Page 153 - 100 Great Marketing Ideas (100 Great Ideas)

Where Clubcard goes a step further than most is that Tesco keep an
exact record of each holder’s purchases. This enables the company to
build up a virtual picture of what the individual buys, how often he
or she buys, and how much each person spends on an average shop.
Tesco use this information to tailor their offers to the individual:
each customer is given a separate set of offers, easy to do with
desktop publishing software.
At first, Tesco would identify products that the individual rarely
or never bought, and promote those: however, it quickly became
clear that people were not redeeming those offers (presumably
because these were products they actually did not want to buy), so
Tesco shifted the emphasis toward special offers on products the
individual does buy, or on close substitutes. Response rates rose
dramatically, again demonstrating that meeting customer needs is
the route to success in any business.

In practice

• Keep good records of your loyalty scheme customers. The

information will help you to sell more to them.

• Promote products that they actually want to buy, rather than

products you need to shift.

• Tailor your offers to the individual.

144 • 100 GREAT MARKETING IDEAS