Clubcard is no match for US retailers’ offers

The article on Tesco’s challenge to Wal-Mart in the US (MW, June 22) overlooked one of the key factors to Tesco’s UK success with Clubcard: direct mail. The Clubcard has succeeded by offering customers targeted promotions in quarterly mailings, thus giving them a reason to return.

But in the US, more than 70% of grocery retailers already implement in-store targeted marketing through coupons printed at the checkout, providing high-value offers based on what customers buy, rather than giving points on their card. So instead of a quarterly mailing providing a reason to return, every time a customer shops they leave with a relevant coupon and a reason to revisit.

Improving US customer’s loyalty through the Clubcard scheme will be more challenging for Tesco, as it will need to differentiate itself from retailers such as Kroger Co, Alberstons and Myers, which already use frequent targeted marketing to maximise customer loyalty with great success.

Sheridan Thompson,

Client services director,

Catalina Marketing,

Oxford

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here