Scoring Points: How Tesco Continues to Win Customer Loyalty / Edition 2

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Launched in 1995, Tesco Clubcard is the world's most successful retail loyalty scheme. Tesco has transformed its relationship with its customers. Today it is not only the United Kingdom's number one retailer, but the world's number three - and arguably the world's most successful exponent of customer relationship management.

This second edition of Scoring Points updates the dramatic story of how Clubcard was developed and includes a new chapter on how, with Kroger - the largest US grocery retailer - these methods have been adapted for the US retail market. The authors bring us a compelling behind-the-scenes account of Clubcard - the successes, the failures and the invaluable lessons learned.

A fascinating tale of what can be achieved through vision, a strong team ethic and a company-wide commitment to customer satisfaction, the second edition of Scoring Points is an inspirational read for anyone in business.

About the Author:
Clive Humby is chairman and founder of leading marketing analysts dunnhumby. He is the chief information architect behind Tesco's customer management and segmentation programme

About the Author:
Terry Hunt is chairman of EHS Brann, one of the largest direct marketing agencies in the world. He has helped steer the development, launch and creative strategy of Tesco Clubcard

About the Author:
Tim Phillips is a well-known business journalist and broadcaster. The author of four previous books, he writes regularly for the mainstream press, and often appears on BBC TV and radio and on Sky News

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Editorial Reviews

From the Publisher

"Thought provoking." -- Chain Store Age
Northwestern University - Professor Don Shultz
"This is the future of marketing. Read it and profit."
Chain Store Age
"Thought provoking."
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Product Details

  • ISBN-13: 9780749453381
  • Publisher: Kogan Page, Ltd.
  • Publication date: 9/1/2008
  • Edition description: Second Edition
  • Edition number: 2
  • Pages: 304
  • Product dimensions: 6.10 (w) x 9.10 (h) x 0.90 (d)

Meet the Author

Clive Humby 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).

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Table of Contents

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