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UK Grocery Retailing, 1987-2005 Tesco’s Growth Strategies Why do retailers invest in loyalty programmes? But if everyone does the same thing, isn’t it a zero sum game? To underpin the success factors, we conducted some research … You are what you buy – innovative customer segmentation Loyalty programmes are costly Clubcard’s cost effectiveness (1/3) UK Online Retail Grocery Market, 2005 T VS S T First mover advantage Switching cost Shopping basket (used by 92% of shoppers) Customer management (touch strategy) Convenient and efficient site design Offline advertising in store for Online offer Cl