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Tesco head: Retailer will focus on targeted marketing to drive revenue and footfall

28 Sep 2012 9:38 BST Back
Tesco head: Retailer will focus on targeted marketing to drive revenue and footfall
DMA News

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Tesco is continuing its move away from money-off vouchers towards targeted offers shaped from their customers' Tesco Clubcard data.

In an interview with The Times Janet Smith, Tesco head of group loyalty, acknowledged that money-off vouchers are still good for driving footfall, but "are not as effective as more target couponing," which encourage customers to stay loyal through money off shopping list staples rather than vouchers to trial new products.

In addition, the company are looking to further leverage Clubcard data to use local demographics to shape store layout and the ranges that they stock.

Gerard Doyle, CEO of voucher code and daily deal site DiscountVouchers.co.uk, believes these moves are recognition by the brand of loyalty fatigue. "If you continue sending one product to all your users, eventually you’re going to alienate those users and they'll lose interest in your offering," he says.

"Consumers are fed up with the sheer volume of irrelevant offers they receive from the couponing and voucher code industry every day. Tesco has recognised that," he adds.

"We invested significantly to improve our data to allow us to personalise our e-newsletters. It brought in additional revenue for our merchants and provided our customers with vouchers and deals that they are actually interested in receiving. Tesco has got one of the best customer databases in the business, so they know they can re-invigorate loyalty by using their data to provide more targeted offerings," he concludes.

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