Synopses & Reviews
Swiping a grocery store's loyal-customer card has become second nature to shoppers these days. Scoring Points, one of the seminal marketing books of the last decade, tells the story of how British supermarket chain Tesco conceived, launched and developed its hugely successful Clubcard program -- and transformed itself into a winning brand. Authors Clive Humby and Terry Hunt, two key members of the project, and Tim Phillips, a leading business writer and broadcaster, bring a compelling, behind-the-scenes account of Clubcard -- the successes, failures and lessons learned. They show how Tesco made customer loyalty marketing work, even when almost every other loyalty program failed, thanks to vision, a strong team ethic and a company-wide commitment to customer satisfaction. It includes three new chapters, including an examination of the US retail market and the authors' work with both Tesco and Kroger.
Review
"Thought provoking." -- Chain Store Age
Review
"This is the future of marketing. Read it and profit." -- Prof. Don Shultz, Northwestern University
Synopsis
Scoring Points is the compelling and dramatic inside story, told from a project point of view, of how the Tesco Clubcard was conceived, launched and developed. It explains in detail how Tesco collected, analysed and used customer data to become a retail giant, making customer loyalty marketing work when almost every other programme failed. By pairing its loyalty scheme with sophisticated information technology, Tesco set a new standard for knowing your customer.
Scoring Points is one of the seminal marketing books of the last decade. A fascinating tale of what can be achieved through vision, a strong team ethic and a company-wide commitment to customer satisfaction, it is an inspirational read for anyone in business, from junior marketers or salespersons working in an FMCG environment, to any practitioner looking to better analyse their customer base.
Synopsis
The retail and food industries are a very competitive sector. To succeed, a brand has to set itself above the rest and understand the need for brand loyalty. One way of gaining loyalty is through a customer loyalty program. "Scoring Points" describes how to make such schemes work. It tells the story of how British supermarket Tesco developed its Clubcard program and examines the successes, obstacles, and lessons that resulted. The authors show how a daring leap of marketing imagination propelled Tesco to become number one in the UK grocery business.
About the Author
Clive Humby is the chief information architect behind Tesco Customer Management and its segmentation program and co-founder of leading marketing analysts dunnhumby. He is Visiting Professor, Integrated Marketing, at Northwestern University, Chicago and Industrial Fellow at Kingston University and co-author of
Scoring Points, also published by Kogan Page.
Terry Hunt is chairman of EHS Brann, one of the largest direct marketing agencies in the world. His clients include Tesco, British Gas, The Economist, Cadbury's, National Savings, and Barclays.
Tim Phillips has been a journalist for 20 years. He has written for publications such as The Wall Street Journal Europe and The Sunday Times. He writes the popular blog "Talk Normal" in an effort to combat the poor communication and corporate jargon in the workplace. He is the author of Knockoff and Fit to Bust and co-author of Scoring Points, all published by Kogan Page.
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