Download PDF by Clive Humby: Scoring Points: How Tesco Is Winning Customer Loyalty

By Clive Humby

ISBN-10: 074943578X

ISBN-13: 9780749435783

ISBN-10: 1417563028

ISBN-13: 9781417563029

* 10 million consumers in Britain are energetic contributors of Tesco Clubcard, the world's such a lot profitable retail loyalty scheme

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Extra info for Scoring Points: How Tesco Is Winning Customer Loyalty

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The risks were high. The change would have had much less impact if the plans had leaked out and the competition had been able to create a spoiler campaign. The theatrical flourish of whitewashing the Clubcard on trial ❙ 45 windows and closing all the stores for a working day created maximum impact on the customers, and created the sort of excitement around the Tesco brand that it had not achieved for years. Operation Checkout taught Tesco the importance of ‘first mover’ advantage. MacLaurin’s radical and risky strategy let Tesco management rediscover the value of being an innovator.

DOES A LOYALTY PROGRAMME PAY? A mass-membership programme is a long-term, expensive undertaking. But when it works, it repays the investment many times over and in many ways – as Tesco has proved. Clubcard has transformed customer behaviour and attitudes. It has provided unprecedented levels of hard information that no other source could provide. And this is systematically transformed into rich, actionable customer insight. Clubcard has helped Tesco create new businesses. It has created incremental sales and profits.

20 ❙ Scoring Points: How Tesco is winning customer loyalty For Tesco, that is a £1 billion rebate to customers since 1995, at a time when falling grocery prices have squeezed margins on its core business. 0 per cent. 6 per cent. The cost of the rebate is only one overhead of a loyalty programme. McKinsey again: the costs of marketing and managing a programme – investment in systems, fulfilment support, and so forth – which normally run well into millions… Many retailers seriously underestimate the full cost of setting up and sustaining loyalty programmes, so even those that increase sales might actually be draining money.

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Scoring Points: How Tesco Is Winning Customer Loyalty by Clive Humby

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