Tesco

Tesco’s case:

Tesco has a reputation for innovative information solutions, and its ‘Clubcard’ loyalty scheme and web sites are central to this. Tesco is the UK’s largest retailer and therefore has a significant customer base on which analysis can be performed. Because many of those customers return at weekly or similar intervals, Clubcard data and relationships are both deep and wide. Accordingly, Clubcard has significant potential to influence consumer behavior in the UK.

There are different dimensions of Tesco’s online customer experience, including ease of use, speed of site, relevance, value, service, and product development. Tesco is continually developing more online products to meet the needs of the customers.

There are three dimensions to Tesco’s use of technology in marketing information gathering and planning. The first aspect is data collection, of which the Clubcard that could be scanned at the till is an important foundation. Later, ‘EPOS’ tills were installed that could collect every transaction. Clubcard engages with a large number of corporate partners in relation to the earning and delivery of rewards. Tesco allows customers to gain rewards from activities as disparate as travel, dry cleaning, and car maintenance. In addition, many of these activities will be performed in the locality of the Tesco store that the customer normally uses, and from a customer experience perspective extends their engagement with the local retailing community. From a customer data perspective, the opportunity to earn Clubcard points through partner organizations means that Tesco is able to expand its customer profiles relating to their consumption activities to arenas beyond supermarket shopping.

The second aspect is customer interactions – customers can collect points through the scheme through transactions with various partners, and through their online purchases. Tesco manage a portfolio of interactions that the customer has with the brand, and seek to reward...