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Why has Tesco's loyal card scheme been successful where competitors' schemes have not - Dissertation Example

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Why has Tesco’s loyalty card scheme been more successful than its competitors? Owing to its success in recent years, Tesco has become one of the largest retailers of the world, fourth largest in the world and the largest one in the United Kingdom…
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Why has Tescos loyal card scheme been successful where competitors schemes have not
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"Why has Tesco's loyal card scheme been successful where competitors' schemes have not"

Download file to see previous pages It has over two thousand stores all over United Kingdom and has a wide range of products from everyday items of groceries to electric appliances to the mortgage market and even a clothing line. This indicates the level of diversity that this store has been into. The company does not target a specific niche; instead it has been very successful at capturing the mass market yet providing a customized approach to the masses. Thos customer centric and market oriented approach has helped Tesco become better than ever before, defeating all its competitors by making sure all their systems were intact. Its success involved its customer loyalty card which helped Tesco gauge customer interests, trends and ready-to-use market research that was in line with customer needs and wants. Surprisingly, when Tesco’s loyalty card scheme was thriving, other firms using the loyalty card concept were declining. There is no doubt about the fact that Tesco’s business model and effective strategies helped it raise its profits and give benefits to customers at the same time. Following is an analysis of Tesco’s success and the impact of the loyalty card scheme on it. ...
hat Tesco is a wonderful example of those companies who are benefiting greatly with the use of loyalty cards, by identifying consumer need and anticipating their demand by looking at past trends and regular patterns of buying. All customers who shop from there earn points for shopping and can later use those points for free shopping from any Tesco store. This helps gauge customers loyalty. On the other hand, Tesco itself makes sure that it shows its loyalty to customers too. Moreover, by classifying trends of consumers Tesco has been able to make huge profits even after giving benefits to customers. This mutual interest and benefit to both helps create a win-win situation maintaining loyalty of customers and raising company profits. In itself, this research, taking Tesco as a successful case of giving out loyalty cards to its customers will help analyze the circumstances in which loyalty cards actually work and whether it is worth giving benefits to customers in return for the information that they provide. Even though competitors like Sainsbury also copied this scheme of Tesco, it nearly failed because for first, Tesco had a first mover’s advantage in this industry, and it was known for being customer focused instead of product focused. As a result of this, customers were probably more inclined towards a company that positioned itself as a beneficiary for the customers, giving them benefits of the loyalty card along with excellent customer care which made them feel loyal towards the company. Along with the Loyalty card, the credit of this trust and credibility that Tesco had earned was also because of its efficient processes and fast paced technological improvements that helped it stay perfectly on track with the proficiently functioning supply chain. Thanks to the ...Download file to see next pagesRead More
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