How Tesco is Winning Customer Loyalty

The book: Scoring Points - How Tesco is Winning Customer Loyalty, by Clive Humby, Terry Hunt and Tim Phillips

Review by: Olly Raeburn, managing partner at Liquid Communications

Scoring Points is the updated and revised warts-and-all story of 12 years of Tesco Clubcard – ‘the world’s most successful retail loyalty scheme’ say the authors.

It’s the tale of a beautiful relationship. There is loyalty, gratitude, understanding …and £100 million incremental sales annually. Everybody’s happy: the shareholders, the executives, the staff and most importantly of all, the customers, who have shared £1 billion-worth of vouchers to date.

The Clubcard is also a great barometer of customer sentiment. The scheme has given Tesco a very responsive and valuable customer satisfaction tool, since points are easily trackable.

What is the Clubcard’s magic ingredient then? Simplicity. From its point-collecting mechanism to its Lowe Howard-Spink ‘Every little helps’ adverts and one-page membership form, it seems the Tesco customer prefers the ‘KISS’ approach – Keep it Simple, Stupid! And when it got complicated (marketers can’t resist tinkering), Tesco simplified it again, getting rid of add-on deals. There’s a valuable lesson there for businesses in any sector.

See also: What Tesco can teach us – Ken Jacobson, CEO of Vistage International, lists some of the key pointers to Tesco’s success.

Marc Barber

Marc Barber

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

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