TESCO - WHAT IS ITS IT's ADVANTAGE?

When TESCO introduced its Clubcard, many competitors thought that it was just replicating the “green shield stamps operation” it had launched in the 60’s: a commercial operation that leaded to interesting discounts for the customers. The British media reported it was a “nostalgic step backwards”... But time proved they were wrong. Six months after the Clubcard introduction, Tesco’s market shares increased from 15% to 18%.

It is true that TESCO’s clubcard was also a loyalty program, but the big difference, and here comes Tesco’s IT advantage, was that it was accompanied and supported by a good CRM (Client Relationship Management) platform.

Thanks to its CRM platform Tesco managed to compile important information about its customers habits, preferences, wishes etc… that it used to adapt its service and serve its customers in a better way.

I wanted to finish this post by citing Lord MacLaurin, former Chairman of Tesco.

“Customer loyalty is not about how customers demonstrate their loyalty to us, it is about how we demonstrate our loyalty to them."

Understanding this was TESCO’s main element of success.