Tesco CRM Case Study
Tesco is the second largest retailer in the world measured by profits, and the third largest measured by revenue. Not only does it have stores in 14 countries across Asia, Europe, and North America, but it’s also the grocery market leader in the UK, Malaysia, the Republic of Ireland, and Thailand.
Although their success can mostly be attributed to their competitive pricing, comprehensive product and service range, affiliated programs, and global accessibility, their aggressive marketing and CRM strategies have played a central role in helping them retain their competitive advantage and large marketshare.
The Tesco Loyalty Card / ClubCard Scheme
- One of the worlds most successful loyalty schemes
- Partners with other companies such as gas, hotel and car hire facilities thus giving users more opportunities to earn points
- Different schemes for different family members: Tesco Kids Club, Tesco Baby and Toddler Club, Tesco Healthy Living Club, World of Wine Club
- Allows for targeted communication, thus, there are over four million variations of its quarterly mailing to ensure that discounts and offers are tailored specifically for the customer
- Insights gained from the analysis of shopping patterns were able to be actioned into marketing and retail programs which encouraged customer satisfaction and loyalty to Tesco.
Customer Question Time sessions are held twice each year, where 12,000 customers participate. This enables Tesco to gather more data on customer views on product, price, quality, service, and community involvement
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Product Offerings and Ranges
Using data gathered from Clubcard and comment cards, Tesco have been able to create a variety of product ranges to suit different target groups, such as:
- Healthy Living: Over 400 products which are low in fat and sodium
- Free From: Produced for people who have food allergies or dietary requirements
- Special Healthy Kids Snacks: A dedicated range of kids food products that are high in fibre, fruit and vegetables