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