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How a Company Develops Brand Loyalty Amongst Its Customers?

In: Business and Management

Submitted By alvara
Words 772
Pages 4
Literature review
Tesco ‘Clubcard scheme’
Tesco, the UK leading supermarket, introduced the use of Tesco Clubcard in 1995. “…the loyalty Clubcard was to offer “benefits to regular shoppers whilst helping the company discover more about its customer needs” (Turner and Wilson, 2006 cited in Tesco, 2004, p.3)
How can Tesco get more about its customer needs? The answer is on the Clubcard itself. It is not only the card for the customers to acuminate their reward points; instead, it is also a card which stores the data of customers purchasing information. Rowley (2005) pointed out that customers got the points from the loyalty or reward schemes. Customers then use the points they got as discounts or as partly or fully paid for their purchasing or service. For the company, the card is for collection of data, such as what kinds of products individual customer buy most and how often they buy them.
A research done by Turner and Wilson (2006) showed that the majority Tesco Clubcard holders strongly agreed or agreed that the Clubcard made them to shop at Tesco more frequently and repeatedly. The Clubcard does have positive impact on customer loyalty to Tesco.
Tesco Clubcard is not merely a gimmick that uses to draw customers attention towards the business; instead, every time the customers use it, the database records customers buying behaviour like purchasing habit, purchasing frequency, purchasing preference, etc., to Tesco. Tesco reviews these data and improves service to the customers. It is not surprising that Tesco is the giant in UK supermarket share.
Email marketing
Email marketing is another common marketing strategy in this ever changing society. Compared to others marketing means like direct mailing, advertising, email is a more economical and easier way to keep the customers updated with their brand. According to Merisavo and Raulas (2004), Email

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