Case Study: Tesco Clubcard

It is important for Tesco to have motivated employees which can help them succeed and gain awards for the best customer services. Tesco’s employees also need to help the customers and other stakeholders in order for them to return. This could also lead to people buying more shares in the business. The influence is customer satisfaction, stock, whether the customer returns because of Tesco’s quality products and prices or whether their service is good, if they don’t then Tesco’s customer service is not good enough.

There exist numerous marketing hypotheses and frameworks that aim to better understand why customer relationships, retention and satisfaction are so important. For example, marketers try to segregate the different types of customer loyalty, framing them under factors of ‘repeat patronage’ and ‘relative attitude’. Also, customer loyalty levels are ranked along a “loyalty ladder” that identifies the most profitable customers to whom the firm should target marketing strategies towards. Finally, customer satisfaction, a driver of loyalty, is summarised into a conceptual framework known as “customer response zones”. The firm has two major goals in mind when implementing this strategy. Freed (2014) states Qantas’s intentions to “…boost engagement with customers and revenue from its loyalty partners”. It aims to build a culture of engagement associated with positive and personalised experiences in dealing with the company.

(Dick & Basu, 1994) Identify Customer loyalty as the strength in relationship between a relative attitude of an individual and the individuals repeated patronage. (Selnes, 1993)States customer loyalty comprises of the chance of repurchase, chance of swapping and willingness of recommending the service to others. Higher customer loyalty leads to higher switching barriers. (Hepworth & Mateus, 1994)State that customer loyalty is the customer’s intent of re buying the same service or product from the same company.

Which basically means to determine the value to customers and to initiate relationships, for example, the Tesco Clubcard scheme allows them to track the shopping habits of British families around 13Million. Tesco Clubcard loyalty is the most successful program in the world linked to Tesco customers to understand the loyalty and profit. Bonuses Tesco include: 1 point for every £ 1 that the customer pays, they can also get weak points when the items on special offers, and be received vouchers worth points that have been saved any money spent, and deals Clubcard value of 4X can be used in store or online this how long term relationship Tesco focuses with their

Thus, companies seek to strengthen customer loyalty. Brand loyalty is considered to tilt the consumer to purchase the package / product specific brand (Jacoby and Chestnut, 1978). Later, Oliver (1997) defined loyalty as "a deeply held commitment to REBUY or repatronize preferred product / service consistently in the future, thereby causing repetitive same-brand or same brand set purchasing, despite situational influences and marketing activities, which would result in causing switching behavior "(p. 34). This conceptual definition covers two different aspects of loyalty: the behavioral. This is consistent with an integrated conceptual framework proposed by Dick and Basu (1994), that customer loyalty is regarded as a "power relationship between the relative position of the individual and repeat

Developing a loyalty program is challenging. You team must understand what will keep your current customers interested and what will spark them to purchase multiple times.

Market players generally have a wide variety of potential customers, which considerably weakens buyer power. Although consumers in this industry may be loyal to particular brands or chains, loyalty to retailer brands is arguably less important than competitive pricing. Many supermarkets run rewards programs for frequent shoppers, such as Tesco’s ‘Clubcard’, and these schemes can help companies retain customers and reduce buyer power.

When it comes to developing a well-designed loyalty program, marketers should take into account the value being offered to consumers with respect to the prices of the products. This means that a company should offer reasonable rewards to the customers after they

According Baker M (2000), loyalty schemes is the “Overt attempt of exchanging partnership to build a long term relationship association, characterised by purposeful co-operation and mutual dependence on the development of social, as well as structural bonds with consumer”.

In this article, Brooks discusses how online businesses as well as regular businesses differ in benefitting from loyalty reward programs offered to customers. With the new age of technology becoming more and more prevalent, customers are less likely to actually travel to stores to purchase goods from businesses. The ones who do typically go to the places that

Founded back in 1914 in Victoria by George James Coles, Coles Supermarkets Australia Pty Ltd has undoubtedly developed and expanded over the century since its humble beginning. Starting out its early days as an average retail store, Coles has now successfully become a common name in households throughout Australia. In recent years since its acquisition by Wesfarmers back in 2007, it has now grown even more and in April 2012, the Coles group announced the substantial relaunch of its loyalty program called “flybuys” which was originally launched in 1994 as a joint venture with other companies. The article entitiled “Coles ups loyalty ante” is being reviewed and analyzed in this paper discusses about the revamped loyalty program offered by Coles,

Tesco has started its journey in 1919. Jack Cohen, the founder of Tesco used to sell groceries by collecting it from a stall situated at East End of London. Later on in 1929 Jack Cohen opened a shop named Tesco located at Burnt Oak North London. Slowly Tesco started to earn recognition all over England. By 1990 Tesco started to open more shops all over UK in order to become the biggest grocer shop in UK by beating Sainsbury. In 2000, Tesco expanded its market by introducing various other products which included electrical, personal finance, clothing, car insurance, home health, dental plans, and telecom. At present Tesco is operating in 13 countries and hopes to expand its market by operating in more countries. Tesco has become the largest retail store in Britain on the basis of both domestic market share and global sales.

Even though the theoretical model suggested that winning loyalty is a long-term process and might be affected by some internal and external factors, in the case of Tesco, it was very much a positive impact helping to enhance the buying experience of customers, along with capturing high marketing share. Das (2009) stated that there are many factors that define the impact of loyalty schemes. Some customers are price conscious, meaning loyalty points do not matter to them. On the other hand,

It has been seen that both the companies try to foster loyalty programs that helps to widen brand loyalty and builds brand equity by leaps and bounds. The loyalty card feature of Sainsbury takes into account the intangible profitable feature that is invested in corporate social responsibility, rather than monetarily and extrinsically benefitting customers directly. The layout in the website is user friendly and is easy to interpret. Hence, this is how value creation and proposition is identified (Balmer, 2012). Sainsbury involves itself in customer’s lives rather than conventionally providing services. In this case, the provider’s sphere is the extra Sainsbury funds invested for customer’s sphere (independent value- quality and price wise). Hence, a joint spherical value realm is created as Sainsbury’s through loyalty charity programs created as Sainsbury’s through loyalty charity programs (Gronroos & Voima, 2012).

As a PR assistant at Tesco you have been asked to give a speech to business students at the London School of Economics. In your speech you account for some of Tesco's current problems and comment on the company's efforts to solve them taking the changing consumer behavior into consideration.