Case Study: Tesco.com increases product range and uses triggered communication to support CRM

Case Study

Tesco.com increases product range and uses triggered communication to support CRM


Summary:-
• Tesco is well known Britain's leading food retail group presence in Europe and Asia.


• Tesco.com now receives 170,000 orders each week


• Its online sales in the first half of the year were ₤401 million


• Its profit increased by 37% to ₤21 million


• Tesco.com recognized as the worlds largest online grocer and its mean competitor are


o Asda.com


o Sainsburys


o Ocado


o ALDI-UK


• 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.


• Tesco introduced a clothing web site (www.clothingattesco.com)


• Taylor Nelson Softres Super Panel (see htip://superpanel.tns-global.com)


• 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%).


• NMA (2005c) Quotes Nigel Dodd, marketing director at Tesco.com, as saying: 'These are invaluable sources as we have such a strong customer base'.


• 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).


• Tesco.com Limited paid £2 million for the exclusive licence to eDiets.com in the UK and Ireland under the URLs www.eDietsUK.com and www.eDi.etsoie.


• Focus on home retail delivery; Wade-Gery sold women's portal iViliage (www.ivillage.co.uk) back to its US owners for an undisclosed sum in March 2004.



Strategic Approaches which have helped Tesco.com achieve success online:-

• For existing customer E-mail marketing and Direct mail marketing in used to provide special offer and promotion to the customers


• 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.


• 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.


• They basically focus on improving the customer experience online


• As they were diversify into new area they started to make home delivery services to the customers like white goods and other products.


• They has partnership with E-diet, was promoted through the Tesco Clubcard loyalty scheme with mailing to 10million customers a year


• They promote their services through URL. Tesco can use the dieting Business to grow use of the Tesco.com service and in-store sales.


• 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.


• Tesco uses automated event-triggered messaging to encourage continued purchase.


• 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.