Tesco

Question 1:

Tesco.com has been able to achieve success online by using customer data from clubcard the data collected ensure that customers were locked in to continue to purchase their product form tesco.com.

Tesco.com uses this strategy to convert visitor to regular buyer ( Approach 1)

“Trigger event 1: Customer first registers on site (but does not buy).

§  Auto-response (AR) 1: 2 days after registration e-mail sent offering phone assistance and £5 discount off first purchase to encourage trial. Trigger event 2: Customer first purchases online.

§  AR1: Immediate order confirmation

§  AR2: 5 days after purchase e-mail sent with link to online customer satisfaction survey asking about quality of service from driver and picker (e.g. item quality and substitutions).

§  AR3: Two-weeks after first purchase - Direct mail offering tips on how to use service and £5 discount on next purchases intended to encourage re-use of online services.

§  AR4: Generic monthly e-newsletter with online exclusive offers encouraging cross-selling

§  AR5: Bi-weekly alert with personalised offers for customer.

§  AR6: After 2 months - £5 discount for next shop

§  AR7: Quarterly mailing of coupons encouraging repeat sales and cross-sales Trigger event 3: Customer does not purchase for an extended period

§  AR1: Dormancy detected – Reactivation e-mail with survey of how the customer is finding the service (to identify any problems) and a £5 incentive.

§  AR2: A further discount incentive is used in order to encourage continued usage to shop after the first shop after a break.”

Chaffey, 2011 page 520

(Approach 2)

The second approach is providing customers with convenience and value such as:

·         Tesco.com also has improved customers experience online, this has reduced time for first time buyer from 1 hour to 35 minutes on line

·         Tesco.com also offers intangible product such as forming partnership with eDiet and iVillage and offering the services to their customers.

·         Providing customers with cheap telephone services and services broadband.

2.)  Our product which is “streambox” can benefit from the first approach which tesco.com uses these steps could be use to make any visiting customer to a regular customer.