Several U.K. retailers are accelerating a new phase of tech transformation in their loyalty programs, as AI enables a shift from broad-based incentives to highly individualized engagement strategies.
Recent announcements from Marks & Spencer (M&S), Tesco and Boots indicate that loyalty is becoming increasingly dynamic, predictive and embedded across the customer journey.
M&S Uses AI and Data to Revamp Sparks
Marks & Spencer has relaunched its Sparks rewards program with a step change in the use of AI and data” as it focuses on digital transformation to drive growth. The announcement stated:
“For the first time, M&S will use a suite of transformed AI and data capabilities to power Sparks including machine learning, and advanced generative AI models coming soon after, that will deliver even more personalized offers and rewards.”
The idea is that the more customers use the program, which has around 18 million members, the better and more personalized the shopping experience.
The updated scheme centers on a digital wallet that delivers personalized monetary rewards based on individual shopping behaviors, such as category spend or cross-department purchasing.
M&S CEO Stuart Machin said:
“Powered by new and transformed data and AI capabilities, a new Sparks helps us get even closer to customers and deliver an even better M&S experience.”
That signals a departure from static perks towards contextual incentives designed to influence behavior in real time. Customers are encouraged to explore new categories through tailored offers and rewards for spending in parts of M&S where they don’t usually shop. A new personalized Sparks hub on the M&S app brings together offers based on preferences that customers share and what they have purchased before.
Partnerships, such as with Virgin Red, extend the value exchange beyond the retailer’s own ecosystem. The approach indicates how loyalty is evolving into a broader engagement platform, rather than a standalone scheme.
Tesco Scales AI Personalization Through Strategic Adobe Partnership
Tesco’s newly announced strategic partnership with Adobe takes this a step further, embedding AI deeply into personalization.
By combining Adobe’s agentic AI capabilities and Adobe Firefly Foundry with data from its Clubcard program, Tesco said its personalization and AI teams will be able to use customer intelligence to anticipate customer needs and deliver more relevant content, offers and recommendations across channels.
The Clubcard scheme is one of the largest loyalty programs in the U.K. retail sector, used more than 24 million households.