Friday, 11 June 2010

Tesco – driving growth through better data

This week Sir Terry Leahy of Tesco announced that he would be stepping down next March from the role of CEO. It prompted a number of articles in the press about Leahy’s achievements in building Tesco into the UK’s largest supermarket chain, and global brand (almost 30% of its revenue comes from overseas sales).

Leahy was responsible for launching the Tesco Clubcard, the loyalty scheme which uses data gathered at the tills and has been much copied in retail. By making good use of the enormous volume of purchasing information stored every day, Tesco are able to target promotions more accurately. In a world where direct mail often gets less than a 1% response, Tesco get up to a 95% take up of their offers. How? By carefully tailoring their offers to known customer preferences.

One of Tesco’s rivals recently enclosed a free sample when my shopping was delivered a month or so ago. It was for a new brand of baby food. How kind I mused, as I threw it away. No babies in my household. There are many, many more examples where that came from. Not only are such promotions wasteful but they also underline that the company isn’t interested in what their customers like. They are only interested in what they might get back from the promotion.

So whilst the meteoric rise of Tesco is not without its detractors, they have done a great deal to demonstrate how to use data to increase sales. Food for thought, huh?

10 comments:

  1. Nyallpurposepaving.com offers Paving Contractor, Parking Lot Repairs, sealing, striping, Oil and Stone Driveways at Riverhead NY, Quogue NY, Hamptons NY, Southampton NY, Sag Harbor NY, Green point NY, Wading River NY, East Moriches NY, Center Moriches NY, Mannorville NY, Miller Place NY , Mt. Sinai NY,Greenport NY

    ReplyDelete
  2. Diskdatadestruction.net offers hard drive destruction, Paper shredding at Hauppauge NY, Suffolk County NY, Long Island NY, Ronkonkoma NY, Melville NY, Huntington NY, Garden City NY, Farmingdale NY, Westbury NY, Bohemia NY, Stony Brook NY,
    and Nassau County NY

    ReplyDelete
  3. geffnerkersch.com Divorce Attorney Nassau County NY, Prenuptial Agreements Nassau County NY. Call us now: (516) 268-9898

    ReplyDelete
  4. Atopcommercialpaving.com offers Commercial Paving, Asphalt Contractor, and Parking Lot Resurfacing at Queens NY, Nassau County, Bayside NY, Jamaica NY, Middle Village NY, Ozone Park NY, Howard Beach NY, Little Neck NY

    ReplyDelete
  5. Jettonsgrading.com offers Grading, Excavation and Paving Contractor, Land Clearing Services, Septic Systems, Retaining Walls and Driveways, Drainage Systems, Construction Site Clean-Up, Demolition Contractor at Walhalla SC, Seneca SC

    ReplyDelete
  6. Bedbugprocpc.com offers Bed Bug Exterminator, Bed Bug Inspections, Bed Bug Elimination, Bed Bug Inspection for Hotels and Residential and Commercial Bed Bug at Palo Alto CA, San Mateo CA, San Jose CA, Belmont CA, San francisco CA, Redwood City CA, Sunnyvale CA

    ReplyDelete
  7. reliablecommercialpaving.com offers Parking lot paving, walk way construction, Commercial paving, asphalt, Parking Lot Repairs, Parking Lot Striping, Commercial Blacktop, Parking Lot Repairs, Commercial Paving Contractor, Commercial Asphalt Contractor at New Jersey at Hanover NJ, East Orange NJ, Newark NJ, Morristown NJ, Summit NJ , Union NJ, Hackensack NJ, Patterson NJ

    ReplyDelete
  8. Landscape , Outdoor, Landscape Lighting Installation, Lawn Sprinkler Design, Repairs, Installation, Lawn Irrigation Service, Sprinkler System Backflow Testing at Long Island, Nassau County, Suffolk County, Dix Hills NY, Huntington NY, Syosset NY, Smithtown NY and Happauge NY

    ReplyDelete
  9. Complete-pest-control.com offers Pest Control, Exterminator, Rodent Control, Rodent Elimination, and Pest Elimination at Palo Alto CA, San Mateo CA, San Francisco CA, Redwood City CA, Sunnyvale CA, and Belmont CA

    ReplyDelete
  10. Davispestmanagement.com offers Pest Control, Exterminator, Bed Bug Removal, Inspections, Rodent, Pest Elimination, Commercial, Residential, Professional, Licensed Exterminator , Scorpion, Bee Hive, Hornet, Fire Ant Removal by Service Area, Las Vegas NV

    ReplyDelete