Tescos Club Card Scheme

584 Words3 Pages
Clubcard is Tesco’s membership scheme which allows customers to save money on shopping by providing them price-off vouchers. Customers get a point on every pound they spend shopping at any stores of Tesco group of companies as well as at stores of their partner companies. Once a customer accumulates 150 points, these are then converted into Clubcard vouchers which enable the customer to save money on shopping. One can argue that other retailers also have similar loyalty programs. However it is interesting to note that while most loyalty schemes and relationship marketing strategies similar to Clubcard have often failed for other retailers, Tesco’s Clubcard has worked well and managed to succeed. ASDA ran a similar pilot scheme in its stores but it did not work. Safeway tried the loyalty program by way of its ABC card but gave it up in about four years. Even the more popular Nectar card from Sainsbury’s has not been able to match the success of Clubcard. Probably a reason behind Tesco’s success with Clubcard can be attributed to the fact that Tesco has also established relationships and partnerships with popular companies like Powergen that supplies electricity and gas, Beefeater restaurants, Avis car-hire, Marriott Hotels, National Tyres, Johnsons dry cleaners, mfi etc. Therefore customers can earn points using Clubcard not only at Tesco, but at stores of any of these companies. Further the points can also be earned by purchasing fuel at Tesco petrol stations and by using their online shopping to buy music, books, flowers and electrical goods. Even the points can be earned by paying with Tesco Credit Card or by using Tesco Mobile, Tesco Home Phone and selected Tesco Financial Products. This means that customers can easily and frequently accumulate the minimum 150 points and get price-off vouchers. Other loyalty cards have also failed in the past because the
Open Document