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The case describes the customer relationship management (CRM) initiatives undertaken by Tesco, the number one retailing company in the United Kingdom (UK), since the mid-1990s. The company''s growth and its numerous customer service efforts are discussed. The case then studies the loyalty card scheme launched by the company in 1995. It examines how the data generated through this scheme was used to modify the company''s marketing strategies and explores the role played by the scheme in making Tesco the market leader. The case also takes a look at the various other ways in which Tesco tried to offer its customers the best possible service. Finally, the company''s future prospects are commented on in light of changing market dynamics, the company''s new strategic game plan, and criticism of loyalty card schemes. The case is structured to enable students to: (1) understand the concept of CRM and its importance in deriving advantages in a highly competitive market; (2) study the nature of the retailing industry in the UK, particularly the evolution of Tesco as a leading company by the end of the 1990s; (3) understand the need for loyalty card schemes, their implementation, and the role of data mining and analysis in running such schemes successfully; (4) examine how the information gathered through CRM tools can be used to modify marketing strategies and the benefits that can be reaped through them; and (5) analyse the various issues companies need to address when devising a comprehensive CRM system. The case is aimed at MBA/PGDBA students and is intended to be part of the marketing curriculum.