27870053 Tesco the CRM Champions

8/8/2019 27870053 Tesco the CRM Champions

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TescoTesco

The CRM ChampionThe CRM Champion


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IntroductionIntroduction -- TescoTesco

Various customer services schemes such as First Class ServiceVarious customer services schemes such as First Class Service

Initiative, loyalty Card Scheme etc.Initiative, loyalty Card Scheme etc.

Tesco has moved from customer service to customer delight.Tesco has moved from customer service to customer delight.

Presentation discusses the customer service initiatives atPresentation discusses the customer service initiatives atTesco.Tesco.

Tesco followed the model of pile it high and sell it cheap.Tesco followed the model of pile it high and sell it cheap.


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A Master at CRMA Master at CRM

Tesco massTesco mass--customized the magazines by sending it to theircustomized the magazines by sending it to theircustomers.customers.

Every magazine had a unique combination of articles,Every magazine had a unique combination of articles,advertisements related to its offerings and third partyadvertisements related to its offerings and third partyadvertisements.advertisements.

Promotional coupons were distributed though this magazines.Promotional coupons were distributed though this magazines.

Launched Loyalty cards which fall under the domain ofLaunched Loyalty cards which fall under the domain ofcustomer retention strategies.customer retention strategies.

Collection of data through this Cards, which formed the basisCollection of data through this Cards, which formed the basisfor formulating strategies that offered customers personalizedfor formulating strategies that offered customers personalizedservices in a cost effective manner.services in a cost effective manner.


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Answer for RPMAnswer for RPM

Retail price Maintenance system had restricted Retailers fromRetail price Maintenance system had restricted Retailers frompricing goods below a price agreed upon the MRP.pricing goods below a price agreed upon the MRP.

Tesco were not able to compete on price with small retailingTesco were not able to compete on price with small retailingoutfits.outfits.

Tesco came up with an idea of Trading Stamp, this stampsTesco came up with an idea of Trading Stamp, this stampswere given to customers in return for making purchases at itswere given to customers in return for making purchases at itsstores.stores.

Customers can redeem this stamps against cash or gift.Customers can redeem this stamps against cash or gift.

This strategy of Tesco proved very successful and this lead toThis strategy of Tesco proved very successful and this lead toworked towards getting the RPM abolished.worked towards getting the RPM abolished.


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Adoption of StrategiesAdoption of Strategies

In 1979, company successfully launched a price cuttingIn 1979, company successfully launched a price cuttingcampaign named campaign named Checkout at TescoCheckout at Tesco..

In 1985, Tesco Launched the In 1985, Tesco Launched the Healthy EatingHealthy Eating initiative initiativewhich aimed at conveying the nutritional value of thewhich aimed at conveying the nutritional value of thecompany to the customers.company to the customers.

In 1990, Tesco came with three new formats stores,In 1990, Tesco came with three new formats stores,Tesco MetroTesco Metro: To serve local community of region,: To serve local community of region,

Tesco ExpressTesco Express: Combination of petrol pump &: Combination of petrol pump &

convenience store,convenience store,Tesco Extra StoreTesco Extra Store: Hypermarket focused equally on food: Hypermarket focused equally on foodand non food merchandise.and non food merchandise.


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Continue.Continue.

In 1995, Tesco launched the Clubcard LoyaltyIn 1995, Tesco launched the Clubcard Loyaltyscheme.scheme.

Tesco adopted the policy of offering its service toTesco adopted the policy of offering its service tocustomers in innovative ways.customers in innovative ways.

Instance: Tescooters (scooters) were purchased byInstance: Tescooters (scooters) were purchased bythe thailand customer and it was delivered to theirthe thailand customer and it was delivered to theirhome.home.

WithWith www.tesco.comwww.tesco.com company emphasized on Ecompany emphasized on E--

commerce.commerce.In 2000, company tied up with a Safeway Inc toIn 2000, company tied up with a Safeway Inc tolaunch an online grocery shopping serviceslaunch an online grocery shopping services


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CRMCRM The Tesco wayThe Tesco way

In 1993In 1993--94, Tesco launched the 94, Tesco launched the First Class ServiceFirst Class Service..

In 1994, company launched the In 1994, company launched the One on FrontOne on Front scheme schemeto reduce the time of customers at checkto reduce the time of customers at check--out counters.out counters.

Tesco store personnel ensure that if there was moreTesco store personnel ensure that if there was morethan one person at any counter will lead to open for thethan one person at any counter will lead to open for theperson second in line.person second in line.

In 1994, Tesco began tied up with Dunnhumby.In 1994, Tesco began tied up with Dunnhumby.

Tesco began testing of Clubcard Loyalty Scheme.Tesco began testing of Clubcard Loyalty Scheme.

In this way Company started collecting the Database ofIn this way Company started collecting the Database ofcustomers like name, add, dob, ecustomers like name, add, dob, e--mail etc.mail etc.


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Continue.Continue.

With the help of data mining they analyzed the data andWith the help of data mining they analyzed the data andclassified the customers into four broad categories: Premium,classified the customers into four broad categories: Premium,Standard, Potential and Uncommitted.Standard, Potential and Uncommitted.

Further analysis on the type of product purchased.Further analysis on the type of product purchased.

Customers were categorized along dimensions such as, value,Customers were categorized along dimensions such as, value,convenience, frozen, healthy eating, fresh and kids.convenience, frozen, healthy eating, fresh and kids.

Tesco began giving many special privileges, such as ValetTesco began giving many special privileges, such as Valetparking and personal attention from store managers toparking and personal attention from store managers to

customers.customers.Special cards were created for students and mothers.Special cards were created for students and mothers.

Special attention given to expectant mothers in the form ofSpecial attention given to expectant mothers in the form ofpersonal shopping assistants.personal shopping assistants.


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Tesco used the info.Tesco used the info.

Tesco used the information generated by the Clubcards inTesco used the information generated by the Clubcards infollowing ways:following ways:

PricingPricing

MerchandisingMerchandisingPromotionsPromotions

Customer ServiceCustomer Service

Media EffectivenessMedia Effectiveness

Customer AcquisitionCustomer Acquisition

Market ResearchMarket Research

Customer Communication.Customer Communication.


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Reaping the BenefitsReaping the Benefits

Tesco adopted Tesco adopted the rifle shot approachthe rifle shot approach instead of instead of the carpetthe carpetbombing approachbombing approach

Due to the captive customer base and the crossDue to the captive customer base and the cross--sellingsellingopportunity, the cost of acquiring customers for its financialopportunity, the cost of acquiring customers for its financial

service was 50% less.service was 50% less.

Due to the data Tesco was able to offer better services to theDue to the data Tesco was able to offer better services to thecustomers.customers.

Tesco was ensured that the footfalls in its stores did notTesco was ensured that the footfalls in its stores did not

decline on account of competitive pressures.decline on account of competitive pressures.


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Tesco developed a totally new product rage, TescoTesco developed a totally new product rage, Tesco

Finest for the high income bracket who are attracted byFinest for the high income bracket who are attracted by

rivals.rivals.

Tesco, removed the impulsive products like candies fromTesco, removed the impulsive products like candies fromoffoff--shelf still company earned profit.shelf still company earned profit.


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Customer Service to CustomerCustomer Service to Customer

DelightDelightTesco adopted the fourTesco adopted the four--prongedpronged

approach: launch better & bigger stores,approach: launch better & bigger stores,

offer competitive prices, increase theoffer competitive prices, increase the

products offered and focus on remoteproducts offered and focus on remote

shopping services.shopping services.

Tesco, employed a dedicated team ofTesco, employed a dedicated team of

employees, called employees, called Price CheckersPrice Checkers..


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Every Customer Offered HelpEvery Customer Offered Help

(E

COH)(E

COH)All employee were given clear instructionsAll employee were given clear instructions

about the way in which they wereabout the way in which they were

expected to deal with customers like:expected to deal with customers like:

Greet customers,Greet customers,

Offerings them help andOfferings them help and

Wishing them a good day.Wishing them a good day.


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In 2001In 2001 02 Tesco, introduced Customer Chamapions in its02 Tesco, introduced Customer Chamapions in its

stores.stores.

It also collaborate with suppliers to develop a It also collaborate with suppliers to develop a LeanLean

ThinkingThinking ..Company also followed a continuous replenishment of policyCompany also followed a continuous replenishment of policy

to ensure at leat 99% of stock availability.to ensure at leat 99% of stock availability.

In 2003, company launched a fixed line telephone and mobileIn 2003, company launched a fixed line telephone and mobile

phone service in the UK.phone service in the UK.

Tesco launched a new initiative targeted at its womenTesco launched a new initiative targeted at its women

customers name customers name Me TimeMe Time


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Me TimeMe Time was offered ladies free sessions at leading health was offered ladies free sessions at leading healthspas, luxury gyms and beauty saloons and discounts onspas, luxury gyms and beauty saloons and discounts on

designers clothes, perfumes and cosmetics.designers clothes, perfumes and cosmetics.

In 2003, company cut a total $60 million off on a vast range ofIn 2003, company cut a total $60 million off on a vast range ofproducts to continue offering competitive prices.products to continue offering competitive prices.


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Thank youThank you

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27870053 Tesco the CRM Champions