Scoring Points

About the Authors

Clive Humby is the chairman and founder of leading marketing analysts dunnhumby and a visiting professor at Northwestern University, Chicago. His expertise in customer relationship management and data analysis has been pivotal in transforming Tesco's approach to loyalty programs.

Terry Hunt is the chairman of EHS Brann, one of the largest direct marketing agencies in the world. With extensive experience in direct marketing, Hunt has contributed significantly to the strategies that have helped Tesco connect with its customers on a deeper level.

Tim Phillips is a well-known business journalist who appears on BBC TV and Radio and Sky News. His insights into business trends and consumer behavior have enriched the narrative of how Tesco has leveraged data to achieve remarkable success.

Main Idea

The book "Scoring Points: How Tesco Is Winning Customer Loyalty" by Clive Humby, Terry Hunt, and Tim Phillips explores the phenomenal success of Tesco’s Clubcard, the world’s most successful retail loyalty program. Launched in 1995, the Clubcard has revolutionized Tesco’s relationship with its customers, transforming it from just another grocery chain into the United Kingdom’s most successful retailer and the world’s most successful Internet supermarket. This book delves into the strategies and insights that have allowed Tesco to not only retain customers but also to significantly increase their spending.

Table of Contents

1. Questions of Loyalty
2. Creating Value
3. Making Loyalty Pay
4. Clubcard on Trial
5. The Clubcard Effect
6. Data, Lovely Data
7. Four Christmases a Year
8. The Quarterly Me
9. Banana Man
10. Lifestyles Become Habits
11. Launching a Bank
12. Babies, Beauty and Wine
13. From Mouse to House
14. A Bigger Deal

Analyzing and Explaining Each Idea

1. Questions of Loyalty

Loyalty in retail is not about exclusivity but about fostering a preference among customers. Tesco understood that they couldn't expect customers to shop exclusively at their stores, but they could cultivate goodwill and a slight edge in buying behavior. This marginal preference, when accumulated across millions of customers, leads to substantial financial gains.

The book identifies four types of loyalty that retailers rely on:

• Purge Loyalty: Slashing prices to become the preferred shopping destination.
• Pure Loyalty: Building a two-way dialogue between the retailer and the customer.
• Pull Loyalty: Attracting customers with special offers, such as buy-one-get-one-free deals.
• Push Loyalty: Encouraging customers to use new shopping methods, such as a combined credit card and loyalty card.

2. Creating Value

Loyalty programs generate positive results in several ways: