TESCO - The Customer Relationship Management Champion

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Case Details:

Case Code : MKTG070
Case Length : 16 Pages
Period : 1998-2003
Pub Date : 2003
Teaching Note : Not Available
Organization : Tesco
Industry : Retailing
Countries : UK

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Our mission is to earn and grow the lifetime loyalty of our customers."

- Sir Terry Leahy, Chief Executive Officer (Tesco), quoted in Tesco's 1998 Annual Report.

"They (Tesco) know more than any firm I have ever dealt with how their customers actually think, what will impress and upset them, and how they feel about grocery shopping."¹

- Jim Barnes, Executive Vice President of Bristol Group, a Canada-based Marketing Communications and Information firm, and a CRM expert.

"The whole philosophy is in balancing the business in favor of the customer. That comes down to a mixture of company culture and customer insight."²

- Crawford Davidson, Director (Clubcard Loyalty Program), Tesco.

A Master at CRM

Every three months, millions of people in the United Kingdom (UK) receive a magazine from the country's number one retailing company, Tesco. Nothing exceptional about the concept - almost all leading retailing companies across the world send out mailers/magazines to their customers.

These initiatives promote the store's products, introduce promotional schemes and contain discount coupons. However, what set Tesco apart from such run-of-the-mill initiatives was the fact that it mass-customized these magazines. Every magazine had a unique combination of articles, advertisements related to Tesco's offerings, and third-party advertisements.

TESCO - The Customer Relationship Management Champion - Next Page>>

1] 'How a Supermarket can be a Corner Shop,' www.crmguru.com, January 23, 2003.

2] 'How a Supermarket can be a Corner Shop,' www.crmguru.com, January 23, 2003.


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