ACC Problem 1 Essay

Submitted By KnightMB301
Words: 695
Pages: 3

ACC 307 CH. 1 Homework Problem 1.6
Tesco with its Clubcard program is able to grab some basic information upon customers signing up for the card. This basic information would likely include:
Tesco can then use the Clubcard to track down more information such as:
How often you shop at Tesco
What times you shop at Tesco
How much you spend on average
What you purchase most frequently
What store locations you shop at
However, Tesco is gathering much more info from outside sources. “Tesco is quietly building up a profile of you, along with every individual in the country – a map of personality, travel habits, shopping preferences and even how charitable and eco-friendly you are. A subsidiary of the supermarket chain has set up a database, called Crucible, that is collating detailed information on every household in the UK, whether they choose to shop at the retailer or not.(Tomlinson, 2005)”
“Together, Crucible and Zodiac can generate a map of how an individual thinks, works and more importantly, shops. The map classifies consumers across 10 categories: wealth, promotions, travel, charities, green, time poor, credit, living style, creature of habit and adventurous.(Tomlinson, 2005)”
Tesco has been able to motivate over 22 million customers to sign up for the Clubcard because of the amount of benefits that it offers:
“ A. Clubcard Fuel Save 1. Every £50 = 2p off a litre of gas 2. You don’t have to spend £50 all in one go 3. The more you shop the more you save a. £100 = 4p off per litre b. £150 = 6p off per litre c. £200 = 8p off per litre d. And so on B. Coupons 1. Tesco selects coupons to reflect your shopping preferences 2. Tesco delivers a variety of extra Clubcard points and many saving offers 3. Tesco will surprise you with an extra special coupon to reward your loyalty 4. Use coupons online or in store. C. Scan as you Shop 1. Track your spending as you go 2. No more unloading at the checkouts 3. Check out faster at the Scan as you Shop payment area D. Clubcard Boost E. Christmas Savers F. In-Store Wi-Fi G. Tesco Bank (Tesco, 2014)”

1.6.c Tesco can accomplish many things with the data that it collects. Tesco uses customized coupons to give a more personal approach to the use of the Clubcard. By sending out these personalized coupons it is more likely that the customer will return to Tesco rather than go to a different company. Tesco is also able to keep a more accurate track of what is and is not selling. This will allow Tesco to better predict when to stock up on items and how much is needed in stock. Tesco can also accomplish better sales advertisements and campaigns by tracking customer purchases