Book Summary Preview : Scoring Points

The Big Idea
The retail and food industry is a very competitive sector. To make it in the said industries you have to set your brand above the rest and understand the need for brand loyalty. One way of gaining brand loyalty is through a customer loyalty program.

Scoring Points teaches you how to make customer loyalty schemes work. It gives insights on Tesco’s Clubcard program and the successes, obstacles and lessons the endeavor gained and faced. It shows how a daring leap of marketing imagination propelled Tesco to become number one in the UK grocery business.

Questions of Loyalty

Types of Loyalty

• Purge Loyalty. Offering customers the lowest price on the right range of products.
• Pure Loyalty. Finding out what the customer wants and giving them more of it.
• Pull Loyalty. Attracting customers through “buy-one-take-one” schemes.
• Push Loyalty. Offering new channels or creating new buying behavior through combined loyalty and discount cards or offering cheaper prices to members.

How Loyalty Schemes Create Value

• More purchases.
• Provides the ability to mass-customize marketing communications.
• Assets value of data.
• Lets companies track customer trends
• Minimizes waste.
• Helps promote trust.

Secrets of Program Success

• Love the program. Marketers, staff and managers should love the brand and be committed to the program that represents the brand.
• Have a clear view of what loyalty means and how it can be used to expand customer good will. 

Making Loyalty Pay
The Economics of Loyalty Marketing

• Investment in cash . Huge investment in time, IT resources, talent and money.
• Investment in people. This should be integrated with the business - the people who run and work in the company. Develop goodwill by encouraging customers to contact the company if they have any comments, suggestions or complaints.
• Customer charter. Engage the members as stakeholders in the brand. Take note of what you promise them, what they are saying and respond to it.
• The cost of stopping. A loyalty program is difficult and costly to stop once you get it going. Customers might react negatively to any changes or stoppage in the program. This could hurt your bottom-line.

Want to read the rest of this summary? click here >>