Can a Customer Loyalty Database Change a Society? 270
Retrospeak writes "'Organisations that continue to put the brand at their epicentre and pay only lip service to the notion that the customer is king, will fail. It's just a matter of time.' So says business strategist Clive Humby. His marketing company, Dunnhumby handles the loyalty scheme database for Tesco, the third-largest retailer in world and the biggest retailer in Britain. This fact combined with a strong customer loyalty program means they may have one of the largest databases in the world. The Economist goes on to state that Britain itself is being changed by the secondary effects of Tesco's massive customer-driven database." From the article: "Some of these changes are small. The dust jacket of a book that was to be sold in-store was recently altered because a Tesco buyer did not like it. Others are more fundamental. Before the Clubcard came along, the largest panels that suppliers could use consisted of around 20,000 people. But suppliers can now pay for access to the database and many just rely on Tesco."
I am NaN (Score:4, Insightful)
Re:I am NaN (Score:3, Insightful)
Obligatory OS quote
"I have people skills! I am good at dealing with p
Re:I am NaN (Score:3, Interesting)
Re:I am NaN (Score:3, Insightful)
Increasing wages doesn't help - often the only people that seem to be hired are immigrant labor that aren't all that interested in higher wages - they will do the same low-quality work for min
Re:I am NaN (Score:3, Insightful)
Increasing wages doesn't help - often the only people that seem to be hired are immigrant labor that aren't all that interested in higher wages - they will do the same low-quality work for minimum wage or below.
You gotta be shitting me. Of course the immigrants want more money. If they have enough English to work checkout and do their job well, then you should pay them more. It does help retention. Most of the people I've seen working checkout are citizens that've been here a while (with the exception of
Wegmans v. General Motors (Score:5, Interesting)
Then there's GM. This dinosaur doesn't give people what they want--a well-built car that lasts a long time and sells for a reasonable price. Simply put, they don't get it. They believe that they have always been and that they have always done things the one true way.
Which company will grow?
Re:Wegmans v. General Motors (Score:2)
In Pittsburgh, where I am now, the local grocery market is such a depressing place that I'm shifting my grocery shopping to Wal-Mart. It's cheaper and service is act
Re:Wegmans v. General Motors (Score:3, Interesting)
Re:Wegmans v. General Motors (Score:2)
Yeah, because it costs an arm and a leg to shop there. At least at the bakery and deli, you can spend nearly double what you would at a typical supermarket (like $12 for a pound of turkey?!) Of course, the quality at Gelson's can't be beat, so I guess you get what you pay for. I only did full grocery shopping there once, during the supermarket strikes, and I will say I enjoyed my $10
Re:Wegmans v. General Motors (Score:2)
I did control for quality when I mentioned price, though. Their boneless chicken breasts were the best, at $7.99 a pound. Ralph's was a lot cheaper but didn't look nearly as good. They put a lot of care into deboning and deskinning the chicken at Gelson's, and you could really see a difference.
D
Re:Wegmans v. General Motors (Score:2)
I think Publix is probably about the best supermarket chain I've shopped in, but I will say that Sainsbury's in England has by far the best store-brand potato chips.
Re:Wegmans v. General Motors (Score:2)
At least a few years ago, the Giant Eagle in Squirrel Hill was pretty good . Of course, nothing beats going down to the strip district if you have the time.
Re:Wegmans v. General Motors (Score:4, Informative)
Wegman's seems to be a little more serious about their customer database and the quality of data it contains. My mother-in-law tried to use my wife's Wegman's loyalty card, and they checked her ID and wouldn't let her use it. I would really like to see the type of things they're doing with their DW.
Re:Wegmans v. General Motors (Score:2, Interesting)
Re:Wegmans v. General Motors (Score:4, Interesting)
The fact that the Toyota absolutely NAILED the American hip-hop submarket with their boxy Scion while sitting in their offices 10,000 miles away ought to scare the living shit out of GM. They've managed to figure out how to sell 10 year old styling to old people (and not in Korea either) but that's about it.
Re:Wegmans v. General Motors (Score:3, Interesting)
Re:Explain please... (Score:2)
Nothing I've read so far explains why any of this requires a loyalty card. Trends will exist with or without being able to identify individual customers (as they always have). In fact, I can't think of ANY reason that a company would need this, other than to ma
swap your loyalty cards... (Score:5, Insightful)
If enough people did this, the databases would suddenly start to pick up on unexpected trends - customers whose profile suggested eating tofu and lettuce would suddenly be buying cigarettes and crisps etc.
It seemed like rather an interesting idea to me...
Why? (Score:5, Insightful)
Personally, I hope to hell they learn everything they can about me so that my shopping experience will go smoother and faster.
Re:Why? (Score:2)
Re:Why? (Score:2, Insightful)
Re:Why? (Score:2, Insightful)
Re:Why? (Score:2, Insightful)
Let's hope what they learn about you is true.
http://www.nocards.org/news/index.shtml#fire [nocards.org]
Charges dismissed!
Arson charges against firefighter dropped after another confesses
We previously reported that a fireman in Everett, Washington had been arrested for setting a fire in his own home. The fire was reported to have been started using a "firestarter" which, although charre
Re:swap your loyalty cards... (Score:2)
Use a credit card once, and you are known. (Score:2)
The problem with lying is that, once you use a credit or debit card, your true identity is known exactly.
Re:Use a credit card once, and you are known. (Score:2)
Yeah, but there's this wonderfull new solution - a prepaid card that doesn't have your face on it, but some dead presidents ! You can buy them from ATM's or banks, and best of all, you can even know how much money these cards have since it reads on cards surface ! And they're even made of paper, so they won't harm the environment as much as plastic cards !
I think this invention is called "cash". Go
Only card holders pay the normal price. (Score:2)
You are not understanding something. The local Safeway grocery store, for example, raises prices considerably on many items, and then offers the normal price only to card holders. So, if you pay with cash, you will pay 20% more.
Cards give you cash back (Score:3, Interesting)
They don't pull much of this "card member discount" crap that stores here in the US do. When i lived in the UK I would probably use half of all the coupons that tesco mailed to me - they were THAT effective.
Re:swap your loyalty cards... (Score:2)
You buy a box of cakes and a tub of ice-cream? Get 10% off a Slim-Kwik[TM] diet plan.
Buy veggie-burgers? Special offer on veal cutlets!
Re:swap your loyalty cards... (Score:3, Interesting)
I make it a point to use my Dominick's card whenif I happen to shop at a Safeway. I don't care one bit that it's linked to my old address in Illinois, same with my Jewel/Osco card when buying chocochip cookies at Albertson's.
I guess I try to keep my shopping rather local if I can, even if it costs more and the service seems to be worse (yeah, right) than the b
Re:swap your loyalty cards... (Score:2)
No tracking necessary (Score:3, Insightful)
A database isn't needed for this. If the two Tescos were instead simply two unrelated corner shops, they'd still be selling different things. Local shops tend to do that - sell things that are in demand instead of things that are not in demand. No special database needed.
It's useful for other stuff though, like the article says, customer profiles means you can send a specific set of discount vouchers to each customer based on their preferences. You could get a similar effect by shipping all vouchers to all customers, but I suspect this would be less effective as most people are more likely to use a couple of vouchers that they find interesting rather than look through a booklet of dozens of vouchers to find ones that are interesting to them.
That's a bit silly, really. It leads to bland stuff that has been toned down to not offend anybody. Sure, if it offends a whole bunch of people, it might make sense to alter it, but one person?
Re:No tracking necessary (Score:5, Insightful)
That's a bit silly, really. It leads to bland stuff that has been toned down to not offend anybody. Sure, if it offends a whole bunch of people, it might make sense to alter it, but one person?
I think you misread the article. The Tesco buyer is a Tesco employee who buys for Tesco. It wasn't a customer buying from Tesco who complained.
Nope, parent was right. (Score:2)
>>That's a bit silly, really. It leads to bland stuff that has been toned down to not offend anybody. Sure, if it offends a whole bunch of people, it might make sense to alter it, but one person?
>I think you misread the article. The Tesco buyer is a Tesco employee who buys for Tesco. It wasn't a customer buying from Tesco who complained.
Even if he did misinterpret what a "Te
Re:No tracking necessary (Score:2)
Re:No tracking necessary (Score:2)
purchase engineer?
acquisition specialist?
procurement manager?
Can't think of any more
Re:No tracking necessary (Score:2)
The words "Tesco buyer" are unambiguous. What else could it have meant? Someone making a takeover bid for the Tesco company? A "Tesco customer" is a person who "buys from Tesco".
Re:No tracking necessary (Score:3, Informative)
Re:No tracking necessary (Score:2)
It's still got overpriced crappy fruit and vegetables and an awful selection of everything at any time of the day though.
Re:No tracking necessary (Score:2)
It's still got overpriced crappy fruit and vegetables and an awful selection of everything at any time of the day though
Agreed. Which makes the point of the article moot in my opinion. Sanesbury's was better, but it was further away from me so I ended up at the Tesco more often than I would like.
Re:No tracking necessary (Score:2)
Re:No tracking necessary (Score:2)
No, but it is needed to be able to sell it out to other companies.
I just don't get what's so different about Telco, or what is to make customers loyal to it. Telco:
Re:No tracking necessary (Score:2)
On a recent TV programme about Tesco they covered this scheme. When they send out their vouchers on a 3 month basis they get a sales boom equivalent to Christmas!
And by using the loyalty card scheme, their store profiles match the UK consumer profiles (By income) almost exactly.
Re:No tracking necessary (Score:2)
mutter..grumble.. free donuts...
Re:No tracking necessary (Score:2)
Incorrect.
Fat makes you fat.
Excess carbohydrates are turned INTO fat as well. Glucose is turned into pyruvate and enters the Krebs cycle. One of the products of the Krebs cycle is citrate, and when there is too much citrate, it is exits from the mitochondra (where the Krebs cycle occurs) and goes into the cytoplasm.
Here it is converted to oxaloacetate (
Re:No tracking necessary (Score:2)
Maybe that's what you meant, but that's not what you said. Unfortunately my mind reading skills are not up to speed.
What you said is (and I quote):
"It's fat that makes you fat (and is linked with diabetes), not carbs. I wouldn't take that Atkins diet too seriously - it's going right out of fashion."
I don't see any mention about fat not makin
Re:No tracking necessary (Score:2)
unfortunately it's been proven not to be so (can't find the link but I'm sure google will throw up a study or three) - atkins diet makes you thinner, not because of the lower carbs, but because you increase protein intake (ie. you eat things like steak which are high protein). The protein makes you feel full so you eat less...
So you're really eating less fat too.. you just don't realize you are.
I've done a few nonscientific experiments and the basic idea works.. for exampl
Re:No tracking necessary (Score:2)
It's not the liver that produces insulin, it's the pancreas [wikipedia.org].
I'll be nice and assume that was just a brain fart, as otherwise you seem to have at least a rough idea what you're talking about. ;-)
Re:No tracking necessary (Score:2)
you know when you liver is overworked producing insulin
Insulin is actually produced in the B cells of the Islets of Langerhans in the pancreas, not the liver. It has been shown that high blood glucose levels are in fact TOXIC for these B cells in some people (there is a genetic predisposition). It's one of the theories that helps explain type 2 diabetes, as your B cells end up dying over time insulin production decreases. It's not the whole story though
Re:No tracking necessary (Score:2)
Addiction is defined in many ways. One general version of addiction we use in medicine is:
Anything that produces physiological or psychological change and habit seeking behaviour when the substance is withdrawn is addictive. This is not a verbatim quote, it's from memory, but you get the gist.
By that token, air is addictive. So is water. So is all food, for that matter, including carbohydrates. To prove it
Tesco has changed Britain, but for the bettter? (Score:4, Interesting)
The local Tesco store near where my parents live has killed most local commerce and the next town (5 miles away) suffered greatly until a supermarket was given permission to build a large store on a town centre site there.
It is more correct to say that the hypermarket has changed Britain, but Tesco happens to be by far the most successful example. IIRC the statistic is that 1 out of every 3 GBP spent in the UK is spent at Tesco.
In their defense they say "Tesco tries to see off criticism by arguing that it gives customers what they want and keeps staff happy." You could easily turn that around any say that they reinforce customer habits by offering them offers on their usually consumed high value items. You rarely see offers on bread, milk and sugar. Rather more on your favourite desserts and higher margin goods. By suggesting that others purchased Turkey Twizzlers with Claret and then offering other Turkey Twizzlers offers on Claret rather sounds like moving everyone towards a common denominator to me. But one thing is for sure, it sure sells product! So if your goal is to survive in the continual drive to make consumers consume more and more (and at credit too - with the Tesco credit card, Tesco loans and with a Tesco banking service) then you're onto a winner by being just like Tesco.
Re:Tesco has changed Britain, but for the bettter? (Score:5, Insightful)
Re:Tesco has changed Britain, but for the bettter? (Score:2)
It used to be that people got married, and stayed married, one of the couple went out to work and the other stayed closer to home. This freed one of the couple to do perhaps the most important work: child rearing, social cohesion and re-provisioning.
Now get this. In towns and cities, people would walk to local shop
Re:Tesco has changed Britain, but for the bettter? (Score:2)
1 out of every 3 GBP? No. (Score:3, Informative)
The British GDP is about 1 Trillion [1.7 T USD]
That seems a far cry from 1 out of every 3 GBP. Unless you mean, maybe, actual currency passing thru the stores, at some point.
Re:Tesco has changed Britain, but for the bettter? (Score:2)
Re:Tesco has changed Britain, but for the bettter? (Score:2)
My favourite entry was:
Made me appreciate my job a little more, anyway.
So where's the problem? (Score:5, Insightful)
Tesco is a public company listening to customers, providing them with the goods and services they desire, and doing so for a fair price. Somehow to a group of people (and the OFT) that is improper. Since when did the "small shops" receive some type of right to exist and operate? If Tesco provided a better value for customers then that is where the customers will go.
I did the majority of my grocery shopping in Tesco while living in the UK. The stores were good, and I could even get home delivery. There were a couple small corner shops on the way home from the tube station as well. If I needed a loaf of bread, carton of OJ, or a pack of smokes they were a good quick stop. If stocking up my pantry/fridge for the week I'd go to Tesco. The small shops didn't have the products I wanted to buy.
Re:So where's the problem? (Score:2)
Maybe Tesco have improved since I switched, but for me they had their chance and they 'blew it'.
* Thus giving sufficient time for them to obtain any goods which were out
Re:So where's the problem? (Score:2)
Re:So where's the problem? (Score:2)
"Since when did the "small shops" receive some type of right to exist and operate? If Tesco provided a better value for customers then that is where the customers will go."
The "small shops" never received "some kind of right to exist". But it is important to keep in mind that it may be some kind of tragedy of the commons [wikipedia.org], where the people will be better with the small shops, but see more value (individualy) at the big ones.
Re:So where's the problem? (Score:2)
The joys of livinng in North America. When I have lunch today I will take a great deal of satisfaction in remembering that my refrigerator is probably bigger than the average apartment in London...plus I can have pizza delivered to my home. D
Re:So where's the problem? (Score:2)
Re:So where's the problem? (Score:2)
I chose a flat that came with an almost US sized refrigerator just for that reason. The washer/dryer were still a combined unit that could almost wash/dry a pair of jeans in a day, but my refrigerator was great.
I also spent 2 years up in Scotland. There I had one of the Lillipuian friges - such things are not fit for a uni dorm room, much less a real kitchen.
retail marketeer's wet dream (Score:4, Funny)
"Smedley, there's a customer in aisle 7 with a weakness for cream filled donuts - jerk him over to aisle 3 quick!"
Re:retail marketeer's wet dream (Score:2)
"Nerds with video game shirts, send'em to the chip and candy section, roll out 2 carts of doritos!"
Tesco = Advanced Commercial Democracy (Score:3, Interesting)
Although non-loyalty card users still count at Tesco (all retail is a type of democracy in that people vote with their pocketbooks), I'm sure that the product choices of loyalty card users are far more influential with Tesco and thus with suppliers. In that regard not having a loyalty card is like not having a voter registration card.
Some might argue that voting should be anonymous, like political democratic elections, and perhaps it should. Yet non-anonymous voting provides valuable information -- e.g., Tesco might notice that, for example, people who buy lots of hot soups in the winter don't buy high-sugar fizzy drinks in the summer or some other correlation that is only observable if you can know that shopping basket A and basket B (6 months later) represent the same voter. These long-term correlations aid in both store assortment planning and forecasting.
Re:Tesco = Advanced Commercial Democracy (Score:2)
There is a large assumption here, which is that only the customer who was issued the card is the person that ever uses the card, which is not true. Especially when said cards have incentives like "points" that can
Why store-level aggregate data isn't good enough (Score:3, Informative)
Card borrowing does skew the data, but how high is the actual frequ
The difference (Score:2)
Re:Tesco = Advanced Commercial Democracy (Score:2)
I think its more like having your own KGB agent to track your movements.
I shop in Tesco. I do not have a loyalty card. I pay cash. I also shop in Asda (Walmart), Netto and Safeways/Morrisons.
Since my local Safeways became Morrisons, the prices have crashed, but the choice has become very "northern" (Mushy peas and black pudding are easy to find, while plantains and Greek bread have gone). I complained that they no longer sto
Membership stores do something similar? (Score:2)
Re:Membership stores do something similar? (Score:2)
You have to wonder? Why not use both brain cells: Of course they do!
A good lesson, a desired info (Score:2)
However the important point in the article isn't the database, it's the fact that a company is becomming big N
Interesting Question (Score:2)
Can a Database Customer Loyalty Change a Society? Certainly [google.com].
By driving me crazy? yes (Score:4, Funny)
Re:By driving me crazy? yes (Score:2)
Fight it! Fight it! If you do THAT then they win! You can be strong! I know you can! Just take it one day at a time!
Re:By driving me crazy? yes (Score:2)
Anyone here ever read "Jennifer Govenment"? (Score:3, Informative)
Anyone here ever read Jennifer Govenment [maxbarry.com] by Max Barry?
It's a crime drama/thriller set in a future where People take the name of the company they work for as their surname (John Nike, Ken Wal-Mart, etc.); and customer loyalty cards and brand recognition inpsire riots, war and murder.
I read it the same month I read Farenheit 451, (which might be the single best book I ever read.)
*THAT* was a fun month for paranoia, I can tell you.
All y'all that haven't read those two books need to go out and do so IMMEDIATELY. Thank you, Public Library for having them on the shelves.
Re:Anyone here ever read "Jennifer Govenment"? (Score:2)
Anyone here ever read Jennifer Govenment by Max Barry?
Yeah, it seemed somewhat contrived - slaughtering customers to increase product demand? And anyway, how many people named John work for Nike?
Re:Anyone here ever read "Jennifer Govenment"? (Score:2)
Good point - I have to say that to some extent, I agree with you. I mean, there's quite a contrast between Jennifer Government and Farenheit 451. I don't want to pick on Mr. Barry ('cause this is only his second book), but in my opinion, he relies a bit too much on swearing for dialog (that's what I hate about Elmore Leonard), the characters are kinda flat and it really doesn't take long at all to turn into a standard crime thriller. Despite all that, though, he still shows promise in that the concept is in
Max Barry anyone (Score:2, Interesting)
In that book, there are 2 major customer loyalty programs with all big brands participating in one of them. The world is run by the corporations, employees take on the name of their employer and the police is now a publicly owned security firm (participating in one of said programs) which only investigates crimes if they can bill the investigation (on the victim of course)
Affinity cards are still branding (Score:2)
Affinity cards are part of this branding. They exist to remind the customer of the shop, and may limit the customer choices due the inconvince of carrying multiple cards. For the purpose of data collection such cards are hardly neccesary, as m
Not Saving Any Money (Score:3, Interesting)
Tick tock, tick tock (Score:2)
(glancing at watch) I'm still waiting...
--Rob
Privacy Tax vs. Perceived Savings (Score:2, Interesting)
I am not usually the tinfoil hat type, and these people tend to go a little overboard with some of their logic (especially on the RFID side) but most of their information about the loyalty card programs I have found to be true.
Having worked for a grocery chain for 8 years and most recently a pharmacy chain for 12 years, I am very familiar with the pricing and promotion models used in both
Ask to use the store card. (Score:3, Informative)
Re:British Society Tracking Database (Score:2)
Re:British Society Tracking Database (Score:5, Informative)
Re:tracking devices (Score:2)
Keep shopping!! (Score:2)
In other news, authorities say that spatula-related terror incidents may be on the rise. Be vigilant. And keep shopping.
Your time... is my time.
Re:tracking devices (Score:3, Insightful)
What they want is the BUYING PATTERNS... and they get this IRRESPECTIVE of your identity. The fact that people who buy Milk on Tuesday, also buy Boneless turkey thighs on Saterday is interesting. Who those people are is not terribly interesting.
This is why, chains with loyalty cards PRINT your discount
Re:tracking devices (Score:2)
"Data Protection Statement
We would like to use your details from the application form , plus details on how you use your Clubcard and what you buy in our stores, to:
Help manage Tesco Clubcard and improve the way we run it
Understand our customers' shopping habits to improve our service
Unless you indicate otherwise, contact you with offers and information about products and services of interest to you and your family
We will share your details among Tesco companies at home
Re:tracking devices (Score:2)
So their "data protection" is that basically they can give your personal data (from the application form, you know, the one that says NAME, ADDRESS, PHONE NUMBER and usually other things like OCCUPATION, MONTHLY INCOME) with anyone they choose.
Read it again. They share your info with Tesco companies and businesses that process the info for them, which apparently means printers. No mention of sharing your home address with strategic partners or anything.
Re:tracking devices (Score:2)
Re:tracking devices (Score:2)
Pssst! here...kid... wanna earn $5? Ummm never mind, I guess Michael Jackson already thought of that one...
Re:Whats the news? (Score:4, Insightful)
It's news because it's turning into a giant datawhorehousing these days...
Re:ISO9000 series (Score:2)
Try living in a country in which the customer is not king. It is heavenly.
Re:What if Wal-Mart (Score:3, Insightful)
Regretably, the fact that Wal-Mart doesn't use loyalty cards is one of the few admirable things about them.
Re:Echoes of WalMart and Microsoft (Score:3, Informative)
What's the point? Take the following example: