Tesco Clubcard
Tesco Clubcard is the loyalty card of Tesco, the UK's largest retailer. Clubcard is operated by Dunnhumby Limited, a private company now majority owned by Tesco.
History
Tesco began investigating the benefit of a loyalty card in 1993 by collecting customer data and then sending them targeted offers.[1] In 1994 the man responsible for Tesco's trials, Grant Harrison, attended a conference where Clive Humby from Dunnhumby was speaking. Dunnhumby had been founded in 1989 by Clive Humby, Edwina Dunn and Terry Hunt.[2] The company, offering marketing services, had already signed clients such as Cable & Wireless and BMW.[1]
Humby and Dunnhumby's Simon Hay contacted Harrison who agreed to work with them.[1] Successful trials throughout 1994 lead to the Tesco board asking Harrison, Humby and Hay to present their findings. The first response from the board came from Tesco then-Chairman Lord MacLaurin who said "What scares me about this is that you know more about my customers after three months than I know after 30 years."[3]
Clubcard was launched in 1995. David Sainsbury, then Chairman of J Sainsbury plc, rejected the idea of introducing a similar scheme. However the effect that Clubcard had on Sainsbury's sales lead to the reversal of that decision, with the Sainsbury's Reward Card launched in June 1996.[4]
After two slight amendments to the design of cards in the 1990s. the scheme had a major relaunch in 2005 with all members being sent personalised cards and key fobs which could be scanned at the checkout instead of swiped. The scheme was again relaunched in 2008 with all seven million members once again being sent new design cards and key fobs.
The Tesco Clubcard scheme was introduced into the Republic of Ireland almost immediately after Tesco's acquisition of Power Supermarkets Limited (now Tesco Ireland), and operates in similar fashion. It is an extension of the UK scheme, not a separate scheme, and Irish Clubcards can be used in UK stores. In 2007, Tesco Clubcard was first introduced in all Tesco Extra stores in Malaysia and later in all Tesco stores. In Malaysia, Every two Ringgit Malaysia spent is 1 Clubcard point. After two weeks from the launch of Clubcard in all Tesco stores in Malaysia, there were over 800,000 applications.
Benefits
When shopping at Tesco or using Tesco services (such as services from Tesco Finance), Clubcard holders receive one point for every £1 (€1 in Ireland) they spend, holders can also get double points on special offers and receive one point for every carrier bag they reuse (UK only) as part of Tesco's green initiative. These points are stored and built up and four times a year the holder receives a statement and vouchers to the value of points they have saved (1p/1c per point). Vouchers can be spent instore on shopping or used on Clubcard Deals where they are worth four times the value. These can be used to obtain discounted day trips and magazines.
Clubcard holders are also entitled to free access to the clubcard clubs which include: wine club, baby and toddler club, healthy living club and food club. There is also a facility to save vouchers to be sent near Christmas, similar to a Christmas savings scheme.
Services
Sevices that take part in the Clubcard scheme:
- Tesco stores
- Tesco.com
- TescoDiets.com
- Tesco Petrol stations
- Tesco Direct
- Tesco Personal Finance
- Tesco Telecoms
- The Nutri Centre @ Tesco
- AVIS
- E.ON
- Marriott Hotels
- National Tyres
- Nationwide Autocentres
Privacy concerns
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Some people have concerns over what information Tesco and Dunnhumby hold and what they do with it. Every time a Clubcard is used, a copy of the store shopped in, products purchased and price paid are stored against the Clubcard account. As well as this, during signup potential cardholders are asked to provide personal details such as name, address, children etc. Tesco have stated that this is to help them pick vouchers that are relevant to the holder and also monitor trends to help product availability.
See also
- Green Shield Stamps, a previous customer loyalty scheme employed by Tesco
References
- ^ a b c Rigby, Elizabeth (2006-11-11). "Eyes in the till". FT Magazine. Financial Times. pp. 16–22.
{{cite news}}:|access-date=requires|url=(help) - ^ "Who are we?". www.dunnhumby.com. Dunnhumby Limited. 2006. Retrieved 2007-03-30.
- ^ Mesure, Susie (2003-10-10). "Loyalty card costs Tesco £1bn of profits - but is worth every penny". The Independent.
{{cite news}}:|access-date=requires|url=(help) - ^ Randall, Jeff (1996-06-23). "Sainsbury plays its loyalty card". Sunday Times. Times Newspapers.
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