![]() ![]() The firm’s data-driven management is clearly delivering results. Lowenstein, “Tesco: A Retail Customer Divisibility Champion,” CustomerThink, October 20, 2002. Offer redemption rates are the best in the industry, with some coupons scoring an astronomical 90 percent usage! M. Harris, “Competing with Multichannel Marketing Analytics,” Advertising Age, April 2, 2007. To get a sense of Tesco’s laser-focused targeting possibilities, consider that the firm sends out close to ten million different, targeted offers each quarter. Consumer-level targeting allows the firm to tailor its marketing messages to specific subgroups, promoting the right offer through the right channel at the right time and the right price. ![]() Tesco then mines all this data to understand how consumers respond to factors such as product mix, pricing, marketing campaigns, store layout, and Web design. Done your research online, then traveled to a store to make a purchase? Tesco sees this, too. Visited a product comparison page? Tesco watches which product you’ve chosen to go with and which you’ve passed over. Remove products from your virtual shopping cart? Tesco can track this. As the world’s largest Internet grocer, the firm gains additional data from Web site visits, too. But Tesco isn’t just a physical retailer. ![]() Tesco’s data collection relies heavily on its ClubCard loyalty program, an effort pioneered back in 1995. Capell, “Tesco: ‘Wal-Mart’s Worst Nightmare,’” BusinessWeek, December 29, 2008. UK grocery giant Tesco, the planet’s third-largest retailer, is envied worldwide for what analysts say is the firm’s unrivaled ability to collect vast amounts of retail data and translate this into sales. Tesco: Tracked Transactions, Increased Insights, and Surging Sales A customer may think “I could get the same thing at Target, but at Best Buy, it’ll increase my existing points balance and soon I’ll get a cash back coupon.” The latter has the additional benefit of acting as a switching cost. Some cards provide an instant discount (e.g., the CVS Pharmacy ExtraCare card), while others allow you to build up points over time (Best Buy’s Reward Zone). The explosion in retailer cards is directly related to each firm’s desire to learn more about you and to turn you into a more loyal and satisfied customer. Use one of these cards and you’re in effect giving up information about yourself in exchange for some kind of financial incentive. In addition to enhancing data collection, loyalty cards can represent a significant switching cost. Grocers and retailers can tie you to cash transactions if they can convince you to use a loyalty card Systems that provide rewards and usage incentives, typically in exchange for a method that provides a more detailed tracking and recording of customer activity. For example, if you pay a retailer in cash, you’re likely to remain a mystery to your merchant because your name isn’t attached to your money. But while TPS can generate a lot of bits, it’s sometimes tough to match this data with a specific customer. The cash register is the data generation workhorse of most physical retailers, and the primary source that feeds data to the TPS. (some kind of business exchange) occurring, representing an event that’s likely worth tracking. Every time a consumer uses a point-of-sale system, an ATM, or a service desk, there’s a transaction Some kind of business exchange. represent a fountain of potentially insightful data. zip file containing this book to use offline, simply click here.įor most organizations that sell directly to their customers, transaction processing systems (TPS) Systems that record a transaction (some form of business-related exchange), such as a cash register sale, ATM withdrawal, or product return. You can browse or download additional books there. More information is available on this project's attribution page.įor more information on the source of this book, or why it is available for free, please see the project's home page. Additionally, per the publisher's request, their name has been removed in some passages. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed. Normally, the author and publisher would be credited here. This content was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz in an effort to preserve the availability of this book. See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms. This book is licensed under a Creative Commons by-nc-sa 3.0 license. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |