Tesco Clubcard/Vouchers/Points/Deals - Post All Questions Here

koru

Felicity wrote:

I have a marketing background myself and fully understand the value of creating customer loyalty in such a competitive environment, but 'buying' customer loyalty at such a high price seems a little strange.

Precisely. It isn't the clubcard/deals concept that is puzzling; what's difficult to explain is why deals tokens are worth SO MUCH more.

Another puzzle is why Tesco's deals are so much better than Nectar. Tesco may be a little bit bigger than Sainsburys, but if you add in BP and the other Nectar points issuers, I think the size must be similar, so I can't see why Tesco would get bigger volume discounts than Nectar.

koru

markmc999 wrote:

Also having a poke around Tesco.com the other day it wouldnt suprise me if a lot of there offers are things that companies cant shift (books for example when I was looking). It makes people think they are getting a bargin (75% discount) while also shifting massive amounts of spare stock

I am sure some of the offers are like this. Often, "special offers" are things you wouldn't want to buy, or they are prices that you can, in fact, obtain elsewhere quite easily.

But what's unusual about tesco clubcard is that many of the offers are things you really would buy, at full price, anyway. Like MOTs - you don't have a choice whether to have one, and I don't think any garage offers them for less than about £30. Or like Jorvik tickets - you can get 10 or 20% off, easily, but no other way can you get 75% off.

gwapenut

That's an interesting point. I've often wondered how many of the clubcard deals are things you would normally pay full price for.

eg. It is relatively easy to pick up tickets to Chessington etc at half price, through soft drinks promotions or lastminute.com. So from my point of view, clubcard vouchers used for Chessington are only worth 2x face value. And presumably Tesco can negotiate much better prices than the man on the street, so it will cost them no more than 2x face value and probably much less

An MOT can often have a 25% discount if - as with the clubcard deal - you are not fussy about which garage does it. So they are only worth 3x for this.

Which brings me onto my question I always thought that it was pointless redeeming clubcard vouchers for hotel rooms, as these can often be found at 50% promotions. However, I am just assuming that you are not enttitled to use the vouchers for these discounted rooms.

Has anyone successfully used - or been refused - payment of a discounted / promoted room using clubcard vouchers?

Also, someone commented that the value in MFI may go up if Tesco is the mystery bidder. I would have thought the reverse is true as Tesco vouchers spent in their own stores are only worth 1x face value...

Lady_K

Got a form from tesco to fill in for RAC membership. It seems very flimsy even when its folded its all floppy. It says fold over seal and post but I didnt know whether to put it in a second envelope. Has anyone else done this?

Do you think posting by recorded delivery is ok or should I get special delivery? I know its freepost but if it gets lost they don't replace them

Seakay

Has anyone else any info about how this works?

I bought Clipper coffee and Tesco ownbrand soya milk yesterday, both organic products, niether showed as organic on my receipt.

Asked at CS and they said that double clubcard points would be added in November.

Phoned Clubcard today and they said points would be added in 3 weeks, but could not explain how the organic items would be identified as they are not listed as such on my receipt. They said that the till listing should be queried instore, i said that it had been and staff insore said that they cannot do anything about points and do not have access to the computerised tills to make alterations. CS said this seemed very silly.

Basically, I have to keep all receipts gained during the 2 week promotion, write all organic purchases onto it, ,ring Clubcard CS in three weeks and see if the points have been added, guess if the right number have been added, query the amount if I think it is wrong and hope that they believe my version of what my purchases were!

Has anyone else come across this problem, and if so, have they found a better way?!

AMO

Also remember that Tesco got where they are by entering markets through loss leadership. To ensure that when Nectar was formed, that people wouldn't stop using the Tesco loyalty scheme, it was in their interest to offer competitive offers.

Take Nationwide for example. How many people here know of Nationwide? Probably a few, but out of those, how many would use Nationwide as their first choice for MOTs?

Most people I know go any local garage for an MOT and then either use them or the main car dealer for a service.

How much do you think it would cost Nationwide if they approached Tesco and said that they would want to advertise through Tesco's marketing channels to reach all their customers? It would cost a lot. A heck of a lot.

Things such as the loyalty schemes help both companies. On the one hand, extra value is given to Tesco's loyal customers. On the other hand, Nationwide reaches all of Tesco's clubcard customers. Getting a customer into the store is the difficult thing and then selling the service. Once people have done it once, its much easier thereafter.

Tesco make a loss on these deals as does Nationwide. The loss to Nationwide however, is much greater.

Tesco ultimately want customers to continue to shop at Tesco to accumulate even more points to get hold of these awesome deals. This is where Tesco gets its money back.

And thus the cycle continues.

AMO

d.ylan

Don't forget the sheer amount of spending-habit data you are providing Tesco each and every single time you do (and dont?) use your card.

There is simply MASSIVE commercial value in this data.

Seriously, I find it hard to take in myself every single nugget they can drain out of this data, shopping habits, brand preferences, changes in habits during advertisements periods of specific brands showing effectiveness, market conditions, weather, christ even menstrual cycles of the country I shouldn't bet.

Being one of the largest and most pervasive supermarkets offers an unrivalled amount of data collection potential, and completely saturating the company allows the sheer number to indentify and account for even the smallest regional inconsistencies and anomalies, and capitalise on these. They really don't miss a trick, but that's what it takes to be in that position.

Just read the terms of the club card we signed up for, granted they may have changed since I signed up myself.

koru

d.ylan wrote:

Don't forget the sheer amount of spending-habit data you are providing Tesco each and every single time you do (and dont?) use your card.

There is simply MASSIVE commercial value in this data.

Seriously, I find it hard to take in myself every single nugget they can drain out of this data, shopping habits, brand preferences, changes in habits during advertisements periods of specific brands showing effectiveness, market conditions, weather, christ even menstrual cycles of the country I shouldn't bet.

Being one of the largest and most pervasive supermarkets offers an unrivalled amount of data collection potential, and completely saturating the company allows the sheer number to indentify and account for even the smallest regional inconsistencies and anomalies, and capitalise on these. They really don't miss a trick, but that's what it takes to be in that position.

Just read the terms of the club card we signed up for, granted they may have changed since I signed up myself.

This sets out a good reason why Tesco want to make their scheme attractive to customers. Are you saying that this means Tesco are probably taking most of the 'hit' for the cost of the deals?

But why would they want to make it 4 times as attractive to "spend" your points at Nationwide than at Tesco's own stores? Why not make the points worth the same in Tesco stores?

koru

AMO wrote:

How much do you think it would cost Nationwide if they approached Tesco and said that they would want to advertise through Tesco's marketing channels to reach all their customers? It would cost a lot. A heck of a lot.

I doubt they would pay £30 for each customer they get from Tesco, though. If so, why don't they offer £10 MOTs to everyone? Virtually everyone with a car would go to Nationwide.

Thanks everyone for the comments so far. I'm sorry if I seem like I am dismissing everyone's arguments. It's just that I had already thought of these points, and I don't think they explain why deals tokens are worth 4 times more than if you use the vouchers in Tesco. It is the EXTENT of the difference that I can't explain.

We either need to explain:

1 If the explanation is that the Deals companies (like Nationwide) are giving ridiculously high 75% discounts to Tesco, how can it make business sense to give SUCH a high discount, and why don't they give discounts remotely as high to Nectar or to anyone else? Sure, they give discounts, but not usually more than 25%. Tesco are a bit bigger than Sainsburys, but not that much bigger.

or

2 If the explanation is that Tesco is willing to spend 4% of its income attracting people to use their clubcard, why wouldn't Tesco spend that same 4% if you spend the points in Tesco's own stores? Why would they wish to make it 3-4 times as attractive to spend your points anywhere but Tesco's own shops?

I guess it is probably a combination of these two, so maybe Nationwide gives a 50% discount and Tesco pays double what the points are worth in their stores.

I would love to know what actually happens, though, if anyone has some inside info.

firespire

I think this is a question that a lot have wondered about.

Tesco deals are better than Nectar always, like the same magazines are 1/4 of the price in Tesco deals than in Nectar value.

The people offering the deals I doubt get the full value but I can't see them taking a 75% discount.

What is clear is tesco do seem to want to you to use the deals elswhere as they make it very attractive and are always sticking in deal leaflets with the statement.

To me the attraction is in getting the best value elswhere. If it was same money instore and for a treat then to me the scheme would seem less attractive ie. £1 voucher spend in Tesco same value elswhere no point in felling good about saving them to get a treat elswhere.

Maybe the accounting ballance sheet looks more attractive to shareholders if all store purchases are paid in money rather than having a percentage less because clubcard vouchers are used. They might put deals spent elsewhere in a different section. Higher store turnover maybe.
If you don't use the voucher for your Tesco shopping you wouldn't buy less they would just get the cash out of you.

If you don't wan't to save you can spend it in store at a lower value.