Every three months, millions of people in the UK receive a magazine from the cou

Question

Every three months, millions of people in the UK receive a magazine from the country’s number one retailing company, Tesco. Nothing exceptional about the concept—almost all leading retailing companies across the world send out mailers/magazines to their customers. these initiatives promote the store’s products, introduce promotional schemes and contain discount coupons. However, what sets Tesco apart from such run-of-the-mill initiatives is the fact … ‘Companies should be loyal to their customers—not the other way round.’ Taking into consideration the company’s strong performance since these efforts were undertaken, there would perhaps not be many who would disagree with her. Analyse Tesco’s Clubcards scheme in depth and comment on the various customer segmentation models the company developed after studying the data gathered. How did Tesco use the information collected to modify its marketing strategies? What sort of benefits was the company able to derive as a result of such modifications? What measures did Tesco adopt to support the CRM initiatives on the operational and strategic front? Is it enough for a company to implement loyalty card schemes (and CRM tools in general) in isolation? Why?

Please give best answer given that no other data about club card scheme is provided.

Explanation / Answer

Assumption:

1. No data about the clubcard is available.

2. Basic data like name, email address, DoB, home and office address must have been captured

3. Undertakings: privacy policy, protection of personal information, access to social media public profiles like facebook, twitter, pintrest, snapchat

How did Tesco use the information collected to modify its marketing strategies?

Marketing strategies must include - price, place, promotion and product. after understanding the demographies of your existing customers and potential customers the campaigns should be planned and executed. Campaign should be planned and executed and results should be published to relevant stakeholders to find out the success of the campaigns and if any corrective actions are required it should be take n immediatly.

collaboration with vendors, IT partmenrs, media parteners, marketing agnecies should be fully integrated and program management should be very strong.

What sort of benefits was the company able to derive as a result of such modifications?

as a result foolowing benefits can be achieved but are not limited to:

1. Increased ROI

2. Better palnned, managed and executed campaign

3. corrective actions can be taken immediatly

4. better collaboration

What measures did Tesco adopt to support the CRM initiatives on the operational and strategic front?

1. Customer centricity

2. 360 degree view of their customers

3. better customer service

all these led to better margings and increased revenues

Is it enough for a company to implement loyalty card schemes (and CRM tools in general) in isolation? Why?

Loyalty card schemes should never be implemented in isolation, it should be connected to all the customer touchpoints - online and offline. In omnichannel world where customers need the products anytime anywhere understanding the customre is very important and only loyalty programes can not achieve that. Loyalty should be part of business strategy and ntegrated with all the bsuiness functions.

for example - Target launced back to school campaign and promised very innovative lunch box for kids under 5-6 years of age in Dallas. and imagine a situation where the store in Dallas are Out Of Stock and that SKU is not available. the whole campaign will be flop. hence understanding the customer needs and then aligning all the business functions to acieve the objective is very important to be sucessful in rapidly chnaging retail era.

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