Scoring Points : How Tesco Is Winning Customer Loyalty

by Humby, Clive

• ISBN13: 9780749435783
• ISBN10: 074943578X
• Format: Hardcover
• Copyright: 2004-02-01
• Publisher: Kogan Page Ltd

Summary

The story of how Tesco used Clubcard - its loyalty scheme - to reinvent itself and its relationship with its customers, in the words of the people who were there. Between 1995 and 2003, the UK's second largest grocer came not only to dominate supermarketing in the UK, but created on or Europe's fastest growing financial service companies, launched the world's largest internet grocery business and created a global retail giant selling everything from travel insurance to television. How was this achieved? By getting to know its customers better. The masterminds behind this transformation tell the inside story. It is a behind-the-scenes look at what customer loyalty means, how it works, and how it should change the way companies sell and the way we shop.

Table of Contents

Foreword	xi
Introduction	1	(6)
Questions of loyalty	7	(12)
In the beginning	7	(2)
What is loyalty?	9	(5)
The secrets of success	14	(3)
Is customer loyalty genuine?	17	(2)
Making loyalty pay	19	(16)
The economics of loyalty marketing	19	(5)
Playing a zero sum game	24	(4)
The foundations of a loyalty scheme	28	(2)
Four loyalty 'currencies'	30	(2)
Does a loyalty programme pay?	32	(3)
Clubcard on trial	35	(24)
The trials	35	(5)
Tesco and loyalty in history	40	(6)
Project Omega	46	(4)
The DNA of loyalty	50	(2)
Rediscovering the customer	52	(7)
Because we can	59	(12)
The national launch	59	(2)
The need for speed	61	(4)
Electronic Green Shield Stamps catch on	65	(2)
What made the launch a success?	67	(4)
Every little helped	71	(24)
The Clubcard effect	71	(1)
The loyalty contract	72	(3)
The first quarterly mailing	75	(5)
Waiting for the zero sum effect	80	(5)
Maintaining momentum	85	(10)
Data, lovely data	95	(18)
Drinking from the fire hose	95	(4)
Measuring customer loyalty	99	(2)
The problems with data warehouses	101	(5)
Making a warehouse work	106	(4)
What Tesco learnt about data	110	(3)
Four Christmases a year	113	(12)
The Banana Man of Worcester	113	(1)
To mail, or not to mail?	114	(3)
Auditing the Clubcard statement	117	(2)
Licensed to print money	119	(3)
What Tesco learnt about mail	122	(3)
The quarterly me	125	(8)
Clubcard Magazine	125	(4)
Segmenting the magazine	129	(2)
Keeping the magazine fresh	131	(2)
You are what you eat	133	(18)
Five years of work	133	(1)
Five problems for the data to solve	134	(3)
The loyalty cube	137	(3)
Discovering that you are what you eat	140	(3)
Baskets become Buckets	143	(2)
Buckets become Lifestyles	145	(6)
Lifestyles become habits	151	(14)
Using all the data	151	(4)
The Rolling Ball	155	(4)
Shopping Habits	159	(1)
Big Brother	160	(2)
Segments at work	162	(3)
Launching a bank	165	(18)
Clubcard Plus	165	(3)
Outbanking the banks	168	(4)
The bank of Tesco	172	(3)
Sainsbury's bites back	175	(4)
A new way of banking	179	(3)
The Clubcard effect in a new business	182	(1)
Babies, beauty and wine	183	(20)
Strengthening the bond	183	(4)
The inner circle	187	(2)
Baby Club	189	(6)
Clubcard pizza	195	(4)
What Tesco learnt about 'sub-clubs'	199	(4)
A bigger deal	203	(22)
Partners for Clubcard	203	(2)
Solo, shared and outsourced	205	(5)
The early Clubcard partnerships	210	(5)
Clubcard deals	215	(5)
Deals becomes Freetime	220	(5)
From mouse to house	225	(22)
'It's our job to make home shopping work'	225	(4)
Tesco on the Internet	229	(2)
Real shoppers, real stores, real advantage	231	(3)
The bubble that didn't burst	234	(3)
How it's different online	237	(5)
Becoming a non-food e-tailer	242	(2)
How Clubcard helped Tesco.com	244	(3)
Five challenges for the future	247	(18)
Ten years on	247	(1)
Can Clubcard become a global scheme?	248	(5)
Can Clubcard remain the most popular loyalty programme in the UK?	253	(1)
Can Clubcard make promotions work better?	254	(4)
Can Clubcard issue instant rewards?	258	(2)
Can Clubcard help Tesco's suppliers?	260	(2)
The customer contract renewed	262	(3)
Acknowledgements	265	(2)
Index	267