We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Loyalty card and customer loyalty: case study of Tesco in UK (Aldershot location) - Essay Example

Comments (0) Cite this document
Summary
CHAPTER 1 Introduction 1.1 Introduction Over the past years many service providers and retailers have introduced loyalty schemes as a strategy of retaining customers. The Customers join the loyalty schemes by completing a form with their personal details i.e…
Download full paperFile format: .doc, available for editing
Polish This Essay98.5% of users find it useful
Loyalty card and customer loyalty: case study of Tesco in UK (Aldershot location)
Read TextPreview

Extract of sample
"Loyalty card and customer loyalty: case study of Tesco in UK (Aldershot location)"

Download file to see previous pages about the preferences in terms of products or services. The importance of having a database on customer purchase profiles is that it helps in segmentation of the retailers’ customer base, hence ensuring that the right marketing strategies are used such as direct marketing and special offers to meet customers’ requirements (Rowley, 2005). Loyalty schemes are widely used by different sectors in the retails, for example the travel agents, financial service providers, hospitals and supermarkets. Loyalty cards are an important tool of marketing. Retailers around the world – from Tesco to smaller chains – use loyalty cards to retain existing customers, generate new customers; gather data on the customer decision process and increase the spending of the customers in their stores (Sharp, Byron and Anne Sharp, 1997).The Clubcard loyalty card scheme of Tesco has the same objectives. It is the most important part of customer relationship management (CRM) of Tesco. The objective of CRM at Tesco is to increase the brand in consumer preferences to such a level that becomes a lifetime customer of Tesco. This enables Tesco to utilize the lifetime economic value of the customer. It is three times easier to continue with the present customer than to attract a new one (Philip Kotler, Kevin Kohler, 2006). This mindset guides the loyalty card scheme at Tesco. Besides this the loyalty card scheme, the Clubcard, succeeded in increasing the revenues of Tesco. This increase in revenues happened at Tesco stores, like the one in Aldershot, as the average customer started spending more for the reason that discounts and motivators offered by the Clubcard. In 1996 – a year after the Clubcard was introduced by Tesco- the Aldershot store recorded a growth of 20% in its top-line (revenues). There are also costs associated with loyalty card schemes similar to the Clubcard. These costs come from the discounts and rebates offered to the customers. They have other cause of reducing the already low margins on which most retailers like Tesco operate. However, empirical evidence at Tesco stores, like the one at Aldershot, shows that the loss in margin is more than offset by the huge increase in volumes caused by loyalty cards like the Clubcard. Therefore, loyalty cards like the Clubcard have a favourable influence on the profit of the retailers. The Clubcard scheme increased the profits of Tesco at the store level as well as at the consolidated level. It ended up creating great value for the shareholders of Tesco. While the biggest benefit of loyalty cards like the Clubcard is a strategic or long term in nature. They enable retailers to collect information the way customer do their shopping like TESCO (Fred Reichheld, 1996). The Clubcard has enabled Tesco to create a huge database of information on the buying behaviour and buying patterns of the customers. The company utilise this information to establish its strategy. The product present inside the Tesco stores, are continuously upgraded according to the information on the latest buying preferences of the customers, as revealed by the Clubcard. Tesco also utilize the information of customer buying behaviour very creatively for its in-store display of products. For example men tend to buy grocery items more during weekends. Therefore Tesco stores display other men products like beer next to grocery on weekdays. This ultimately enhances the sales of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Loyalty card and customer loyalty: case study of Tesco in UK Essay”, n.d.)
Loyalty card and customer loyalty: case study of Tesco in UK Essay. Retrieved from https://studentshare.org/management/1431284-loyalty-card-and-customer-loyalty-case-study-of
(Loyalty Card and Customer Loyalty: Case Study of Tesco in UK Essay)
Loyalty Card and Customer Loyalty: Case Study of Tesco in UK Essay. https://studentshare.org/management/1431284-loyalty-card-and-customer-loyalty-case-study-of.
“Loyalty Card and Customer Loyalty: Case Study of Tesco in UK Essay”, n.d. https://studentshare.org/management/1431284-loyalty-card-and-customer-loyalty-case-study-of.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Loyalty Card and Customer Loyalty: Case Study of Tesco in UK (Aldershot location)
Whether controlled or not controlled to create purchase occasion, customers need to gain confidence in the retailer in order to return for shopping. It is not controlled issue that has caused customer to make complaints. Lack of involvement with customer and lack of success to meet customer expectation lead to complain.
6 Pages(1500 words)Essay
Customer loyalty in Business
Customer loyalty deals with the behavior, attitudes and perceptions of customers. Customers are considered to be an asset for any business as they can provide good ratings, testimonials and evaluations to different products and services, which are available in the market (Reinchheld, 2006, 56).
4 Pages(1000 words)Essay
The Loyalty Effect of the Tesco Club-Card Toward its Members
There is always a reason for customer loyalty, it is believed, which behaviour differs from the one purchase to the next, and are not accidental (Ibid.). Morgan et al. (2000), however, makes distinctions between customer loyalty and customer retention. Accordingly, whereas the former usually involves both behavioral and attitudinal dimensions, the latter is purely behavioral.
16 Pages(4000 words)Essay
Customer Retention and Loyalty
The roles of consumers are changing, rather than they should run after the seller, the seller has to convince them and keep on reminding them about the seller’s existence in the market, it is very difficult these day to differ between the sentences “every thing is marketing” and “marketing is everything”.
6 Pages(1500 words)Essay
Loyalty And Customer Relationship Management In Banking Sector: Case Study Of HSBC
ance of CRM and customer loyalty in banking because a bank depends on the funds maintained by its customers to do business, take risks and to deliver. However, a global bank, like the HSBC, has millions of customers who indulge in billions of transactions, making technology
60 Pages(15000 words)Essay
How to implement Customer Relationship Management(CRM) to engage and improve customer loyalty in hotel industry in UK; Case study of Marriott, Hilton, Novotel as international chain hotels in UK
In the same way, there are models focusing on motivating the employees to build up production and in the long run improvement in the overall performance of the firm. On the other hand, recent theories indicate
13 Pages(3250 words)Essay
Loyalty card and customer loyalty: case study of Tesco in UK (Aldershot location)
Oliver (1997) defines loyalty in a customer as, “A deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching
2 Pages(500 words)Essay
Loyalty card and customer loyalty: case study of Tesco in UK (Aldershot location)
A year later Clubcard holders were spending 28% more at Tesco stores and 16% less at rival Sainsbury’s stores. As a consequence,
8 Pages(2000 words)Literature review
Loyalty card and customer loyalty: case study of Tesco in UK (Aldershot location)
Without these answers this dissertation would not have been possible. I would also like to thank the UK Tesco Aldershot The intention of this research was to investigate the effectiveness of customer loyalty schemes/programmes. The study was based
3 Pages(750 words)Essay
Customer Loyalty: Tourism Services Marketing Case
Customer satisfaction mainly occurs only when an individual customer need, demands and expectation are met and exceeded. When customers’ demands are satisfied; their loyalty to the business increases. Mainly increased customer satisfaction from a given company products and services increases the customers loyalty.
4 Pages(1000 words)Essay
Let us find you another Essay on topic Loyalty card and customer loyalty: case study of Tesco in UK (Aldershot location) for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us