Case Study
Journal of Direct, Data and Digital Marketing Practice (2007) 9, 191–197. doi:10.1057/palgrave.dddmp.4350078
Tesco Stores Limited: The IDM Business Performance Awards 2006, Silver Award Winner and Innovation Winner Campaign: Tesco Clubcard — Simpler and more rewarding
Kate Boothby1
Correspondence: Kate Boothby, Institute of Direct Marketing The IDM, 1 Park Road Teddington Middlesex TW11 0AR, UK. E-mail: kateboothby@msn.com
1is a senior consultant for the IDM. Her roles have included managing the Education Department, advising a college about its marketing database and acting as a key architect for the IDM ' s online digital marketing course.
Received 1 May 2007.
Abstract
Tesco Stores Limited's world leading Clubcard loyalty scheme has been successful for over ten years. Clubcard and the warehouse of data it generates are at the centre of Tesco's retention strategy. In 2003, Tesco observed warning signs that their market dominance was under threat. They responded by conducting research to establish the cause. The customer research revealed that the scheme needed to be updated and refreshed. This case explores how Tesco responded to customer concerns and re-activated their Clubcard scheme with impressive short- and long-term results.
Keywords:
loyalty scheme, customer knowledge, re-activation strategy, customer research, data warehouse, strategic advantage
