What’s the point of loyalty points?

For reasons that are too complex to explain, I found myself being driven through the middle of Slough yesterday evening. A rare treat, you would have to agree. Slough boasts one of the largest Tescos I have ever seen. I clearly don’t get out enough because these Tesco Extra stores are a now a feature of many large towns and cities.

However, it wasn’t just the gleamingly large two-floor-ish-ness of this Tesco store that caught my eye. It was a rather aggressive message emblazoned across the front of the store. No, not Slough graffiti: this had been put there by management.

“Asda vouchers accepted here” it read (or words to that effect). It was alongside an equally pointed message: “Morrison vouchers accepted here”.

My eyebrows were raised with interest, whilst the other occupants of the car quietly wondered at my sanity at such interest in a supermarket.

What is interesting about the tactic, apart from its bare-faced cheek, is that neither Asda nor Morrisons have a loyalty scheme: both compete purely on price.

Tesco, who are offering double loyalty points this summer, have a three-pronged competitive spear, compared to Asda and Morrison’s single spear:

1. They are keenly priced on many lines
2. Customers are encouraged to join the loyalty scheme and then earn additional money-off rewards
3. Customers get further targeted offers for more savings from the loyalty scheme.

Oh, and of course, Tesco are also accepting vouchers issued by rival supermarkets. Neat. They are proving themselves a thoughtful and resourceful opponent.

Which makes me wonder why more companies don’t look at the value of marketing data?

Marketing data can be generated on purpose, eg through loyalty schemes or other devices, or may just be sitting on a file server unloved and unused. Marketing data often has a relatively low cost and a surprisingly high value – when it’s used properly.

Interesting place, Slough.