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IJRDM 33,3

Building brand webs

Customer relationship management through the Tesco Clubcard loyalty scheme
Jennifer Rowley
School for Business and Regional Development, University of Wales, Bangor, UK
Purpose This article undertakes a case study-based analysis of the Tesco Clubcard loyalty scheme that seeks to re-conceptualise the role of loyalty schemes by focusing on the role of loyalty schemes in branding and brand webs. Design/methodology/approach The article takes a case study-based approach. Tesco Clubcard has been chosen as the case under study, because it is a signicant scheme, and because Tesco have a reputation for innovation in relation both to the use of technology and to approaches to delivering customer value. The analysis describes the features of Clubcard, with specic reference to the network of relationships facilitated through the scheme and the actual or potential value that Tesco and its partners, be they customers or other organisations, derive from the scheme. Findings Tesco Clubcard builds relationships on additional dimensions, through: the option to collect Clubcard points through transactions with other retailers; the option to use reward points with a range of leisure and associated outlets, and, the e-loyalty element of the scheme accessible through the internet. This multidimensional approach to relationships builds a visible relationship web that is central to marketing communication and brand building associated with the Tesco brand. Both brand perceptions and experiences are built as customers make choices regarding the paths through which they will travel. The brand web operates at the three levels of experience, community, and customer data and knowledge. Originality/value The research question, Do loyalty schemes work?, needs to be reframed to encompass this extended model of the role of loyalty schemes, to surface questions associated with the effect of loyalty schemes on brand perceptions and associated consumer behaviour. Keywords Brands, Loyalty schemes, Customer relations, Supermarkets Paper type Research paper


The technology of loyalty cards allows retailers to transform cold data on consumer behavior into warm relationships and eventually into a genuine customer loyalty founded on mutual understanding and trust. A warm relationship is also a learning relationship (Mauri, 2003, pp. 13-14).

International Journal of Retail & Distribution Management Vol. 33 No. 3, 2005 pp. 194-206 q Emerald Group Publishing Limited 0959-0552 DOI 10.1108/09590550510588361

A number of retailers and other service providers have introduced loyalty schemes over the past few years. These loyalty schemes usually involve the customer being given a plastic card to which credit points can be added when the customer makes a purchase. When the customer joins the loyalty scheme they may be asked to complete a form which asks for details such as their name and address; these are subsequently entered into a database. Once a customer has an entry in the database, further records of customer purchases can be added, so that ultimately it is possible to build a prole of

individual customer purchasing habits. This database of customer purchase proles can then be used to segment the retailers customer base, for purposes of direct marketing and tailoring other marketing communications and special offers to customer requirements. In exchange for registration, the customer receives points that can be used in full or part payment for products or services. There has been considerable debate about the value of loyalty cards for both the consumer and the schemes sponsor. Criticism can be grouped into those that cast doubt on whether what might merely be viewed as a modest discount arrangement, akin to electronic green shield stamps can generate customer loyalty, and those who comment on the difculties associated with the analysis of the customer purchase data that retailers can collect through loyalty schemes. This article undertakes a case study based analysis of the Tesco Clubcard loyalty scheme. This loyalty scheme extends beyond the traditional model of a loyalty scheme in which customers exchange modest rewards for customer data and information, to the creation of a relationship or brand web. Customers are invited to engage with this web at a number of different levels. After a review of some of the earlier work on loyalty schemes, this article rst describes elements of the Tesco Clubcard loyalty scheme, in terms of rewards, deals, and integrating channels. Finally, the article poses a number of research questions that extend beyond the more parochial assessments of the impact on loyalty scheme membership loyal behaviours, customer value, and business performance, to the potential of loyalty schemes in building brand perceptions and experience. Literature review Relationship marketing shifts the focus of the marketing exchange from transactions to relationships (Foss and Stone, 2001; Peck et al., 1999; Christopher et al., 1991; Buttle, 1996). Relationship marketing acknowledges that a stable customer base is a core business asset. The essence and nature of relationships and their business vale is encapsulated in the concept of customer loyalty, and its associated literature. The benets of customer loyalty to a provider of either services or products include: . lower customer price sensitivity; . reduced expenditure on attracting new customers; and . improved organisational protability. Customers may demonstrate their loyalty in any one of a number of ways; they may choose to stay with a provider, whether this continuance is dened as a relationship or not, or they may increase the number of purchases or the frequency of their purchases or even both. They may also become advocates of the organisation concerned by playing a powerful role in the decision-making of others (Hallowell, 1996; Birgelen et al., 1997; Reichheld et al., 2000; Bolton et al., 2000). Loyalty schemes have become widespread in recent years. Byrom et al. (2001) suggest that there are over 150 such schemes in the UK, resulting in the circulation of more than 40 million cards. Others report on the application of such schemes in Europe and other parts of the world (Boedeker, 1997; Cuthbertson, 1998; Sopanen, 1996). The web site provides information on the following reward and loyalty card schemes: Nectar, WH Smiths Clubcard, Homebase Spend and Save, GAME, Barclaycard Rewards, Boots Advantage Card, Tesco Clubcard, Argos

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Premierpoints, American Express, Blackstar, Accucard credit card, MutualPoints, ipoints, and Greasy Palm. provides details of a number of hotel chain and airline loyalty schemes or frequent yer programmes. These include: Marriott Rewards, Hyatt Gold Passport, American Airlines AAdvantage, and Virgin Flying Club. Loyalty or reward schemes typically involve the issue of points according to the value of the customers shopping bill. Rewards are then made available in the form of discounts, and opportunities to use points in part or full payment for products or services. Despite the considerable growth in loyalty schemes, there has been considerable debate about the value of loyalty schemes, to either businesses or consumers. Indeed many have asserted that such schemes have failed (Divett et al., 2003; Worthington, 2000; Wright and Sparks, 1999; McIlroy and Barnett, 2000; Rowley, 2000). In 2001 Byrom argued that with many retail organisations terminating their scheme, such schemes were at something of a crossroads. Criticisms of schemes fall into three broad groups: those that assert that the relationship between such schemes and the cultivation of loyalty is tenuous; those that argue that organisations are not making appropriate use of data; and, those that argue that the reward mechanisms in loyalty schemes are inappropriate. Some believe that the term loyalty card is a misnomer (Worthington, 2000) The customers loyalty is simply not for sale. It cannot be bought by companies or deals. Real brand loyalty results from an emotional bond created by trust, dialogue, frequency, ease of use and a sense of value and added satisfaction. Loyalty is the reection of a customers subconscious emotional and psychological need to nd a constant source of value, satisfaction and identity (Jenkinson, 1995, p. 116). Customer loyalty has been conceptualised as an interaction of attitude and behaviour (Samuelson and Sandvik, 1997). However, there is debate about the nature of the interaction. East (1996), for example, believes that thought and feelings are interwoven and that changes in one component may affect others in the system. Indeed, there is a range of conceptualisations as to what constitutes loyalty. These range from repeat purchases to a lifetime relationship (Dick and Basu, 1994). Loyalty behaviours include relationship continuance, increased scale or scope of relationship, and recommendations (Hallowell, 1996). There is a positive association between customer satisfaction and customer loyalty (Soderlund, 1998) although the nature of this association is subject to signicant discussion and investigation. OMalley (1998), seeking to explore the extent to which loyalty schemes can build loyalty, examines the different types of loyalty proposed by Dick and Basu (1994): no loyalty, spurious loyalty, latent loyalty, and sustainable loyalty. She argues that loyalty schemes can only offer value as part of a coherent value proposition in the context of sustainable loyalty; a key role is in converting spurious loyalty, in which relative attitude is low and patronage behaviour high repeat, to sustainable loyalty. This involves converting convenience-based loyalty to commitment, and reduces the customers inclination to defect. Divett et al. (2003) comments on the relationships between commitment and loyalty. Commitment is said to consist of three components: involvement, identication and loyalty. Using these denitions, the key research question is whether loyalty schemes can contribute to enhanced commitment, not whether they promote loyalty. An exploration of the answer to this research question would require a wider discussion of

the contribution of loyalty schemes in the realms of promoting involvement, and identication, alongside loyalty. We argue later that a key strategy for promoting involvement and identication is brand positioning and building. The rewards are the key mechanism for incentivising customers to participate in the scheme. OBrien and Jones (1995) identify the following ve elements that contribute to the value of a loyalty scheme: cash value (how much the reward represents as a proportion of spend), choice of redemption options (the range of rewards offered); aspirational value (how much the customer wants the reward); relevance (the extent to which rewards are achievable); and convenience (ease of participation in the scheme). Parker and Worthington (2000) argue that customer loyalty to a reward scheme is likely to be affected by relative attitude, social factors and situational factors. First, customer loyalty is likely to be affected by the satisfaction that a customer feels towards the degree of return that they are receiving. Second, their loyalty behaviour could be affected by what is available from other schemes, and third, their behaviour may be inuenced by other consumers, the media, and social norms. They go on to argue that the loyalty card that they investigated did not reward its customers equitably, as it was offering lower reward values on those products most likely to be saved for. OMalley (1998) discusses the extent to which too many schemes has created customers who have come to expect a reward as part of the normal shopping experience, and place a low value on rewards. Mauri (2003) raises the question of whether customers are loyal to their cards. They surface the need to recognise that loyalty to cards and loyalty to the brand or organisation promoting the card may not be the same thing, and also provides a platform for asking whether cards are in fact used consistently by shoppers. Erratic and intermittent use of cards has signicant consequences for the quality of any data collected about shopping activities. It may also be useful to remember that families and other tight knit social groups sometimes share cards. This extends questions of the nature of loyalty to embrace the question of who is loyal to what? Loyalty cards are also about the collection of customer data. In a bonus program, the bonus is the price for the information that I get. I buy knowledge through it, not loyalty, because loyalty is not purchasable (Jenkinson, 1995). Loyalty cards provide retailers with information on individuals weekly purchases and how product associations are being made. The effectiveness of promotions can also be analysed by the number of items on offer sold (Gonzalez, 1997). Every time that a loyalty card is swiped at the point of sale, the retailers systems are triggered to record the name of the shopper, the time that they came to shop, the store that they visited and the entire content of their trolley (Field 1997). Byrom (2001) proposes a model that identies the potential applications of such data. Included are: corporate planning, store portfolio segmentation and planning, brand management, merchandising, promotional/media activity, and direct marketing. All of these processes from a basis for tailored, and even personalised communication with customers (Duffy, 1998). Data that are collected through loyalty schemes require both storage in large data warehouses and the use of appropriate data mining techniques if they are to be transferred into viable sources of information. However, several authors note that the use of data has largely been restricted to the arena of direct marketing (Byrom, 2001; OMalley, 1998; Knox, 1998). Dowling and Uncles (1997) warn that the loyalty scheme membership does not represent the entire actual or

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potential customer base, and that it is important to place loyalty data in context, as one of several sources of market research information. In addition, there is evidence to suggest that customers are often holding more than one card (Davies, 1998; Passingham, 1998). Case study methodology Case studies are a valuable way of looking at the world around us, and asking how or why questions (Yin, 1994). The case study design adopted in this article is a holistic single case design. Typically single case designs are appropriate when the case has something special to reveal that might act as a point of departure for challenging received wisdom, and prior theoretical perspectives and assumptions. Tesco Clubcard has been chosen as the basis for the case analysis in this article for a number of reasons: . Tesco has a reputation for being innovative in their use of information technology solutions (Rowley, 2003). . Tesco is the UKs largest retailer, with a very signicant customer base. In addition many of those customers return at weekly or similar intervals. This means that Clubcard data and relationships are both deep and wide. Tesco collects consumption data on a signicant proportion of the UK population, on a regular basis. . Tesco Clubcard integrates customer interaction across both click and brick channels. . Tesco Clubcard engages with a large number of corporate partners in relation to the earning and delivery of rewards. The analysis presented below describes the features of Clubcard, with specic reference to the network of relationships facilitated through the scheme and the actual or potential value that Tesco and its partners, be they customers or other organisations, derive from the scheme. Whatever the value of the scheme to others, there is no doubt that Tesco is in control, and that their marketplace power is enhanced through customer knowledge and knowing. The characteristics of Nectar, arguably one of Tesco Clubcards main loyalty scheme rivals are briey described for comparison purposes. Tesco Clubcard Tesco Clubcard is loyalty scheme with a reward scheme that embeds multiple relationships, extending beyond the simple relationship between Tesco and their customers. The scheme introduces customers and other businesses to each other, through a brand or relationship web, and thereby builds brand experiences and value. The brand building aspects of Tesco Clubcard are discussed under earning rewards, deals, and integrating channels. Earning rewards Customers can earn points through meeting everyday needs, and undertaking everyday activities. Appendix 1 summarises the ways in which Clubcard members can earn points. Tesco, supports them, for example, in gaining rewards from meals out,


glasses and contact lens, homewares, travel, dry cleaning, and car maintenance. In addition, many of these activities will be performed in the general locality of the Tesco store that the customer normally uses, and from a customer experience perspective extends their engagement with the local retailing community. The message is Tesco is an everyday experience. From a customer data perspective, the opportunity to earn Clubcard points through partner organisations means that Tesco is able to expand its customer proles relating to their consumption activities to arenas beyond supermarket shopping. For example, a customer who earns points though the use of Autocentre is providing the data that makes it possible for Tesco to collect data concerning the type of car that their customers drive. The value of Clubcard points is doubled, if instead of being used in store, they are used to access Clubcard Deals. Premium customers are rewarded for their spend level with Tesco with an enhanced return when they access Clubcard Deals. Given the nature of these Cludcard Deals, this means that Tesco are encouraging and rewarding their customers, and in particular, those customers with high spends, to engage with other brands. Additional rewards are sent to the customer in the quarterly mail-out that includes a statement, vouchers to the value of the rewards earned, and information on Clubcard Deals. The mailing includes coupons, with relatively short redemption dates for specic items to be purchased in store. These coupons are for items that the customer purchases, so they are targeted to afrm and extend consumers current purchase behaviour.

Tesco Clubcard loyalty scheme


Deals The range of Clubcard Deals shown in Appendix 2 makes Tesco look like a lifestyle option partners with organisations that can offer a deal for a wide range of life activities. All of these deals are experience-based. Being offered such a range of deals, creates a perception that Tesco is at the hub of a wide range of relationships that the Clubcard can open doors to a wide variety of good things. At the same time, each of these organizations is gaining exposure through being listed in the Clubcard Deals brochure, and otherwise published through Tesco channels. Tesco is providing an introduction in the relationship between customers and Tescos partner businesses. From a branding perspective they contribute to the creation and delivery of the Tesco promise every little helps. This phase takes on a totally different meaning. From its roots as a slogan which suggests that every little economy, due to competitive pricing of everyday products the slogan is translated into every little enjoyable experience helps make life move along pleasantly. Once a customer ventures to savour one of these experiences the Tesco brand will be associated with the experience. Tesco has either made great experience possible, or is implicated if something goes wrong. The service experience delivered by one of Tescos partners becomes an extension of the Tesco service experience. This is a high-risk strategy, but if successful, it contributes to lifting Tesco from a convenience everyday brand, to an experience brand. Terms such as family fun are used in the Clubcard Deals brochure. The creation of the sub brand Tesco freetime, which is the brand used for the organisations that translated tokens to Deal vouchers, conveys the

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twin values of: leisure time, and experiences that are cost-free due to the use of Clubcard vouchers. Brands are discursive constructs that occupy discursive space in which meaning is created (Leitch and Richardson, 2003). By positioning themselves at the hub of a brand web, Tesco takes on the role of managing these meanings. Each corporate brand (representing a different organisation) or node in the brand web has its own corporate identity and brand values. Tesco needs to assess the compatibility of respective corporate identities and brand values, not only with the Tesco corporate identity, but also between nodes in the web. Not only individual brands, but also brand web families have associated value. Individual brands cannot be allowed to undermine the value of the brand web. This also involves responding to changes in brand positioning, and potential competition for positioning between members of the brand web. Another aspect of Tesco branding is the relationship between the brands Tesco and Clubcard. It might be argued that both brands are located at the hub of the brand web. They would appear to have separate but interlinked identity. Clubcard appears in larger letters than Tesco on any Clubcard documentation, and on the Clubcard web site, Tesco is not used in conjunction with Clubcard on the web site. There would appear to be some ambiguity as to whether the brand web is associated with Tesco, or Clubcard, and whether the aim is to promote loyalty to the Clubcard of the brand web. Integrated channels Tescc Clubcard has an e-presence ( This offers a further opportunity for interactivity between the scheme and its members. This is a rich environment for building customer and brand relationships, and for collecting customer data. Importantly, Clubcard operates seamlessly between online and in-store modes. From a relationship perspective this allows customers additional access to their statement, and information about the scheme in parallel with printed documentation, and access to clubs. From a branding perspective, the brand web is replicated, and developed in the virtual world. From a customer data perspective, Tesco, and any partners with whom they share data, can build integrated proles of online and ofine shopping activity; they have customer proles that transcend channels. The web site provides information about the scheme, and opportunities to join the scheme, and allows members to check their statement, and to switch between e-vouchers and traditional vouchers. E-vouchers have limited applicability, as they can only be used to buy groceries online. Members can also inspect Clubcard Deals online, change their address or simply stay in touch. The Clubcard web site also provides a link to the web sites of free clubs, as listed below: . Baby Club information, advice, support, and special offers; . Toddler Club Kids Club; . Healthy Living Club; and . World of Wine. These clubs offer information, advice, magazines, and a range of special offers. Clubcard members need to register specically to become members of these clubs, thereby providing Clubcard with even more proling information about the customer. For example, the Wine Club, offers wine tips, a wine guide, wine recommendations, and

some special offers. The Healthy Living web site has information on healthy body, healthy eating, health mind, and go organic, a range of news items, and special offers. This page also provides a link through to iVillage, another brand within the Clubcard brand web. is a safe, monitored community for women to meet up online. Whilst offering information and advice, and other magazine-type articles, iVillage also has an online community with message boards, and member support. This provides an opportunity for the development of online customer-to-customer relationships. From the Tesco web site it is also possible to click through to the web sites of brands in the brand web; the Tesco site is acting as a portal, and providing click through opportunities to other sites, and thereby a web connection in e-space. Nectar Nectar is arguably one of Tesco Clubcards main rivals in the loyalty scheme marketplace. Interestingly it has also developed alliances for the delivery of rewards; alliances form the basis of a brand web. But, Nectar differs from Clubcard in that it is managed by a dedicated loyalty management organisation, rather than by a leading retailer. A number of retailers, act as sponsors to Nectar, such as Sainsburys who previously ran their own scheme. A brief description of Nectar is included here, for comparison purposes, and to demonstrate that the model adopted by Clubcard is not unique. Nectar is a loyalty scheme, or as they describe it a reward programme operated by Loyalty Management UK Ltd, in conjunction with a range of sponsors. These include Sainsburys, Debenhams, participating BP service stations, participating Thresher Group stores, Vodafone retailers, participating Adams outlets, participating Ford dealerships, and AllSports stores. Customers of London Energy, Seeboard Energy and SWEB Energy can register to earn Nectar points. Points can also be earned with Barclaycard. Nectar points can be earned at the rate of two Nectar points for each 1 spent, with most sponsors. Points can also be earned when customers shop by phone or on Sainsburys or Debenhams web sites. They can then be spent in-store in Sainsburys, Argos and Adams, or used for experiences in one of the following categories: holidays, ights and travel, great days out, entertainment, eating out, adventure, and charity giving. Each of these categories includes a number of attractions or other brands, such as McDonalds, TGI Fridays, English Heritage, Megabowl, Alton Towers, and the Eden Project. Many associate positive and leisure experiences with the Nectar brand, and possibly, thereby with the sponsoring retailers brands. The following quote from the Nectar web site ( illustrates the type of message that the web site seeks to communicate:
Use your Nectar points to help keep you in shape with some amazing free membership deals from Cannons Health and Fitness Clubs, or take a romantic city break with return tickets on Eurostar. Or if you prefer a gentler start to the year you can get big savings on a selection of Lunn Poly holidays, or simply settle in for the night with a free movie or game rental from Blockbuster.

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Nectar also has a web site that provides information, click-throughs to members of the brand web, and opportunities to check the status if a customers account, and to connect customer service associated with the scheme.

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Conclusions This article has reviewed the previous literature on loyalty schemes in retailing. Despite considerable scepticism from some commentators, the concept of the loyalty scheme is evolving and becoming more sophisticated. In the UK, Tesco Clubcard and Nectar are two different models for loyalty schemes, one led by a major retailer with an established brand, and the other managed by Loyalty Management UK Ltd, as specialist loyalty management company, and launched under a brand created uniquely for the loyalty scheme. Both have created brand webs, and have an e-presence. This new model of loyalty scheme suggests a change in the objectives of loyalty schemes. Whereas the rewards focus which has been at the core of early implementation and research on loyalty schemes concerns itself with the actual value offered to the customer through the schemes rewards, new models of loyalty schemes are more concerned with developing perceptions of value through brand associations and customised interactions with loyalty scheme members. The focus has shifted from trying to change customer behaviour, to seeking to change customer attitudes. This is consistent with OMalleys (1998) assertion that the real opportunity for loyalty schemes is in the conversion of spurious loyalty into sustainable loyalty, or to put this another way to convert relationships based on convenience to those based on commitment. Both the route through brand association and that through interactivity is risky. The quality of service experience through both of these channels (one a distribution channel, and the other a communication channel) can have both positive and negative effects on the brand reputation, image, and experience. In research terms, the key research question Do loyalty schemes really build loyalty?,that has preoccupied OMalley and others, can be recognised as only one representation of the more generic question: Do loyalty schemes work. The answer to this question depends on the objectives of loyalty schemes. It is proposed that, on the basis of the model of loyalty scheme provided by the two case studies in this article, the objectives of loyalty schemes for the future need to be articulated at a more strategic and less operational level than previously. Previous commentators have discussed loyalty schemes in terms of rewarding loyal customers, generating information, manipulating consumer behaviour, and defending against competitive schemes (OMalley, 1998). These schemes demonstrate the role of the loyalty scheme in building brand perceptions, experience and value. The objectives of loyalty schemes are to build and sustain customer relationships through: . managing the value offered to the customer; . managing, and where appropriate, customising the interaction with the customer, using a range of channels; . building customer perceptions of brand value through diversied, and meaningful and pleasurable brand experiences; . introducing loyal customers to partner brands, and thereby mutually building brand communities; and . enhancement of Tescos and its partners customer knowledge through mutual exchange of customer data. These objectives provide direction and foundation to the research and development agenda associated with loyalty schemes. Key questions concerning loyalty schemes, all

of which contribute to the exploration of the generic research question Do loyalty schemes work?, are: . Do loyalty schemes as currently used, or as they could be used in the future generate data that can enhance customers perceptions of the value of the interaction with them? . Do loyalty schemes affect customers perceptions of the brand and the brand experience, and if so, is the effect predominately positive or negative? . Is it possible to differentiate between loyalty to the brand, the store, or to the loyalty scheme itself? To which of these do loyalty schemes generate commitment? . Do customers evaluate the reward value associated with the loyalty scheme, and if they do, how do they make this assessment? What impact does this assessment of value have on their behaviour and attitudes towards the scheme and the brand? . Do loyalty schemes enhance consumer and shareholder perceptions of brand value? What is the role of the brand web in this process? . Which model of loyalty scheme management association with one large retailer, and an independent scheme serving a number of retailers will have the most signicant impact on customer retention and customer lifetime value proles for individual retailers? These questions, and the proposition that loyalty schemes can have a role in brand building and persuasion, are part of the wider investigation into the interface between consumer behaviour and decision making and relationship management initiatives. This can be articulated more fully by posing and exploring questions relating to the impact of relationship management initiatives, in general, and loyalty schemes, in particular, on:
. .

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. . .

consumers propensity to purchase form the hub brand (e.g. Tesco); consumers perceptions of risk associated with engagement with the hub brand or its brand partners; appropriateness of segmentation schemes; consumption practices across different categories of products or services; and consumption behaviour in relation to members of the brand web, specically whether customers return after their initial introduction.

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Parker, C. and Worthington, S. (2000), When lemonade is better than whisky: investigating the equitableness of a supermarkets reward scheme, International Journal of Retail & Distribution Management, Vol. 28 No. 11, pp. 490-7. Passingham, J. (1998), Grocery retailing and the loyalty card, Journal of the Market Research Society, Vol. 40 No. 1, pp. 55-63. Peck, H., Payne, A., Christopher, M. and Clark, M. (1999), Relationship Marketing: Strategy and Implementation, Butterworth-Heinemann, Oxford. Reichheld, F.F., Markey, R.G. and Hopton, C. (2000), E-customer loyalty applying the traditional rules of business for online success, European Business Journal, Vol. 12 No. 2, pp. 169-88. Rowley, J. (2000), Loyalty kiosks: making loyalty cards work, British Food Journal, Vol. 102 No. 5/6, pp. 390-7. Rowley, J. (2003), Beds, insurance and coffee a complete retail experience from Tesco online, British Food Journal, Vol. 105 No. 4/5, pp. 274-8. Samuelson, B. and Sandvik, K. (1997), The concept of customer loyalty, EMAC Conference Proceedings, University of Warwick, Coventry, pp. 1122-40. Soderlund, M. (1998), Customer satisfaction and its consequences on customer behavior revisited, International Journal of Service Industries Management, Vol. 9 No. 2, pp. 169-88. Sopanen, S. (1996), Customer loyalty schemes: the bottom line, European Retail Digest, Summer, pp. 12-19. Worthington, S. (2000), A classic example of a misnomer: the loyalty card, Journal of Targeting, Measurement and Analysis for Marketing, Vol. 3, pp. 222-34. Wright, C. and Sparks, L. (1999), Loyalty saturation in retailing: exploring the end of retail loyalty cards?, International Journal of Retail & Distribution Management, Vol. 27 No. 10, pp. 429-40. Yin, R.K. (1994), Case Study Research, 2nd ed., Sage, Thousand Oaks, CA. Appendix 1. Earning Clubcard points Clubcard points can be earned by: . Making purchased in Tesco stores, including purchases at petrol stations, and coffee shops. One Clubcard point is earned for every pound spent. . Making purchases online at . Using a Tesco credit card 50 per cent more points can be earned by shopping in Tesco with Tesco credit card, and extra Clubcard points are earned whenever the credit card is used for purchases. Tesco personal nance is a joint venture between Tesco plc, and The Royal Bank of Scotland plc. . By shopping with each of the following companies: Beefeater, Dollond & Aitchison, Allders, Travelcare, Johnsons, Nationwide Autocentre, Marriott, and National Tyres and Autocars. . The Nutri Centre products can be ordered by telephone or online. . Recycling mobile phones. Every three months customers are sent a Clubcard statement. If they have earned over 150 points, they receive Clubcard vouchers, together with a copy of the magazine. Every 150 points is worth 1.50 in vouchers. In addition to vouchers, members are sent coupons for items that the database suggests that they have purchased recently.

Tesco Clubcard loyalty scheme


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Appendix 2. Clubcard Deals Using Clubcard Deals doubles the value of Clubcard vouchers when they are exchanged or Deal tokens. Premier Clubcard customers get four times the value of their Clubcard vouchers when they are exchanged for Deals tokens, To qualify as a premium Clubcard customer, customers need to spend an average of 60 per week over a quarterly Clubcard collection period, in Tesco stores, using their Clubcard. Deal locations The tokens can be used at the following locations: . Theme parks: Legoland Windsor, Wicksteed Park, The American Adventure, Crealy Adventure Park, Pleasureland Amusement Park, Drayton Manor Family Theme Park. . Others: Blackpool Pleasure Beach, eXhilaration, Blockbuster (videos), Megabowl, UGC Cinemas Family Ticket. . Restaurants: Maxwells, Sticky Fingers, Navajo Joe, Palm Court Brassiere, Planet Hollywood. . Attractions: Thorpe Park, Alton Towers, Chessington World of Adventures, Warwick Castle, Madame Tussauds, The Tussauds Group. . Zoos and safari parks: National Marine Aquarium, Drusillas Park, Woburn Safari Park, South Lakes Wild Animal Park, National Wetlands Centre, Blackpool Zoo, Chester Zoo, Blue Planet Aquarium, Deep Sea World, Manor House Wild Animal Park, Anglesey Sea Zoo. . Museums: for example, The Shakespeare Houses, HMS Belfast, Museum of Rugby, CAT Centre for Alternative Technology, Indigo Jones Tudor Slate Works, Discover Point, Ulster American Folk Park. . Sightseeing: for example, London Pass, Hampton Court Palace, The Royal Yacht Britannia, Dewars World of Whisky, The Great Orme Tramway, The National Trust, The National Trust of Scotland, English Heritage. . Millennium visitor attractions: for example, Ceramica, Action Stations, The Lowry, Earth Centre, ecos Centre. . Hotel breaks with the following chains: Marriott Hotels, Ramada Jarvis, Macdonald Hotels, Hastings Hotels, Moat House Hotels. . Holidays and travel with the following operators: Bridge, Cresta Premier Holidays, Jetset, Cosmos Tourama, Libra Holidays, Haven & British Holidays, Butlins, P&O Ferries, Eurotunnel, Virgin trains, Midland mainline, GNER. . Motoring: Nationwide Autocentres, RAC. . Lifestyle: BBC magazines, Color Me Beautiful. . Sport and leisure: Fitness First Health Clubs, First for Golf, Motorsport. . Airmiles: Airmiles can also be collected through NatWest, Southern Electric, House of Fraser, and Shell petrol stations.