Tesco Clubcard & Customer Loyalty
Tesco Clubcard, in a busy week, is used by millions of people. Without doubt , Tesco Clubcard is the UK’s most successful loyalty card.
The more you spend, while wielding the Tesco Clubcard, the more Tesco vouchers you receive.
Objectives and Aims
Tesco's main objective and aim in issuing Clubcard was to retain customer loyalty, and provide an incentive that other supermarkets were not pursuing. In practice, the customer loyalty that Clubcard generated was the main reason Tesco overtook Sainsbury as Britain’s leading grocer. But loyalty is not the only benefit generated by Clubcard. The information it provides on shopping habits is just as valuable.
Dunnhumby and Tesco
Dunnhumby, the marketing firm that runs Tesco Clubcard, has shown a huge rise in profits and is looking overseas to selling its services to other large retailers. Tesco has a controlling stake in Dunnhumby and three directors sitting on the board.
With Clubcard, Tesco can determine the time you shop, where you shop, how you pay and exactly what you buy. Shopping late at night at an out-of-town could make you a target for Tesco car insurance promotions. If you don’t buy bread, then Tesco can detect a possible problem with their in-store bakery.
Dunnhumby itemise Tesco’s products using about forty different distinguishing characteristics. For instance Hovis whole-wheat bread might get labelled as “traditional” and “price sensitive”, while sushi might be classified as “adventurous” and “up market”. Of course, customers can be labelled in the same way! Fortunately, given the power of this technique, Dunnhumby do not release any personal data on individual customers.
Loyalty Card Schemes at Sainsbury, ASDA, etc.
Sainsbury also has a loyalty card scheme, based on the Nectar card. But other retailers, like Asda, Lidl, and Marks & Spencer, do not have loyalty cards. Asda uses Wal-Mart software to help analyse the purchasing inclinations of its customers.
Promotion
The success of Tesco’s Clubcard mean they do not have to promote it with much fervour. Also, it’s automatically promoted every time you use the store. When you buy your shopping you will generally be asked if you have a card. If not, you may be offered one. But, more likely, the check-out staff will not bother to do this. Its reputation and low key promotion via leaflets and customer services is enough to get most customers on board.
Vouchers – how do you get them?
For each £1 you spend you get 1 point added to your Tesco Clubcard, as long as you present the card when checking out. Every few months you receive the vouchers through the post. Some utility companies, like Powergen, also give you points. Every few months you get vouchers that you can redeem at the store or through special deals.
Get the best rewards
It’s may not be worthwhile redeeming your Tesco Vouchers in-store. They are worth four times as much if you use them on Tesco Club card Deals. With the vouchers you can get discounts on Eurostar, car rentals, wine, roadside recovery, away days, and much else.
Tesco online vouchers
You are not limited to using vouchers in-store. Use them to order Clubcard Deals online or shop in-store.