Tesco has built its massive Crucible database to parlay the collection of seemingly innocuous demographic information – starting with simple name, age and address – into a powerhouse operation that leverages state-of-the-art CRM software, Zodiac Profiles.
(This) better brand of customer loyalty software allows Tesco to better understand regional differences and make decisions regarding store locations, type of coupon or promotions much more accurately. It also allows them to see markets and products where they might be under-performing, which will allow them to focus their efforts in a precise manner.
Tesco treads softly, in deference to the sensibilities of those who view as “Orwellian” the retailer’s linking of customer data with credit reports, loan applications, electoral roles, government statistics and real estate databases.
“Tesco has developed their database carefully to avoid conflicts with the Data Protection Act, but this has not stopped lawsuits and court challenges from various newspapers and consumer groups,” HubPages points out. “Privacy conscious consumers have started websites like cardexchange.org that encourage customers to swap loyalty cards to thwart businesses from tracking their shopping habits.”
Still, Tesco’s efforts have enabled it to weave loyalty marketing into the very fabric of its existence. In 2005, Steve Goodroe, CEO of Tesco’s dunnhumby USA affiliate, summed up the challenge of creating synergy in a vast, faceless retail world:
“Your customers know when you get it wrong. They know that you