TESCO - The Customer Relationship Management Champion

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"Our mission is to earn and grow the lifetime loyalty of our customers."

- Sir Terry Leahy, Chief Executive Officer (Tesco), quoted in Tesco's 1998 Annual Report.

"They (Tesco) know more than any firm I have ever dealt with how their customers actually think, what will impress and upset them, and how they feel about grocery shopping."¹

- Jim Barnes, Executive Vice President of Bristol Group, a Canada-based Marketing Communications and Information firm, and a CRM expert.

"The whole philosophy is in balancing the business in favor of the customer. That comes down to a mixture of company culture and customer insight."²

- Crawford Davidson, Director (Clubcard Loyalty Program), Tesco.

Every three months, millions of people in the United Kingdom (UK) receive a magazine from the country's number one retailing company, Tesco. Nothing exceptional about the concept - almost all leading retailing companies across the world send out mailers/magazines to their customers. These initiatives promote the store's products, introduce promotional schemes and contain discount coupons. However, what set Tesco apart from such run-of-the-mill initiatives was the fact that it mass-customized these magazines. Every magazine had a unique combination of articles, advertisements related to Tesco's offerings, and third-party advertisements.

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1] 'How a Supermarket can be a Corner Shop,' www.crmguru.com, January 23, 2003.

2] 'How a Supermarket can be a Corner Shop,' www.crmguru.com, January 23, 2003.

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