No matter where you live in the world; the price of groceries have gone up and shoppers are more price sensitive than ever. That means CPG retailers are focusing on retail selling prices – intensely competing with each other to offer the lowest prices that represent value for money to shoppers, within the context of the overall customer shopper promise.
Strategically segmented and targeted discounts help to ensure that price strategies do not erode shopper loyalty and devalue the categories you compete in.
For Tesco; since 2019, this means offering specific discounts on selected product categories for Clubcard loyalty card holders. This remains a key future focus. All Tesco shoppers are already familiar with Tesco’s ‘Low Everyday Prices’ on 1000 products – as well as category specific price promotional discounts. So, in addition to these, Clubcard holders get something extra. They can benefit from exclusive special Clubcard prices.
In this way Tesco gets ‘something for something’. Tesco’s overall value for money proposition is enhanced and shoppers feel rewarded for their Clubcard participation. Creating loyalty card specific discounts both drives shopper loyalty and further reinforces Tesco’s price / value shopper proposition.
Read the BBC’s perspective: Loyalty cards: How a big yellow label influences what we buy or browse Tesco’s website