Case Study
Tesco.com increases product range and uses triggered communication to support CRM
Summery of the case:-
ü Tesco is well known
ü Tesco.com including various non-foods ranges (for example, books, DVDs and electrical items) and the telecoms businesses and Personal Finance, as well as services offered in partnership with specialist companies, such as dieting clubs; flights and holidays, music downloads, gas, electricity and DVD rentals.
ü Tesco introduced a clothing web site (Www.clothingattesco.com)
ü Tesco.com now receives 170,000 orders each week
ü Its online sales in the first half of the year were ₤401 million
ü Its profit increased by 37% to ₤21 millionTesco.com recognized as the worlds largest online grocer and its mean competitor are
o Asda.com
o Sainsburys
o Ocado
o ALDI-UK
ü Tesco.com Limited paid £2 million for the exclusive licence to eDiets.com in the
ü Humby Cind Hunt (2003), e-retailer Tesco.com used to identify six lifecycle categories which are then further divideclto target communications:
o Logged-on
o Cautionary
o Developing
o Established
o Dedicated
o Logged off (the aim here is to win back).
ü Focus on home retail delivery; Wade-Gery sold women's portal iViliage www.ivillage.co.uk) back to its
ü Taylor Nelson Softres Super Panel (see htip://superpanel.tns-global.com).
ü Hitwise listing since their strategy has been to focus on retail formats. These are Morrisons (12.5% retail share), Somerfield (5.5%) and Co-op (5.0%).
ü NMA (2005c) Quotes Nigel Dodd, marketing director at Tesco.com, as saying: 'These are invaluable sources as we have such a strong customer base'.
ü Strategic Approaches which have helped Tesco.com achieve success online:-
ü For existing customer E-mail marketing and Direct mail marketing in used to provide special offer and promotion to the customers
ü Tesco.com basically relies on in-store advertising and marketing to the supermarket’s Clubcard loyalty scheme’s customer base to persuade customers to shop online.
ü They have concentrated more on traditional services which have the demand. For Ex. Tesco Telecom fixed line services attracted over a million customers in their first year.
ü Tesco uses automated event-triggered messaging to encourage continued purchase.
ü Tesco.com has a touch strategy which includes a sequence of follow up communication triggered after different events in the customer lifecycle. For example: Communication after event 1 are indented to achieve the objective of converting a web-site visitor to action, communications after event 2 are intended to move the customer from a first-time purchaser to a regular purchaser and for event 3 to reactive lapsed purchasers.
ü Their Product range development is also one of the key areas of their success. They fulfilled all the Grocery order and also offer more intangible offering such as E-diets and music download etc.
ü They basically focus on improving the customer experience online
ü As they were diversify into new area they started to make home delivery services to the customers like white goods and other products.
ü They has partnership with E-diet, was promoted through the Tesco Clubcard loyalty scheme with mailing to 10million customers a year
ü They promote their services through URL. Tesco can use the dieting Business to grow use of the Tesco.com service and in-store sales.
Thanks and regards
Satyapal Singh Shekhawat
PGP II PGDM (S) Section B
Roll No. 09
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