Effectiveness Customer Loyalty Programs - Tesco Clubcard Scheme as a Corporate Marketing Strategy - Case Study Example

The paper “Effectiveness Customer Loyalty Programs - Tesco Clubcard Scheme as a Corporate Marketing Strategy” is a worthy variant of the case study on marketing. The supermarket shops and stores industry are on the rise since the start of the new millennium. Some of the business areas or sections of the supermarket industry include finance, technology, automobiles, and food. The supermarkets provide a broad range of products including food varieties and many other utility products. They are self-service stores that contain different sections grouped based on similar items such as stationary, clothes, kitchen appliances, dairy, vegetables, and many others. The development of supermarkets in the new millennium was due to industrialization and an increase in population. Supermarkets based in the United Kingdom have expanded both locally and internationally, therefore, increasing their profit margins and venturing into other products and services such as financial services.

These stores in the process of expansion and increasing their profit margins have applied several marketing techniques. These marketing techniques are aimed at gaining more customers and ensuring that the customers continue to shop in their stores through customer satisfaction. The marketing methods applied to influence the consumer's purchasing power that in turn leads to customer loyalty. Building a healthy relationship with the client is the primary purpose of developing customer loyalty. The relationship between the supermarket and the customer is built on persistent purchases over a period that is predetermined. A customer that is loyal is an important piece in the development of a business and allows the business to redirect its resources on other ventures (Gefen, 2002). Loyalty programs are important in the process of achieving customer loyalty. The use of loyalty cards is one of the ways a business can develop customer loyalty. But previous researchers have shown that loyalty cards are not a stable marketing program as it contradicts with the nature and attitude of the shoppers in some situations. Customers would prefer purchasing the products cheaply than being awarded points for shopping.