M&S Sparks rewards overhauled as retailer offers cash perks
Marks & Spencer has overhauled its Sparks card reward scheme using AI after shoppers demanded cash perks instead of the existing points-based system.
The upmarket food and clothing giant said it is responding to consumer criticism of its loyalty scheme by offering “personalisation and pounds, not points and tricksy pricing”.
The Sparks Card had faced the ire of shoppers for offering personalised deals and discounts, rather than allowing consumers to trade in points for real money to spend in store – like Tesco’s Clubcard and Sainsbury’s Nectar.
Stuart Machin, chief executive of M&S, said the retailer has listened to shoppers’ criticism of Sparks rewards.
M&S vows end to ‘tricksy pricing’
He said: “Customers told us they want Sparks to be simple, rewarding and personalised, and we listened.
“New Sparks is built around a much more personalised experience, no tricksy pricing and real money rewards to thank our customers for shopping with us.”
M&S revamp of the rewards system means shoppers can earn real money as they shop, to spend across any part of the retailer.
The firm is betting on AI to drive this new scheme, as the retailer’s app uses machine learning to develop personalised offers and rewards.
The Sparks overhaul sees M&S mounting a direct challenge to Tesco, whose Clubcard uses AI to offer tailored deals.
Earlier this week, Tesco announced a partnership with tech firm Adobe to drive investment in artificial intelligence to track consumer spending and drive Clubcard discounts.
Retailers bet on AI to drive discounts
Machin said: “A stronger Sparks is another step forward on our journey as we invest for future growth.
“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.”
The retailer’s new earn-as-you-spend rewards mean shoppers can make £10 on their Sparks wallet for every £50 they spend on fashion, home and beauty.
Shoppers can bag an extra £1 for every £10 they spend on fresh fruit.
M&S has partnered with Virgin to offer shoppers up to £130 off holiday bookings.
Sharry Cramond, marketing director of fashion, home & beauty and loyalty at M&S, said: “We are so excited to finally unveil the new Sparks – it’s a complete step change in how we reward our customers.”
M&S’ focus on savings comes as manufacturers warn the Iran war could push up the cost of groceries.
The Food and Drink Federation (FDF), which represents the UK’s food and drink producers, has said food inflation will hit nine per cent this month – triple the current rate.
Food inflation could soar to double digits if the war persists for more than a few weeks, the trade body said.