Major supermarkets' divergent loyalty strategies
Interim results from Tesco this week have showed the company regaining some of the ground lost to its major rivals over recent months as its 'double Clubcard points' initiative appears to be helping it boost sales by reinforcing customer loyalty.
The effectiveness of such tools has, however, been rubbished by Asda chief executive Andy Bond who this week suggested loyalty cannot be bought through the giving away of points or money-off vouchers. Instead, he believes customer loyalty is chiefly earned through increased transparency.
Asda is seeking to bump-up its transparency levels through initiatives such as installing webcams on the premises of some of its suppliers thereby providing shoppers with a view into where its chickens are reared and the working conditions in the factories where its clothing products are produced.
The supermarket is also launching an initiative that could earn customers up to £100,000 if they devise an idea that saves the company up to £2 million. Asda is also planning to provide its 18,000 strong customer panel access to some of its products before they reach its shelves.
Such a panel is also used by Tesco, and is under the control of its Clubcard operator Dunnhumby, which suggests this is at least one tool that both rivals agree helps them engender greater loyalty from customers.
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