With news out this week that Tesco is to launch a wine brand which will be created by consumers, the supermarket giant looks likely to set a new benchmark for customer engagement.

With news out this week that Tesco is to launch a wine brand which will be created by consumers, the supermarket giant looks likely to set a new benchmark for customer engagement. Tesco kicked off its innovative ‘crowd-sourced’ project by inviting wine bloggers and members of Tesco’s social media community to a wine-tasting event, where attendees were asked to vote on which of the wines presented should be sold in Tesco stores.

This real world event is just the beginning, however. A social media campaign now begins in earnest, with consumers being asked to come up with names for the wine and even suggest designs for its bottle. With projects like these, Tesco provides a great example of an old-fashioned retail business that isn’t afraid to innovate. By harnessing the power of social media in this way, the company will be able to capture younger, more socially aware customers who are extremely loyal and feel connected with the brand.

A lot has been said about the importance of capturing the ‘voice of the customer’ but it seems as if Tesco really understands the value of this. Today’s consumers like to see their input in everything from special offers and store layout to specialty items and product development. Just look at how successful the Walkers Crisps Do Us a Flavour campaign has been over the years, or how Nestlé encouraged greater customer engagement with its Choose a Chunky Champion stunt for Kit Kat.

At the same time, Tesco is also using its physical store locations to build on these digital relationships. In fact, the company has just signed a major deal with Xercise4Less to provide a number of in-store gyms. The first site to be taken on, which has just passed the planning stage, will see Xercise4Less taking on nearly 32,000 square feet of space at Tesco’s Durham Road store in Stockton-on-Tees. This novel venture into the exercise world is expected to be the first of a series nationwide.

There is no reason why this kind of diversification - both in the physical world and via social media - can’t deliver benefits for everyone involved. After all, whether winemakers, garden centres or fitness firms, Tesco will be able to extract value from its property portfolio, boost customer engagement and, most importantly, establish itself as part of the fabric of everyday life. In a sector like grocery, where innovation has often been lacking, it’s exciting to see Tesco taking bold decisions and redefining customer relationships along the way.

  • Dan Coen, director, Zolfo Cooper

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