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 Retain clients
I n 1993, Tesco hired Terry Hunt, who formed a team of analysts, sales staff, vendors and consultants. – Our task was clear - says Hunt: we had to learn who our clients were and we had to give them a reason to visit us again.The first goal was to increase the frequency of visits, the next one – to increase the value of clients' shopping baskets. The next step was to encourage consumers to use the entire assortment available in the store.
 Our analysis showed that, in spite of 18 sections in Tesco offering products from various categories, most clients would visit five or six sections. In Tesco, the so-called shop exploration was totally unsatisfactory.
In addition, the network had an ambition to increase its share in household budgets. – We analysed the structure of expenditures made by Tesco clients and were wondering which part of the expenditures Tesco had a chance to take over - says the person who contributed the most to the idea of Clubcard programme.
A real customer relation requires good knowledge about the customer. For this reason, the programme had to give an opportunity for creating an extended customer data base. Later on, the data base was to facilitate improved segmentation, service and presentation of customer-tailored offers.
In 1993, a scheme of a customer contract was created which, until this day today, has been the essence of the loyalty programme.
– We suggested a system based on the principle of mutuality: we will do something for you when you do something for us. The club membership rule was simple and transparent – 1 pound spent in Tesco would translate into one point on Tesco card.
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