Scoring Points

by Humby, Clive

• ISBN13: 9780749453381
• ISBN10: 0749453389
• Edition: 2nd
• Format: Paperback
• Copyright: 2008-09-01
• Publisher: Kogan Page Ltd

Summary

Scoring Points tells the dramatic story of how Tesco Clubcard was conceived, launched and developed. Clive Humby and Terry Hunt, two major influences behind Tesco's (one of the UK's largest supermarket chains) spectacular transformation, and Tim Phillips, a leading business writer and broadcaster, bring us a compelling behind-the- scenes account of Clubcard: the successes, the failures and the lessons learnt. The authors show how Tesco made customer loyalty marketing work, when almost every other loyalty programme failed, and illustrate the benefits for Tesco and its customers. Scoring Points is one of the seminal marketing books of the last decade. A fascinating tale of what can be achieved through vision, a strong team ethic and a company-wide commitment to customer satisfaction, it is an inspirational read for anyone in business.

Author Biography

Clive Hunby is Visiting Professor, Integrated Marketing, at Northwestern University and chief information architect of Tesco Customer Management.  Terry Hunt is chairman of EHS Brann, one of the largest direct marketing agencies in the world.  Tim Phillips is a journalist and author of Knockoff (Kogan Page).

Table of Contents

Foreword	p. ix
Introduction	p. 1
Questions of loyalty	p. 7
In the beginning	p. 7
What is loyalty?	p. 9
The secrets of success	p. 14
Is customer loyalty genuine?	p. 16
Making loyalty pay	p. 19
The economics of loyalty marketing	p. 19
Playing a zero sum game	p. 24
The foundations of a loyalty scheme	p. 27
Four loyalty 'currencies'	p. 30
Does a loyalty programme pay?	p. 32
Clubcard on trial	p. 34
The trials	p. 34
Tesco and loyalty in history	p. 39
Project Omega	p. 45
The DNA of loyalty	p. 49
Rediscovering the customer	p. 51
Because we can	p. 57
The national launch	p. 57
The need for speed	p. 59
'Electronic Green Shield Stamps' catch on	p. 63
What made the launch a success?	p. 64
Every little helped	p. 67
The Clubcard effect	p. 67
The loyalty contract	p. 68
The first quarterly mailing	p. 71
Waiting for the zero sum effect	p. 76
Maintaining momentum	p. 81
Data, lovely data	p. 90
Drinking from the fire hose	p. 90
Measuring customer loyalty	p. 95
The problems with data warehouses	p. 97
Making a warehouse work	p. 101
What Tesco learnt about data	p. 105
Four Christmases a year	p. 108
The Banana Man of Worcester	p. 108
To mail, or not to mail?	p. 110
Auditing the Clubcard statement	p. 112
Licensed to print money	p. 114
The 'Quarterly me'	p. 117
What Tesco learnt about mail	p. 119
You are what you eat	p. 122
Five years of work	p. 122
Five problems for the data to solve	p. 123
The loyalty cube	p. 126
Discovering that you are what you eat	p. 129
Baskets become Buckets	p. 132
Buckets become Lifestyles	p. 134
Lifestyles become habits	p. 137
Using all the data	p. 137
The Rolling Ball	p. 141
Shopping Habits	p. 145
Big Brother	p. 146
Segments at work	p. 148
Launching a bank	p. 150
Clubcard Plus	p. 150
Outbanking the banks	p. 153
The bank of Tesco	p. 157
Sainsbury's bites back	p. 160
A new way of banking	p. 164
The Clubcard effect in a new business	p. 167
Babies, beauty and wine	p. 169
Strengthening the bond	p. 169
The inner circle	p. 173
Baby Club	p. 175
Clubcard pizza	p. 181
What Tesco learnt about 'sub-clubs'	p. 185
A bigger deal	p. 188
Partners for Clubcard	p. 189
Solo, shared and outsourced	p. 191
The early Clubcard partnerships	p. 196
Clubcard Deals	p. 201
Broadening the offer	p. 205
From mouse to house	p. 211
'It's our job to make home shopping work'	p. 211
Tesco on the internet	p. 215
Real shoppers, real stores, real advantage	p. 217
The bubble that didn't burst	p. 220
How it's different online	p. 223
Becoming a non-food e-tailer	p. 229
How Clubcard helped Tesco.com	p. 231
Back to basics	p. 233
Ask the audience	p. 235
Simplifying Clubcard	p. 238
Simple marketing	p. 250
Clubcard overseas	p. 254
Is customer loyalty the same everywhere?	p. 256
Crossing the Atlantic	p. 260
Slaughtering sacred cows	p. 264
dunnhumby USA	p. 268
A journey with Kroger	p. 270
'Tesco's most potent weapon'	p. 271
A critical function	p. 272
Smart weapons in the price war	p. 273
The Shop	p. 276
Making promotions work harder	p. 279
Three little words	p. 281
Acknowledgements	p. 283
Index	p. 285
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