To build a continuous relationship with customers and achieve their mission, Tesco has decided to implement customer relationship management systems which includes Tesco Loyalty Club Card, online shopping through Tesco.com and Tesco Bank. This will not only increase customer loyalty by giving them multiple service options as well as prompter and better services, but also attract more customers by improving their brand image in this industry (Saarijarvi and Karjaluooto and Kuusela, 2013).
Tesco’s Clubcard gives customers an opportunity to collect points on food, fuel, fashion and more, both in store and online. Customers receive 1 point for every £1 spent and for every £2 spent on fuel. Collected points can then be turned into vouchers to help customers save money, for example, 150 points can be changed to £1.50 voucher. Customers can collect points through 4 different ways: Contactless card by tapping at the checkout, Key fob that works just like a Clubcard, a Clubcard application that allows customers to also check their point balance and spend vouchers straight from their phone, and Tesco Pay+ which enables both payments and point collection in a single scan. Tesco Clubcard immensely deepens the mutual relationship between the company and the customers, achieving the objective of assessing customer needs and values to raise the growth of revenue through customer satisfaction. In return, saving on cost of promotions by promoting to loyal customers as opposed to cherry pickers. Moreover, the usage of Clubcard enables Tesco to maintain a database of their customers such as lifestyle data, demographic data, total food item expenditure or customer response to promotions. By analyzing the data, Tesco can make promising customer decision making to in a straight line of promotions, management category, ranging of a local store as well as the location of the store, putting Tesco to the apex of other organisations in terms of customer relationship (Academized, 2016). Moreover, Tesco used data collected by Clubcard to plan new product launches and services for customers (Molly, 2019).
In addition, Tesco has launched an online platform for customers to shop their groceries. This service provides convenient delivery and collection slots, as well as money saving plans to help customers make shopping online easy and cheaper. Customers are only required to register online, book a delivery slot, choose their groceries, simply check out and wait for the delivery within 1 to 2 hours. Online shopping platform, Tesco.com, helps the company gather feedbacks of different customers to improve existing gifts and offer latest services for the prospect (Academized, 2016). Through online groceries, Tesco can offer improved quality, priced products and services. Additionally, the care for customers has been fulfilled, making them feel valued, creating customer loyalty (Academized, 2016). Moreover, with the database collected through registration, Tesco studies more specific factors such as the time at which the sale of a particular item was at maximum, most desired offers and promotions or the queries that are generated for any specific product or brand. Through in-depth researches, Tesco can meet the up most expectations and demands of customer needs.
Finally, Tesco has launched a financial service known as Tesco Bank. Tesco Bank includes current accounts, credit cards, loans, mortgages and insurance for cars, house and pets. Moreover, customers with Clubcard membership can benefit from Tesco bank in various ways such as using vouchers to buy motor insurance or gaining more points by using current accounts from Tesco Bank. This is beneficial for Tesco as the company uses information from loyalty card profiles that are produced of customers to acquire financial service for less than half of what it costs a bank. With the aid of these customer relationship management schemes adopted by Tesco, it shows how the company maintains recognition of individual customers and improve on customer satisfaction.
