Making the Net profit
Since its launch, Tesco.com has achieved a 65 per cent market share in home grocery shopping and it is profitable, yielding &£12m in 2002. Turnover has more than doubled to &£447m during this period. This has been achieved through rigorous, measured and accountable marketing. As the judges noted, “Tesco is doing all the right things.”
Carrying on at your convenience
Following trials in the late Nineties, Tesco.com set itself the goal of becoming the number one online shopping destination. It identified that convenience is the key motivating factor for online shoppers; this has been embodied in the website, the delivery process and all communications.
The customer experience must also be consistent, as one bad incident can end the relationship. Throughout, Tesco.com has been customer-centric, using information gleaned from the Clubcard database to define services and marketing. A recency, frequency and value model has been built, together with a basket cluster classification to group similar customers together.
Marketing programmes developed with agency EHS Brann have been used to move newly registered shoppers towards the key stages in their life-cycle. Every stage in this process has been rigorously tested.
