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Scoring Points: How Tesco Continues to Win Customer Loyalty: How Tesco Is Winning Customer Loyalty Hardcover – 3 Oct 2003


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Product details

  • Hardcover: 272 pages
  • Publisher: Kogan Page; 1 edition (3 Oct. 2003)
  • Language: English
  • ISBN-10: 074943578X
  • ISBN-13: 978-0749435783
  • Product Dimensions: 16.4 x 2.5 x 24.4 cm
  • Average Customer Review: 4.7 out of 5 stars  See all reviews (6 customer reviews)
  • Amazon Bestsellers Rank: 115,801 in Books (See Top 100 in Books)
  • See Complete Table of Contents

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Review

"Thought-provoking and relatively balanced chapters for those interested in card strategy." (Chain Store Age)

Book Description

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.

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10 of 11 people found the following review helpful By Peter Leerskov on 18 Oct. 2004
Format: Hardcover
It's very seldom that you get to hear the real story behind a relationship-marketing programme. This book provides a brilliant insight into the real world of a successful loyalty programme at Tesco. It is a success story told by insiders (primarily the subcontractors).
The focus is on the Clubcard, but it also contains an interesting chapter on their online shopping success that is created on the basis of many of the same competences that the loyalty card required.
I'd like to put the book into perspective by playing devil's advocate. So what's the downside of a loyalty programme? Three problems usually hinder the success: big investment, internal culture clash, and privacy issues.
1) BIG INVESTMENT. It's expensive to develop the database - and even more expensive to maintain it. Especially the latter point is usually forgotten, while most people haven't yet tried to sustain a loyalty programme. The fact is namely that it eventually always risk running out of steam after the first breathtaking love affair for both the customer and the company.
"Scoring points" has devoted some attention to the development phase, where the Clubcard was "skunk work" without much prestige in the big British retail operation. But I like the second part of maintaining the magic of the relationship even better (because this story is so rarely told). They explain how to keep the loyalty programme alive and kicking for the customers by micro-segmentation, adding financial services, creating multi-channel retailing including the web, and so on to keep the concept fresh. The book also spends a lot of time explaining how the customer data can be used to see trends and also get new understanding of the customers' behaviours that we haven't been able to before.
2) INTERNAL CULTURE CLASH.
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8 of 9 people found the following review helpful By Rolf Dobelli TOP 500 REVIEWER on 31 Mar. 2005
Format: Hardcover
Marketing experts Clive Humby and Terry Hunt and journalist Tim Phillips explain how British grocer Tesco collected, analyzed and used customer data to become a retail giant. Tesco paired its Clubcard loyalty scheme with jazzy information technology (IT) to set a new standard for knowing your customer. Humby and Hunt, as the collaborators behind Tesco's data-driven transformation, focus on praise, but they don't hide Tesco's early mistakes or skimp on its strategic hand-wringing. Though somewhat dryly written, the book compellingly discusses aspects of loyalty programs that don't get much ink outside the retail trade press. For example, it covers the way Tesco's accumulation of rich customer data forced some painful changes in its corporate culture. The authors also serve a sampling of delicious anecdotes and share Tesco's early difficulty with getting some customers - chiefly students - to join Clubcard. Tesco once gave students at a Q&A focus group some complimentary wine and cheese only to find that they "swiftly drank so much wine that they made little sense to anyone still sober." The book shines when discussing such early efforts by Tesco to micro-segment customers by lifestyle habits, including trying to glean individual personality traits from the contents of each grocery cart. We recommend this case study both as the story of Tesco's gutsy, groundbreaking experiment with IT and as a textbook example of how the Digital Age keeps making it possible for smart, daring businesspeople to rewrite the rules of commerce.
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12 of 16 people found the following review helpful By Joe on 12 Jan. 2004
Format: Hardcover Verified Purchase
Bought this book as I work in this area (databases, customer segmentation, analysis). This is an excellent and easy to read account not only of what they did technically (high level), but how they made it work from a project point-of-view.
I'd recommend this book to anyone looking at analysing their customer base, for pragmatic lessons learned of what to analyse and how to go about it.
This book also examines some myths of the industry, such as that it's necessary to be able to market 1 to 1 to your customers, or that customers want a 'relationship' with their suppliers.
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