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10 of 11 people found the following review helpful
5.0 out of 5 stars Sustaining a Relationship Marketing Idea: Insiders' story,
This review is from: Scoring Points: How Tesco Continues to Win Customer Loyalty: How Tesco Is Winning Customer Loyalty (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.
2) INTERNAL CULTURE CLASH. It's not easy to get everyone in the firm to be oriented towards relationship marketing and make use of the available information. Transaction marketing is usually much easier and less demanding of the organization than real relationship building. "Scoring points" also covers these issues where the competition for resources from the top management is one issue and the relationship to the shop managers and shop assistants is another area. And it doesn't happen overnight - it usually takes several years with constant focus and commitment. The programme had testing phases, and needed many quick wins in several stores to obtain interest from other shop managers. Tesco's lesson in taking the time to make relationship marketing a part of an organization's culture is very valuable - and replicates my experience from other industries.
3) PRIVACY ISSUES. Maybe your customers don't want close relationships. Perhaps your customers even resent knowing that you have collected too much information about them.
Tesco's story should be required reading for everybody that would like to understand a long-term relationship marketing concept in depth. I find that the real strength of the book is the chapters on how to preserve the programme. This story is often untold.
8 of 9 people found the following review helpful
4.0 out of 5 stars Highly Recommended!,
This review is from: Scoring Points: How Tesco Continues to Win Customer Loyalty: How Tesco Is Winning Customer Loyalty (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.
12 of 16 people found the following review helpful
4.0 out of 5 stars Easy to read and comprehensive account,
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This review is from: Scoring Points: How Tesco Continues to Win Customer Loyalty: How Tesco Is Winning Customer Loyalty (Hardcover)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.
3 of 5 people found the following review helpful
5.0 out of 5 stars Behind the scenes of the best loyalty system,
By A Customer
2 of 5 people found the following review helpful
5.0 out of 5 stars It's good,
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Scoring Points: How Tesco Continues to Win Customer Loyalty: How Tesco Is Winning Customer Loyalty by Terry Hunt (Hardcover - 3 Oct 2003)
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