loose powder bases
    England vs Norway: Roy Hodgson's hands tied by exploding top flight

    Roy Hodgson's hands tied by exploding top flight

    Lack of Englishmen at leading Premier League clubs leaves manager hamstrung
    Angel Di Maria and Cristiano Ronaldo: A tale of two Manchester United No 7s

    Di Maria and Ronaldo: A tale of two Manchester United No 7s

    They both inherited the iconic shirt at Old Trafford, but the £59.7m new boy is joining a club in a very different state
    Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

    Robert Fisk: No victory for Israel despite weeks of devastation

    Palestinians have won: they are still in Gaza, and Hamas is still there
    Mary Beard writes character reference for Twitter troll who called her a 'slut'

    Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

    The Cambridge University classicist even wrote the student a character reference
    America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

    America’s new apartheid

    Prosperous white districts are choosing to break away from black cities and go it alone