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How Tesco transformed itself into a winning brand Compelling inside story of the world's most successful retail loyalty scheme when all others failed Three new chapters including an examination of the US retail market and the authors' work with both Tesco and leading retailer Kroger "This is the future of marketing. Read it and profit." Professor Don Schultz, Northwestern University, USA

Table of Contents

Introduction 1. Questions of loyalty In the beginning What is loyalty? The secrets of success Is customer loyalty genuine? 2. Making loyalty pay The economics of loyalty marketing Playing a zero sum game The foundations of a loyalty scheme Four loyalty 'currencies' Does a loyalty programme pay? 3. Clubcard on trial The trials Tesco and loyalty in history Project Omega The DNA of loyalty Rediscovering the customer 4. Because we can The national launch The need for speed 'Electronic Green Shield Stamps' catch on What made the launch a success? 5. Every little helped The Clubcard effect The loyalty contract The first quarterly mailing Waiting for the zero sum effect Maintaining momentum 6. Data, lovely data Drinking from the fire hose Measuring customer loyalty The problems with data warehouses Making a warehouse work What Tesco learnt about data 7. Four Christmases a year The Banana Man of Worcester To mail, or not to mail? Auditing the Clubcard statement Licensed to print money The 'Quarterly me' What Tesco learnt about mail 8. You are what you eat Five years of work Five problems for the data to solve The loyalty cube Discovering that you are what you eat Baskets become Buckets Buckets become Lifestyles 9. Lifestyles become habits Using all the data The Rolling Ball Shopping Habits Big Brother Segments at work 10. Launching a bank Clubcard Plus Outbanking the banks The bank of Tesco Sainsbury's bites back A new way of banking The Clubcard effect in a new business 11. Babies, beauty and wine Strengthening the bond The inner circle Baby Club Clubcard pizza What Tesco learnt about 'sub-clubs' 12. A bigger deal Partners for Clubcard Solo, shared and outsourced The early Clubcard partnerships Clubcard Deals Broadening the offer 13. From mouse to house 'It's our job to make home shopping work' Tesco on the internet Real shoppers, real stores, real advantage The bubble that didn't burst How it's different online Becoming a non-food e-tailer How Clubcard helped Tesco.com 14. Back to basics Ask the audience Simplifying Clubcard Simple marketing 15. Clubcard overseas Is customer loyalty the same everywhere? Crossing the Atlantic Slaughtering sacred cows dunnhumby USA A journey with Kroger 16. 'Tesco's most potent weapon' A critical function Smart weapons in the price war The Shop Making promotions work harder Three little words

About the Author

Clive Humby is chairman and founder of leading marketing analysts dunnhumby. He is the chief information architect behind Tesco Customer Management and its segmentation programme. Clive is Visiting Professor, Integrated Marketing, at Northwestern university, Chicago and Industrial Fellow at Kingston University. Terry Hunt is chairman of EHS Brann, one of the largest direct marketing agencies in the world. His clients include Tesco, the AA, British Gas, MINI, The Economist, Cadbury's, National Savings, and Barclays. As leading specialists in data-driven marketing, CRM, segmentation and customer loyalty, Clive and Terry together have been major influences behind the development, launch and creative management of Tesco Clubcard. Tim Phillips is a renowned business journalist and broadcaster. He is the author of Knockoff, also published by Kogan Page.

Reviews

"If you're in marketing and you don't know the Tesco story, you're using antiquated techniques and approaches. This is the future of marketing. Read it and profit." Professor Don Schultz, Northwestern University, USA "A compelling behind-the-scenes account of the successes, the failures and the lessons learnt." World Advertising Research Center "Details the advent of a loyalty programme that set the standard for rivals." The Independent "Tesco... is the rare success in a landscape littered with failed customer-relationship programs." Harvard Business Review "A story of leadership in marketing and of making the idea of "customer orientation work - for customers and for staff." Allaboutbranding.com "Will be read avidly by all those trying to emulate Tesco's success, and well it should." Loyalty "Recounts how a mass retailer transformed itself into a membership brand and looks at the successes, failures and lessons learned." In-Store "A fascinating insight into database marketing. Tesco has developed an impressive tool for communicating with its customers, something to which every major retailer must aspire." Media Week "The inside story of how Tesco managed to make their Clubcard scheme work." Marketing Business "Thought-provoking and relatively balanced chapters for those interested in card strategy." Chain Store Age "A host of exciting insights into one of the most important developments in marketing in two decades." Simon Waugh, Group Marketing Director, Centrica "Filled with insightful multidisciplinary examples and detailed data analysis ... an absolute must read for anyone who has to connect with today's consumer." Bob Schmetterer, Chairman and CEO, Euro RSCG Worldwide "The story of Tesco's gutsy, groundbreaking experiment with IT and a textbook example of how the Digital Age keeps making it possible for smart, daring businesspeople to rewrite the rules of commerce." Get Abstract "An excellent account of leadership in marketing." Professional Manager "Fascinating account of how a major retailer has transformed itself into a membership brand." Long Range Planning "Ten million shoppers can't be wrong. Here you can find out why." The Bookseller "Tesco Clubcard is the world's most successful retail loyalty scheme...Tesco emerges as very different to the uncaring monolith of media lore." The Grocer "Details the pioneering efforts to make its customer loyalty programme effective...Scoring Points shows it has never been more fundamental to Tesco's success." Retail and Leisure International "This isn't a story simply about the rise of one company over others. It is about Tesco's culture change which enabled this to happen, and how it defied many of the principles of retailing in order to achieve it." Card World "What is the Clubcard's magic ingredient then? Simplicity...There's a valuable lesson there for businesses in any sector." Business XL "One of the very few marketing 'must read' books that I have read." Database Marketing "Reveals not only the hows and whys of Tesco's success...but also how US-enterprise Kroger may be able to grapple Wal-Mart's grip over American consumers by copying Tesco's technique." EasyJet Inflight magazine "A handbook on how to create and manage a process that proves the point made by Frederick Reichheld, ... that 'profit is a consequence of value creation.' Marketing: Ireland's Marketing and Media Monthly "A must read for all observers in the retail industry." Worldwide Retail Automation "Scoring Points is one of the seminal marketing stories of the last decade." Network magazine "When the first edition of this book appeared in 2003, many 'experts' - whilst grudgingly admitting that Clubcard had been a success - took the view that its time had run. This updated account shows how wrong they were - and why." Argent "This is the future of marketing. Read it and profit." Professor Don Schultz, Northwestern University, USA