In Part 1, we introduced Tesco Clubcard. Use one of these regularly you are rewarded with points and vouchers. It also exposes your shopping habits in a way that you never imagined. Tesco builds a picture of you and your family across ten key categories and is even reported to sell the findings.
Launched in 1995, Clubcard is reportedly more important in Tesco’s strategy than traditional advertising. It’s believed to have attracted some 12mil customers.
Whereas apparently coupon redemption runs at no more than two per cent, Tesco’s Clubcard vouchers rise to between 15 and 20 per cent. Why? Because they are so well targeted. They really know your shopping habits.
So, are Clubcard vouchers and discounts worth it?
It certainly is for Tesco; it’s a good return for them. It’s worth just one per cent to the shopper (up to four per cent if swapped for rewards) but much more to Tesco in terms of its customer relationship and deep knowledge of you and your shopping habits.
Which means, to get your bottle of decent wine at £9.99 on Clubcard points, you’ll need to spend £1,000.
How does this compare with other retailers in Rhuthun/Ruthin?
The Co-op offers a Dividend Card, with the same one per cent return. The main difference is that it can be taken in the form of cash rather than goods.
Boots has an Advantage Card. At four per cent, its return is better. But that’s less of an advantage if the products are four per cent more expensive than Tesco’s.
Both Co-op’s and Boots’ me-too cards are likely to provide their respective owners with information about your purchases and habits.
Somerfield stopped its Saver Card in May 2006. The Saver Card was available in Rhuthun/Ruthin upon the conversion of KwikSave to Somerfield in January 2006. There were no points but the holder was offered discounts on selected products. It was impossible to measure the customer return on this loyalty scheme, as the benefit depended on whether any of the special offers take your fancy. Somerfield states that in withdrawing its scheme, discounts are now available to all shoppers.
Sources
http://reveries.com/?p=68
http://reveries.com/?p=535
http://money.guardian.co.uk/consumerissues/story/0,,1460851,00.html
Launched in 1995, Clubcard is reportedly more important in Tesco’s strategy than traditional advertising. It’s believed to have attracted some 12mil customers.
Whereas apparently coupon redemption runs at no more than two per cent, Tesco’s Clubcard vouchers rise to between 15 and 20 per cent. Why? Because they are so well targeted. They really know your shopping habits.
So, are Clubcard vouchers and discounts worth it?
It certainly is for Tesco; it’s a good return for them. It’s worth just one per cent to the shopper (up to four per cent if swapped for rewards) but much more to Tesco in terms of its customer relationship and deep knowledge of you and your shopping habits.
Which means, to get your bottle of decent wine at £9.99 on Clubcard points, you’ll need to spend £1,000.
How does this compare with other retailers in Rhuthun/Ruthin?
The Co-op offers a Dividend Card, with the same one per cent return. The main difference is that it can be taken in the form of cash rather than goods.
Boots has an Advantage Card. At four per cent, its return is better. But that’s less of an advantage if the products are four per cent more expensive than Tesco’s.
Both Co-op’s and Boots’ me-too cards are likely to provide their respective owners with information about your purchases and habits.
Somerfield stopped its Saver Card in May 2006. The Saver Card was available in Rhuthun/Ruthin upon the conversion of KwikSave to Somerfield in January 2006. There were no points but the holder was offered discounts on selected products. It was impossible to measure the customer return on this loyalty scheme, as the benefit depended on whether any of the special offers take your fancy. Somerfield states that in withdrawing its scheme, discounts are now available to all shoppers.
Sources
http://reveries.com/?p=68
http://reveries.com/?p=535
http://money.guardian.co.uk/consumerissues/story/0,,1460851,00.html