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Can a Customer Loyalty Database Change a Society?
Retrospeak writes "'Organisations that continue to put the brand at their epicentre and pay only lip service to the notion that the customer is king, will fail. It's just a matter of time.' So says business strategist Clive Humby. His marketing company, Dunnhumby handles the loyalty scheme database for Tesco, the third-largest retailer in world and the biggest retailer in Britain. This fact combined with a strong customer loyalty program means they may have one of the largest databases in the world. The Economist goes on to state that Britain itself is being changed by the secondary effects of Tesco's massive customer-driven database." From the article: "Some of these changes are small. The dust jacket of a book that was to be sold in-store was recently altered because a Tesco buyer did not like it. Others are more fundamental. Before the Clubcard came along, the largest panels that suppliers could use consisted of around 20,000 people. But suppliers can now pay for access to the database and many just rely on Tesco."
As long as customer databases are mistaken for customer service, it'll certainly not change anything for the better.
I live in Central New York where we have the pleasure of shopping at Wegmans Supermarkets. Wegmans uses a shopping card, is very receptive to even the smallest suggestions from customers, and goes out of their way to satisfy all customers. They track purchases carefully and have a giant database from which they mark trends and make changes. To put it simply, they rely less on the brand name and more on continuously improving and changing. For this reason, they have sent at least three different supermarket chains in the area scrambling or out of business. Wal-Mart hasn't even made much headway because Wegmans is so good.
Then there's GM. This dinosaur doesn't give people what they want--a well-built car that lasts a long time and sells for a reasonable price. Simply put, they don't get it. They believe that they have always been and that they have always done things the one true way.
Which company will grow?
Yeah, I'm as old as my UID would suggest.
I seem to remember a hackers conference where it was suggested that everyone should bring along their loyalty cards, and then do a swap.
If enough people did this, the databases would suddenly start to pick up on unexpected trends - customers whose profile suggested eating tofu and lettuce would suddenly be buying cigarettes and crisps etc.
It seemed like rather an interesting idea to me...
This seems like the perfect implementation of an affinity program. I find the closing parapgraphs regarding the OFTs interest troubling.
Tesco is a public company listening to customers, providing them with the goods and services they desire, and doing so for a fair price. Somehow to a group of people (and the OFT) that is improper. Since when did the "small shops" receive some type of right to exist and operate? If Tesco provided a better value for customers then that is where the customers will go.
I did the majority of my grocery shopping in Tesco while living in the UK. The stores were good, and I could even get home delivery. There were a couple small corner shops on the way home from the tube station as well. If I needed a loaf of bread, carton of OJ, or a pack of smokes they were a good quick stop. If stocking up my pantry/fridge for the week I'd go to Tesco. The small shops didn't have the products I wanted to buy.
a loyalty card with rfid and customers with remote control implants.
"Smedley, there's a customer in aisle 7 with a weakness for cream filled donuts - jerk him over to aisle 3 quick!"
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The dust jacket of a book that was to be sold in-store was recently altered because a Tesco buyer did not like it.
That's a bit silly, really. It leads to bland stuff that has been toned down to not offend anybody. Sure, if it offends a whole bunch of people, it might make sense to alter it, but one person?
I think you misread the article. The Tesco buyer is a Tesco employee who buys for Tesco. It wasn't a customer buying from Tesco who complained.
The village where I live is about 3 miles from the nearest Tesco and, one by one, the small family-run shops are closing. But they themselves are partly to blame - apart from Saturday mornings, they're closed when I'm at home. I would buy my meat fresh the butchers, fruit and veg from the greengrocer, and fresh bread from the bakers, but they don't give me that choice. If they stayed open late, just by a couple of hours, one day a week they'd get my business. At the moment the only people able to shop there are pensioners, the unemployed, housewives and shift workers.
Tesco use a Teradata data warehouse analytical/relationship marketing. They're a division of NCR.
What is the point of this? All it would do is screw up all the marketing research, resulting in them shoving more crap you don't care about down your throat whenever you go to buy groceries.
Personally, I hope to hell they learn everything they can about me so that my shopping experience will go smoother and faster.
Every time i go to Tesco, without fail, they ask me the same question "do you have a tesco clubcard?"! Do i have a fucking tesco club card? do i?? if i had a tesco club card would i be standing there holding out my money without it? would i actually forget to take it out? I know they are trained to do this, they have no choice and i know by the tone of their voice they are fucking fed up of saying it more than im fed up of hearing it, in fact i feel sorry for them - to have to say the same phrase 100's of times a day while listening to people saying it all around you must be hell. Theres hardly any other talking going on at the check-out, the only thing you hear is the total and do you have a mother fucking tesco club card. Sometimes I wonder, should i just get a tesco club card to make them shut up? even having to pull an extra thing out of my wallet every time would make up for it! If getting a card ment just being handed one and not having to fill anything in then i probably would, but it probably takes a form a mile long. If tesco want me to use a card then its going to have to be anonymous and not require me doing anything.
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