The accuracy of customer reward program as loyalty marketing tool

Abstract: Today Tesco is not only the UK’s largest grocer, but also the world’s most successful internet supermarket (Humby and Hunt, 2004, pg 1). The Tesco Clubcard is widely considered to be a pioneer and success story in loyalty marketing, helping to propel Tesco to be the number one supermarket retailer in the UK (Tapp, 2005, pg 176). This thesis consists of a literature review of previously publish materials and the use of a quantitative survey. The aim of the study is to uncover and identify the value of the Tesco Clubard customer reward program and determine how significant it is in creating true customer loyalty. The findings of the study revealed consumers place greater importance upon store location, value for money and product range rather than loyalty card schemes, in-store magazines and vouchers.