Tesco Case Study Context
Tesco, well known as Britain’s leading food retail group with a presence also in Europe and Asia has also been a pioneer online.
As this Tesco.com case study shows, retailer Tesco is generally recognized as the worlds largest online grocer and it has an annual turnover of £1 billion online in the UK and has launched in other countries, internationally and is diversifying into non-food categories. http://www.tescocorporate.com/plc/ In 2006/7, Tesco.com sales were reported to be sales up 29.2%, profit (pre-Direct start-up costs) up 48.5%;
• More details on online sales and non-food sales details are also provided in the main www.tescoplc.com/plc/ Today the tesco.com model operates in the UK, the Republic
For example, Tesco.com have a touch strategy which includes a sequence of follow-up communications triggered after different events in the customer lifecycle. In the example given below, communications after event 1 are intended to achieve the objective of converting a web site visitor to action; communications after event 2 are intended to move the customer from a first time purchaser to a regular purchaser and for event 3 to reactivate lapsed purchasers.
• 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