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5 Aside from the obvious monetary rewards, Clubcard enables Tesco to really listen to its customers and respond to their needs. From launching new ranges like Healthy Living to sending out 8m personalised rewards statements and continually improving the experience of shopping in stores, Clubcard helps Tesco keep its loyal customers happy. Edwina explains why Tesco Clubcard is so popular among customers: " Distilled down to its simplest level, if you shop regularly at Tesco, then every time you shop you're getting 1% off your basket for free. This is purely the reward, money off; it's not to do with the vouchers. Then there's another layer of offers. Why wouldn't you want one?" From a honeymoon to a university course and a funeral Some businesses have taken the wrong attitude to rewarding customers, which has tainted perceptions of loyalty programmes. Like the airline programme where you collect points for years to discover that they can only be redeemed out of season, or the vouchers expire too soon. In contrast, Tesco's Clubcard vouchers are redeemable for two years and many Tesco customers take pride in collecting their points to exchange for coupons and treats. As well as simply cashing in their quarterly vouchers in a Tesco shopping trip, Clubcard customers can exchange points for four times their value with special Tesco Deals. Vouchers cover the whole spectrum from holidays to day trips from magazine subscriptions to university courses from car services and MOT to Airmiles and jewellery. You can even pay for a funeral with Tesco Clubcard points. Today Tesco Deals is one of the largest sales agents for theme park tickets in the UK. It issues £ 31m in vouchers every year to 1m Clubcard holders. In 2002, Legoland Windsor opened for one night exclusively for Tesco shoppers with a firework display. The Moneysavingexpert forum, a chat room for frugal British consumers keen to swap money saving tips, is buzzing with stories of happy Tesco shoppers who've cashed in their Clubcard points. One woman who calls herself TIGS writes: " I have had two holidays in Disneyland at Christmas thanks to the Tesco Clubcard deals. I would have never been able to afford to take my kids to Disney if it hadn't been for my Clubcard points." secret weapon

6 The Tesco Clubcard programme has captured the imagination of the British public. Tesco also rewards green consumer behaviour such as bringing your own shopping bags, recycling mobiles and printer cartridges with green Clubcard points. One British couple recycled enough old cans, plastic carrier bags, mobile phones and ink- jet printer cartridges to save hundreds of points to pay for their honeymoon. Inevitably, there are some Tesco customers who get a little carried away... There was The Great Roast Beef Stampede when one Tesco customer bought 10,148 Birds Eye Beef Dinner frozen meals. Or the Banana Man of Worcester, scientist, Phil Calcott, who spotted an opportunity to buy half a tonne of Tesco bananas in return for extra Clubcard points. He told The Times: " I've always fancied standing on the street and seeing people's reactions when you give them something for free. Children in the street now shout Banana Man when they see me... I am waiting for Tesco to do a special offer on pineapples because I am rather partial to them." A contract of loyalty Customers today enter into a contract with businesses. Most don't mind exchanging necessary information providing they get something in return. If it means you're using the data to listen and then continually improve and refine your service, personalising it for them, then that's fine. Clive believes there is nothing more frustrating for customers than companies who collect data but do nothing with it. " With data comes social responsibility. The worst thing a business can do is collect data and not use it." We've all been there. You call your bank's call centre. Following instructions from a robotic, automated service you carefully type in your account number and sort code, you listen to a myriad of options before pressing a number to connect you to a human being. By this point you may have been on the phone for ages. And what's the first thing the customer service representative asks when you're finally connected? For your account number, your sort code - and you're forced to list your details all over again. Clive continues: " I think we resent it when the computer systems aren't joined up. We forgive anyone for not knowing us, but if any colour you like as long as it's any colour you like With data comes social responsibility