Tesco Clubcard Plus launches – here are the full details
Martin: ‘Tesco has seen the power of Amazon Prime and decided it wants a taste of that’
Martin Lewis, founder of MoneySavingExpert.com, said: “Almost certainly Tesco has seen the power of Amazon Prime and decided it wants a taste of that.
“One set of US research showed Prime members tend to stick with Amazon, and are eight times less likely to shop elsewhere in a session. This means they spend far more money. In fact, it’s likely Prime would be profitable for Amazon even without the subscription fee, because it engenders so much more customer stickiness.
“And that stickiness is what Tesco wants. It’s likely this is why it’s charging the subscription fee, as it’s at the core of the psychology behind it. If you can get people to sign up, their behaviour changes. They start to think: ‘As I’ve paid for it, I should use it’, which is what keeps them locked in.”