Dunnhumby Clive Humby on Tesco ClubCard and Customer Loyalty Program

Clive Humby of Dunnhumby on Customer Loyalty

Rebecca Liggero talks to Dunnhumby Clive Humby  as he talks about Tesco ClubCard  and Customer Loyalty Program.

Tesco Clubcard is the loyalty card of leading British supermarket chain Tesco and operates in the United Kingdom, Ireland, Czech Republic, Hungary, Poland and several other countries, and in the UK market in particular has been highly successful, with over 15 million members as of 2010.

Why do you have loyalty cards in your retailer?

“Because you don’t know who your customers are. This way you can join their shopping basket together and see: what they like buying, when they like buying it and what they’re doing. And it’s very powerful for the retailer and powerful for their suppliers,” Humby said.

During the European iGaming Congress 2014, Humby said that we should not expect a loyalty program to inspire such loyalty and that the customers should get loyalty from you, not the other way around- a misconception: “Loyalty cards don’t build loyalty.”

Humby left the audience with five main conclusions about loyalty programs from his presentation:

1) Loyalty is the wrong concept- it’s about offering customers something relevant

2) Customer motivations are the key to unlocking value- why are they buying something? To cook? To lose weight?

3) Big data is not a panacea; to be useful it has to be actionable (and not creepy!)

4) Social media is re-writing the rules for getting your message to land- through social media is how you discover your customers’ passions.

5) Future of brands is engaging with customers via their passions.

When it comes to the iGaming industry, Humby stressed the importance of trust and reminded the audience that iGaming customers are doing what they are doing for fun and not for necessity; therefore operators can engage to a higher degree with their customers than in the retail world.

Watch the video to hear more from Clive Humby.