TESCO - The Customer Relationship Management Champion

The Tesco story dates back to 1919 when Jack Cohen (Cohen), an ex-army man, set up a grocery business in London's East End. In 1924, Cohen purchased a shipment of tea from a company named T E Stockwell.

He used the first three letters of this company's name, added the 'Co' from his name and branded the tea 'Tesco.'

Reportedly, he was so enamored of the name that he named his entire business sco. The first store under the Tesco name was opened in 1929 in Burnt Oak, Edgware...

Commenting on the way the data generated was used, sources at Dunnhumby said that the data allowed Tesco to target individual customers (the rifle shot approach), instead of targeting them as a group (the carpet bombing approach).

Since the customers received coupons that matched their buying patterns, over 20% of Tesco's coupons were redeemed - as against the industry average of 0.5%.

The number of loyal customers increased manifold since the loyalty card scheme was launched (Refer Figure I)...