Retail Industry Trends and Challenges

The assignment requires you to analyze a list of scholarly articles related to retail management and customer behavior. You need to identify key themes, concepts, and trends emerging from these articles and summarize them in a concise paragraph. The focus should be on providing a comprehensive overview of the current state of research in this field.

Running head: COMPARISON OF CUSTOMER RELATIONSHIP MANAGEMENT IN
THE RETAIL SECTOR: CASE OF ASDA AND TESCO
Comparison of Customer Relationship Management in the Retail Sector: Case of Asda and
Tesco
Name of the Student:
Name of the University:
Author’s Note:

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Abstract
This paper deals with the CRM practices that are implemented in the retail sector in
United Kingdom and a comparison is undertaken with respect to the two organizations Tesco
and Asda. The main motive of every organization has been to earn additional profit and that
is only possible if the firms are able to retain their existing customers and bring in new and
potential customers in their customers base. Therefore, customer relationship management is
a customer based organizational strategy with the aim of increasing their profitability,
customer satisfaction and revenue.
There have been various products that have developed for the past few years and the
rise in the competition has led to the construction of new and innovative plans among the
researchers. It has been observed that customer relationship management has been one of the
main plans that have been established by various retail organizations in order to understand
the requirements of their customers and establish new and improved plans so that the
grievances of the customers can be resolved.
The analyses of the data that are gathered from the secondary sources with respect to
the two firms have effective CRM practices and therefore they have a good base of
customers. The retail sector has significant use of CRM and this system is essential in order
to create loyalty and satisfaction among the customers.

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Table of Contents
Chapter 1: Introduction..............................................................................................................4
1.1 Background of the paper..................................................................................................5
1.2 Problem Statement...........................................................................................................6
1.3 Research Objectives.........................................................................................................6
1.4 Research Questions..........................................................................................................7
1.5 Research Significance......................................................................................................7
1.6 Organization of the paper.................................................................................................7
Chapter 2: Literature Review.....................................................................................................9
2.1 Customer Concept............................................................................................................9
2.2 Customer Relationship Management...............................................................................9
2.3 Aspects of CRM.............................................................................................................12
2.4 Technological Consideration in the Implementation of the CRM strategy...................12
2.5 Strategy for the introduction of CRM............................................................................13
2.6 Planning for CRM deployment......................................................................................13
2.7 CRM in Tesco and Asda................................................................................................14
Chapter 3: Research Methodology...........................................................................................16
3.1 Introduction....................................................................................................................16
3.2 Research Onion..............................................................................................................16
3.3 Research Philosophy......................................................................................................16
3.4 Research Approach........................................................................................................17
3.5 Research Design.............................................................................................................18

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3.6 Data Collection...............................................................................................................18
3.8 Secondary Data..............................................................................................................19
3.9 Sampling Method...........................................................................................................20
3.10 Data Analysis Plan.......................................................................................................20
3.11 GAANT Chart..............................................................................................................21
Chapter 4: Data Analysis and Discussion:...............................................................................22
Chapter 5: Conclusion Recommendation and Future Work....................................................31
5.1 Conclusion......................................................................................................................31
5.2 Recommendations:.........................................................................................................32
5.3 Limitations of Study/Scope of Study:............................................................................36
Reference List and Bibliography.............................................................................................37

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Chapter 1: Introduction
With the advent of the new century the firms operating in the retail sector had to
undertake various infrastructural transformations as they required reorganizing their present
production methods. This alteration of the retail sector was the main reason for the
technological and organizational developments that led to the production of new and
innovative products and services that would improve the lifestyle of human beings. The
introduction of these innovative products are main factors for the rise in the competitive
forces that was doubled by the internationalization phase and leading to an increased number
of mergers and acquisitions among the firms. It has been observed that the main motive of
every organization has been to earn additional profit and that is only possible if the firms are
able to retain their existing customers and bring in new and potential customers in their
customers base(Zhang, van Doornand Leeflang 2014). Therefore, customer relationship
management is a customer based organizational strategy with the aim of increasing their
profitability, customer satisfaction and revenue. The mechanisms that are inclusive of this
purpose of the business are the storage, capture and evaluation of the customers along with
the internal process information. The functions that assist this aim of the business are
marketing, sales, customer service, professional development and compensation. The
technologies that assist the customer relationship management initiative must be included as a
segment of the strategy that is customer centric(Fernie 2014). There have been various CRM
initiatives that have failed as they were restricted to the installation of the software without
aligning the software with the strategies that are customer centric. This is the first chapter of
the paper and therefore it establishes an outline of the general structure of the study that
includes the problem statement, the research objectives, hypothesis and the research
questions that will be helpful for the completing the study.

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1.1 Background of the paper
The advent of competition with the retail industry has expanded at a rapid rate over
the past few years in United Kingdom. This has mainly been due to the outcome of retail
industry being one of the most significant sectors globally. The desire for new and improved
products and services has revolutionised the retail industry as the organizations are focused
on manufacturing new and improved techniques that will enhance their revenue and will even
restore their customer base.
There have been various products that have developed for the past few years and the
rise in the competition has led to the construction of new and innovative plans among the
researchers. It has been observed that customer relationship management has been one of the
main plans that have been established by various retail organizations in order to understand
the requirements of their customers and establish new and improved plans so that the
grievances of the customers can be resolved(Armstronget al. 2014). It is the main function of
the firms to resolve the complaints of the customers and the firms who resolve these
problems faster are the ones who are more competitive in the market.
Due to the rising patterns globally, retail sector firms have expanded their business
worldwide and have established competition within the retail sector. Therefore, as a remedy
customer relationship management has become a mechanism for every firm in order to utilize
the competitive edge over one another. The creation of customer satisfaction and value is at
the very core of the modern era of marketing practice and thinking. The organizations that
have an image for giving out increased level of customer satisfaction with respect to doing
things in an effective manner than their rivals have been observed as having a better customer
relationship management(Sutton-Brady, Kamvouniasand Taylor 2015). Therefore, the
employees functioning in these firms have knowledge about the connection among their jobs
and the level of customer satisfaction.

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The comparison of the customer relationship management can be very well
understood by undertaking a comparison among Tesco and Asda, two of the renowned retail
organization that functions in United Kingdom. It has been observed that the two firms are
very competitive and there are very less differences among their operational strategies.
Therefore, understanding their customer relationship management will be helpful in
understanding the CRM in the retail sector in United Kingdom.
1.2 Problem Statement
With the advent of higher extent of competition in the retail industry, the firms have
tried to influence the consumers with the help of quality products and a variety of products,
even though it has been observed that there has been loss of some customers due to the
variations in their preferences, tastes etc. It has been observed that even though there have
been attraction of new customers but most of their customers have the habit of purchasing
various products from different firms. It is due to this factor that the firms are continuously
trying to improve their product quality and prices so that the customers are attracted towards
their products(Carlson, O’Cassand Ahrholdt 2015). The maintenance of the quality of the
product is influential for the restoring the satisfaction level of the customers. Therefore, it is
important that CRM is maintained by every organization in order to maintain their
competitive edge and retain their customer base. It is therefore due to this factor that analysis
of the CRM initiatives of Tesco and Asda is undertaken in order to undertaken what impact
CRM has in the retail sector.
1.3 Research Objectives
This paper is being constructed in order to gain an idea about customer relationship
could have an impact on the level of customer satisfaction by using Tesco and Asda in United
Kingdom as a case study. The distinct objectives and aims of the papers were to investigate
the following:

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 To discover the Customer Relationship Management practices of Tesco and Asda
 To investigate the degree of customer satisfaction of the CRM practices in the
chosen region
 To suggest the significant factors that is in association to the CRM practices for
the customer satisfaction in the retail sector.
1.4 Research Questions
The research questions with respect to the research objectives are discussed as follows:
Q1. How does the customer observe the degree of CRM practices in Tesco and Asda?
Q2. How do the customers rate the degree of customer satisfaction in Tesco and Asda?
Q3. How the staffs of Tesco and Asda do observe the effect of CRM practices with respect to
the customer satisfaction?
Q4. Do the consumers have any recommendations in enhancing the CRM practices in Tesco
and Asda?
1.5 Research Significance
The undertaking of the research will be influential for the retention of consumers and
a development in the customer satisfaction understanding with the help of advanced
technologies with respect to CRM and product and service qualities. The paper will disclose
the level of CRM and its impact on Tesco and Asda while functioning in the economy.
1.6 Organization of the paper
The paper is structured in a precise manner with the introduction chapter providing an
insight over the topic. Chapter 2 of the paper comprises of the literature review where the
analysis and the outcomes gained by other researchers with respect to this theme are
discussed. Chapter 3 comprises of the research methodology that discusses about the

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structure that is required to be followed in order to analyze the data. Chapter 4 undertakes the
data analysis and discusses over the topic and finally the last chapter is the conclusion where
the summary and the end result of the paper is discussed.

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Chapter 2: Literature Review
The review of literature helps the researcher to recognise the differences and the
similarities among the previous and the current studies along with the probable contributions
to the paper that is being constructed. This segment of the paper analyses the precise and the
associated literature of the paper and then connects it with the present paper. It is inclusive of:
2.1 Customer Concept
The idea of customers and for that matter the consumers have grown up along with
time. The philosophies with respect to the customers have transformed with the help of the
manufacturing concept time to the communal marketing period concept. Conversely, with
respect to this understanding regarding the changes in the consumers has mainly been due the
knowledge that the consumers play a significant role in the firm. Before the year 1960, it was
predicted that the customers consumed everything that was manufactured and there were no
crucial ingredient in the production strategy(Soet al. 2016). The vital issue came into
existence with the advent of globalization and liberalization. In the mean time, the
organizations have understood that it is economical to sustain their existing customers rather
than trying to bring in new customers. Therefore, the CRM practice has been granted with so
much importance by most of the firms in the present economy.
2.2 Customer Relationship Management
Customer Relationship Management (CRM) is an innovative term that is looked upon
when consumer preference is explained in the modern firms,. CRM is the strategy of the
business that looks to gain knowledge, manage, predict and customize the requirements of the
firm’s potential and current customers. In the current competitive environment, the
discovering and maintain the customers is more complex. It is even economical to maintain
the existing customers that to look for new customers. It is due to this effect that the idea of
CRM has been constructed as a strategic method for the organizations to move ahead with the

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retention of the customers in systematized manner. It has been observed that CRM is more
than a electronically constructed software, but is business strategy that puts the customers at
the core of the business of the firms. The organizations that are performing properly in the
market have gained knowledge about the association of a satisfied customer and establishing
a long term profitable and sustainable strategies.
According to Zakariaet al.(2014), a flourishing CRM introduction will permit the
sales and marketing employees, the customer service to have a holistic outlook for their every
customer. This process in theory will help the organizations to make informed decisions and
establish cross selling and opportunities for up selling, computing marketing efficiencies and
deliver customized customer care. In the last few years, the word has expanded to surround a
more strategic process and the investment has been in billions of dollars globally in the CRM
practices and the services that have followed.
As explained by Juan Dinget al.(2014), a significant indicator of flourishing CRM is
the satisfaction level of the customers because in the long run, the customers who not
satisfied may switch towards another firm. The advantages that derive out of the satisfied
customers are on the other hand manifold. Frowet al. (2014) have given out instances that
stronger competitive situation of the firms with the availability of the satisfied customer leads
to the higher profits and market share. Therefore, customer satisfaction is a significant aspect
of the business associations and a tool of a successful relationship among the management
operations. The role performed by the customers in any organization is known properly and
thus cannot be over highlighted. It has been acknowledged that constructing a good relation
with the customers is important for the maintenance of customer loyalty. Hingley,
Lindgreenand Grant(2015) identified this statement by explaining that customer loyalty is
significant to the achievement of the firms and that the customer loyalty is an asset that is

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competitive in nature and is a way of expanding the retention of customers with the help of
collaborative and secured relationship among the sellers and the buyers.
A CRM that is successful always initiates with a business strategy, which influences
the transformations in the firms and their method of work that is assisted by the technologies.
The key issue here is the philosophy that is customer related that touches every aspect and
significantly every individual in the organization(Baker 2014). From the management to the
employees lay focus on the satisfaction of the customers and thereby create a mechanism that
motivates the functions of an organization. The organizations look to restructure their CRM
strategies from time to time in order to stay updated with the changing customer and desire
and time.
There exist a wide variety of CRM process that are very complex to simple. A simple
CRM can be the utilisation of a contact management software to a spreadsheet to keep notice
of the interactions with the customers. The most efficient method on the other hand is in need
of a comprehensive effort from the side of the organization in order to influence and retain
customers with the integration of the individuals, technologies, policies and methodological
strategies. They are in need of a cross functional method as no individual business unit can
efficiently carry out CRM on their own(Huang, and Rundle-Thiele 2014).
In the current years, the technologies of CRM have become easier to access and are
even economical for smaller firms as the technological solutions have become applicable at a
faster rate. There are a range of options that are available with the help of online and web
applications that does not need the purchase of software or their installation. However, a
subscription fee is only paid by the firms for its use. There are many small organizations that
make use of CRM technologies in steps that mainly initiates with the automation of sales

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force and call centre software. As the companies make use of this software and expand, they
gain knowledge about the features that can assist their business to move forward and flourish.
2.3 Aspects of CRM
It has been observed that there are mainly three aspects that have been laid out by
Tungand Carlson(2015), which can be introduced in the isolation from each other and they
are as follows:
Collaborative: It involves the direct interaction with the customers that are not inclusive of
the service and sales representative of the firm.
Operational: Support or automation of the processes of the customers that are inclusive of the
service and sales agents of the firm.
Analytical: This handles and evaluates the customer data for a wider range of intentions.
Every one of them has their unique quality and it has been observed that the
organizations in order to create a precise and proper CRM practice look into every aspect of
CRM so that the level of satisfaction among the employees can be attained.
2.4 Technological Consideration in the Implementation of the CRM strategy
The requirements that are related to the technologies in relation to CRM can be a complex
one and with a wider aspect. The main construction blocks are inclusive of:
 A database to maintain the information about the customer. This can be a database
that is distinct for CRM or can be an organizational data warehouse.
 The operational CRM is in need of customer agent assistance software
 The collaborative CRM needs the customer interaction methods like for instance the
website and the automated phone systems

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 The analytical RM requires the statistical evaluation of the software as well the
software that can handle any distinct marketing events and promotions.
 Every one of them can be introduced in a basic way or in a high end complex
installation.
2.5 Strategy for the introduction of CRM
There have been various commercial CRM software programs that are readily
available, which have differences in their approach towards CRM. Conversely, CRM is not
just considered as a technology, but is looked upon as a comprehensive method to the
philosophy of a firm in handling their customers. This is inclusive of the processes and the
policies, front of house customer service, marketing, training the employees and the
information management(Hamidand McGrath 2015). Therefore, it is significant that any
CRM introduction considerations go beyond the technology, towards the wider requirements
of the firms. The aim of a CRM strategy must look into the distinct condition of the
organization and the expectations and the requirements of the customers of the firm.
2.6 Planning for CRM deployment
Before founding the process of CRM, the organization requires to gain knowledge
about their methodologies of customer management and the behaviours and preferences of
the customers. In order to be effective a truthful manner, the system of CRM requires to
capture the data authentically in order to evaluate the data and make sure that the correct
individuals are monitoring it and that the information is ultimately exploited properly. When
this cannot be accomplished, then the firms undertake a risk of investing a large amount of
money and time just to fail to accomplish the estimated benefits of CRM(Mok, Sparksand
Kadampully 2013). At its centre, CRM is looked down upon as a business strategy and not as
a technology. The best rate of success of CRM can be achieved when the organization
initially develops their strategy for CRM then recognises their systems and establishes

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computable objectives for their CRM practice. Only then can it initiate the technological
implementation, recommended in spread out steps.
2.7 CRM in Tesco and Asda
It is known that Tesco and Asda are renowned retail sector firms that have been
operating globally and even in the market of United Kingdom. The organizations provide an
extensive range of products to their customers. Both the organizations have their own way of
handling CRM and it has been observed that the organizations are quite similar in handling
and retaining their customers (Manganand Lalwani 2016).
Asda undertook a decision against loyalty card system. Conversely, they have offered
low prices on every day on analogous shopping products and provide vouchers as extra
incentives. It is simple to check the prices of a store by making use of their website, and the
users can download their app or may even register an email with the use of their smart phones
There are several benefits of CRM to Asda that have been discussed below:
The capability to connect the transactional data to the individual consumers provides
Asda with a raised insight about their customer base and permits them to extract data in the
process that their rivals have taken for granted.
By bending the margin among the loyal onesandthe non-loyal customers, company is
able to administer short term profits against long-term commitment.
The call centre manages all the general enquiries of thecustomer,and even accepts
telesales and fax orders, aids on-line customer order enquiries and alterations, processes
catalogue requests, impacts refunds and credits etc.

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The call centre CRM assists the firmto manage over 5000 new online customers every
week; thereby an increase in sales over 20 folds the past 12-month period ending 2016;
thereby efficiently closing their the online sales gap with Tesco who are the market leaders.
Tesco on the other hand is a good example of innovation in the CRM. They have
launched a clubcard scheme that was established in the year 1995 and currently holds over 12
million households in their database. This scheme of Clubcard is an instance of
CRMinnovation(Doherty, Shakurand Ellis-Chadwick 2015).
The customers receive discounts in-store for spending, but the scheme really
increased its momentum when Tesco partnered with other sectors such as hotels, petrol, car
hire, and other more, to provide the customers with a expanded variety of rewards.
There were different schemes that were established to various family members (e.g.,
World of Wine Club,Tesco Kids Club) to branch out and raise the value.
The data from the ClubCard Scheme was exploited to target product offerings,
construct ranges of products, gain a precise knowledge of the shopping profiles and construct
customer loyalty.
Thus it can be said that comparison among the two firms is quite difficult and thus
data gathered from the various sources requires to be analysed in order have a concise idea
about CRM in retail sector.

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Chapter 3: Research Methodology
3.1 Introduction
Bhatand Darzi(2016) stated that the merits of a precise research can be attained by
“constructing an approach that is systematic in nature” in a articulately “practical flow”.
Schramm-Klein, Morschettand Swoboda(2015) stated that a precise research is “experiential”
meaning that is should be associated basically to one or more components of a actual
condition. Leaving this apart, an authentic research should even be “duplicable” so that the
outcome is examined by swapping the paper and thereby constructing a sound base to
undertake decisions.
3.2 Research Onion
In the method of research methodology, the research onion has a role that is
significant in nature so that the inventive instruments and technique knowhow can be
exploited with simplicity. In addition, the utilisation of the research onion gives out efficient
outcomes to the researchers. The research onion by taking assistance of the six variable
functionshelps the expert to achieve answers from the data obtained (Tweneboah-Koduah.
and Farley 2016). The six stratum of the onion are related to the process of the research and
systems that are introduced by the experts. This method is aiding to the horizon of time the
research philosophy as well.
3.3 Research Philosophy
According to Baeet al.(2014), epistemology or research philosophy implemented by
the analyst is full of significant estimations regarding the method with the help of which the
expert observes the world. These estimations on the other hand can persuade the strategy of
the research selected and the processes selected as a segment of the research strategy. The
principal step in understanding, which research philosophy is ideal to describe the

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objectivesof the research is to look at thethree most variable research philosophies that are
interpretivism, positivism and realism.
With the help of positivism, sustaining theories areutilised to construct hypothesis.
Then the research examines the hypotheses which in turn results to enhancement of more
theories. Positivism explains that only authentic knowledge can be observed as knowledge
and is related with evidence rather than imitations. The expert is seen as independent or
extrinsic of the gathering of the data and hence can do very less to have an impact on the
data.
On the other hand, interpretivism is the name given out to the contradictory
philosophy of positivism. It observes the matter of the subject with respect to the social
sciences, namely the institutions and the people as essentiallydissimilar from the subject
material of the natural sciences. It is far away from being subjective and concentrates on
discovering the intricacy of the social occurrence with an outlook to obtain interpretive
knowledge(Bhakoo, Singhand Chia 2015).
The realism philosophy is a combination of interpretivism and positivism and
philosophies. There are two kinds of realism namely direct realism and critical realism.
Giannakisand Harker(2014),explained that direct realism reveals to what extentpeoplehave
knowledge through theirfeelings and depicts the world precisely and on the other hand
critical realists quarrel that as analysts, they will only be able to gain knowledge of what is
happening in the social world if they gain knowledge regarding the social structures that have
given way to the consequence that is being trying to understand.
3.4 Research Approach
It is noticed that this is the most significant event in order to start the research with
respect to this paper in order to attain a desired and factual result. In this view, Al-

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hawari(2015)suggested that the approach of the researchassists in identifying each and every
stages that are undertaken for finishingvarious operations of the paper. It is acknowledged
that the research approach consists of the deductive and inductiveapproach and it is of
majorsignificance to choose the suitable method so that exact outcome can be attained. It is
observed that deductive approach is utilised in this paper as it would be appropriate for the
collection of the authentic results.
3.5 Research Design
The process of designing the research assists the paper with the knowledge of moving
towards the accuratecourse by concentrating on the objectives of the research paper.
Mols(2013), has described that research design assists in giving out the path by restricting the
result that is demanded, by taking help of which the existingsegment of the whole research is
concludedwith respect to the objective that has been given out earlier in the paper. The three
kinds of design are thedescriptive, exploratory andexplanatory.
It is observed that descriptive design of research design is implemented in this paper
in order to obtain an understanding regarding theoutcome that is demanded in this paper. It is
noticed that descriptive approach describes the issues and the concerns in facet and this
research is in the requirement of the same so that appropriate end result can be gained from
the data that has been collected.
3.6 Data Collection
The information that are obtained as the primaryrequirement to reply the genuineness
of the research, and it is observed that the gathering of the exact information has been
basedon the features of the research and the outcome that are demanded. The secondary data
are collected from the electronic journals and manuals and even from the articles that have
been brought forward by various researchers. It is observed that internet has even been

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assistingfor the obtaining of precious data in accordance to the customer relationship
management inthe retail sector. This data will assist the researchers for the evaluation of the
current patterns of the research problems. This research paper has considered the the
secondary data as the outcome gained from thesecondary sources in accordanceto CRM,
which has been discovered to be of vital significance(Abubakar, Mokhtarand Abdullattef
2014).
The secondary data that has been obtained from the company websites and the past
researches undertaken by the previous researchers on similar topics that have been put
forward with the help of various data sources and hence more genuine and present outcomes
can be collected in accordance to the primary data. It is even observed that the secondary data
is segmented in to quantitative and qualitative information and this research has only
exploited the quantitative information. It is because of the shortage of time, that qualitative
research has not been utilised. Secondary data has been deemed to be utmost importance as
positive and effective answers from various sources can be attained in order to conclude the
paper.
3.8 Secondary Data
The secondary data are gathered from the electronic journalsand manual and even
from the articles that have been brought forward by variousanalysts. It is observed that
internet has even been assisting for the obtaining of precious data in accordance to the
customer relationship management in the retail sector. The secondary data has even been
collected from the website of the selected organizations and it is seen that information
associated to customer relationship management has been put forth.

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3.9 Sampling Method
The process of sampling is a mechanism, which selectsthe data from a vast population
size. The sampling process is fundamental to the researchers to commence a selection of the
most accurate pool of the secondary data that can reveal the accurate outcome as it has the
finest associations in accordance to the objectives and the goals of the research. This research
utilises the cluster random sampling processthat will aid the selection the data from the vast
pool of information (Asomaningand Abdulai 2015).
This process of sampling is granted as the best suitable process as it gives out
equivalent opportunities for all the information data set and thereby choosing and hence
gaining data from all sources of the chosen set of pool. The researcher has chosen Tesco and
Asda and information relevant and precise to them in order to gain precise knowledge about
the outcome of the research that can be attained.
3.10 Data Analysis Plan
The information that has been gathered has been evaluated with the assistance of
several components of statistics. Kimand Mauborgne(2014), explained that efficient choice of
the statistical tools is crucial for the completion of the precise and reliable outcomes. It even
assists in upholding the lucidity and withholding the information that has been constructed.
The data that has been given out has been explained with respect to the past researches and
the evolvement of customer relationship management. The data are compared with respect to
the various sources so that effective idea can be attained.

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3.11 GAANT Chart
Task Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Selection of topic
and search for
justification
Constructing
literature
Selecting
appropriate
methods
Data collection
Data analysis and
representation
Reviewing the
outcomes
Conclusions and
recommendations
Submitting draft of
the project
Printing and final
submission

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Chapter 4: Data Analysis and Discussion:
Introduction:
This chapter would be dealing with the secondary data analysis that has been gathered
by the researcher over a period of time. The objectives or the research questions that have
been observed by the researcher would be associated in this section, studying comparatively
on the factors of CRM of Tesco and ASDA. Both have well base of customers within the UL
supermarket sector where over the years people have been loyal to their preferred brand for
various reasons. This chapter would be discussing about the details that the researcher has
been able to gather from different secondary sources along with evaluating of the same in
finding who holds what position in the UK supermarket.
Q1. How does the customer observe the degree of CRM practices in Tesco and Asda?
It has been found that Tesco has been competent in increasing the share of the market
through implementing of innovative CRM practices within the organization. The strategies of
CRM of Tesco have been stated to be successful for augmenting the market share of the
association. For Tesco, as per the survey, the top 5 per cent of the customers generally
account for 20 per cent of the sales. Tesco’s CRM is stated to be very popular and many of
the stores have been found striving hard in matching the standards of Tesco. Its CRM
practices as perceived by the customers are stated to be one of the popular involving
segregation of the customers as per the store expenditure. In achieving an objective of a
incessant relationship with its customers, it has been found that Tesco has been using a multi-
channel client management. This takes into account the design, deployment, coordination and
evaluation of the channels for developing the customers’ value through means of appropriate
customer maintenance and development. Tesco does maintain a sturdy database of the
customers. The customers have been provided with loyalty cards that provides special

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discounts to the customers. This augments the customers association with Tesco. They
generally get good quality products and that too at affordable rates. The preferences and
choices of the customers are being saved within Tesco’s database. Tesco’s customer service
employees work hard at the floor in evaluating the requirements of the customers along with
the value being provided to their customers.
However, it has been found through a research conducted by TARP, an independent
customer loyalty expert, depicting that 43 per cent of the customers of ASDA are ‘very
satisfied’ against 37 per cent at Tesco. As a brand ASDA has been striving hard in earning
trust through the factors of product, quality, service and pricing. ASDA does not believe in
having a loyalty programme unlike some of its counterparts, but they have been focusing on
the right things in winning and retaining the shoppers and they have got some loyal shoppers.
The recent campaigns of ASDA have been revolving around the factor of voucher giveaways.
ASDA is not into the short-term tactical activity, it believes in stepping back and focusing on
the overall experience of customers. It becomes easy in losing on the regular tactics of CRM
and losing their focus on the primary things.
Another interesting fact is that in the same survey conducted by TARP, it has been
found that while 32 per cent of the ASDA shoppers are of the opinion that they would be
using ASDA everytime wherever possible, only 25 per cent of the Tesco shoppers illustrated
the same loyalty level. The report also said that while ASDA has been delivering on the
conventional promise on price, this has not been the prime reason for the largely lead in the
satisfaction of the employees. After the factors of availability of staffs and queues, the rating
has been influenced by the range of the products, services and quality.
Q2. How do the customers rate the degree of customer satisfaction in Tesco and Asda?

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New data has been suggesting the fact that satisfaction of the customers along with
trust has been underpinned by the financial recovery made by Tesco. As per the reports of
Customer Service’s new UK Customer Satisfaction Index (UKCSI) revealing the fact that the
retailer has verified that Tesco has witnessed the retail sector’s largest annual increase in the
satisfaction factor of the customers, of 1.2 points on a 100-point index. On being asked
whether the customers do trust Tesco, consumers scored approximately 7.7 out of 10, up
from 7.5 that came up in 2016 January. The data has been suggesting the fact that this
development is mainly because of the fact that customers have been highly impressed with
the attitude of the staff of Tesco, scoring an improved 6.6 as compared to 5.8 out of a scale of
10 last year. The outcome is that the score of the customers is 8.5 out of a scale of 10 of they
are more likely to repurchase from the retailer.
The biggest areas of development for Tesco have been the measures for handling of
complaints and the proportion of the customers in getting right the ‘first’ time. The
supermarket witnessed enhanced sales for the third successive quarter, revealing 0.7 per cent
increase in revenue for the period of 2016. Interestingly, ASDA has the lowest rating of
satisfaction from the shoppers as compared to Tesco, as per the research from the Institute of
Customer Service. It has been reported that the approval rating of ASDA has slipped to 80
per cent, down from 81.5 per cent that was there a year ago in 2016. Tesco climbed 1.2
percentages during the time ASDA was seeing a fall in its customer rating. Overall, the
customer satisfaction scores for the retailers of food rose to 0.2 points to 81.4 per cent.
Tesco has improved a great deal from ASDA. There was a time when despite being
the most profitable supermarket group, Tesco enjoyed less customer satisfaction than the
ones who were shopping at ASDA, as reported in a survey conducted by TARP a few years
back. Tesco has been the most improved companies among the UK supermarket in terms of
the satisfaction of the customers. Customer importance cannot be mistreated when it comes to

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the success of the business for the supermarkets existing in UK. Conventional supermarkets
have been feeling the pinch in 2017 with a perfect blizzard of rivalry to the arena of online,
fluctuations within the rates of exchange and the rising costs in the structure of prices and
unprocessed constituents. With the tiniest gap in the satisfaction of customers between the
lowest and the highest performing businesses of any sector, a continuous focus on the
satisfaction of the customers which would be significant for the success of the business in
2017. There is everything present for the companies to play for and the supermarkets within
UK cannot take their eye of the ball. Customer service along with satisfaction is not about
dealing with the complaints, but also reacting to the customers- offering goods and services
of relevant nature and doing so in an easy way, effective and if there arises any sort of
problem, it is being dealt in the most professional of ways.
At Tesco, millions of the customers are in the habit of shopping on regular basis and
the company has been looking at ways in improving the experience of shopping for the
customers. The company has made nearly £1bn commitment in making the company better
for the customers of UK, the main improvement has been provided on the look of the stores,
providing greater value to the customers and making sure the customers get all the required
help each time, for which the company has gone on to recruit around 8000 colleagues.
It has often been seen that the satisfaction of the customers often leads to higher
prices of stocks. Another instance of a ‘low cost’ focused replica with a greater customer
knowledge coming from the supermarket retailer ASDA within UK that is being owned by
Walmart. With a promise of a price that would be leading the market, the customers of
ASDA has been valuing both the factor of low prices and the friendly staff that is being
identified as a strong permutation. Making use of the TV in communicating their exclusive
research that would be price-based, the firm would consistently reassuring the customers of
price-sensitive nature that it has been continuing in delivering the brand pledge.

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Q3. How the staffs of Tesco and Asda do observe the effect of CRM practices with
respect to the customer satisfaction?
The biggest strengths of Tesco and ASDA in the UK supermarket are the staffs that
have been hired, trained for better customer service so that their service quality helps in
retaining of the customers. Companies that needs to attain higher amount of profitability
needs to retain atleast 20 per cent of the customers through the process of satisfaction and
preventing them for being defected. It is important in acquiring relevant information along
with the knowledge about the behaviour patterns of the customers along with customizing of
the retail company’s offerings as per the needs of the customers. Employees believe that the
emergence of the CRM as a strategic tool helps in utilizing the information of the retail
customers in maintaining and attracting the relationship of the customers. Understanding the
profitability of the customers along with retaining of the profitable customers has been
identified by both the employees of Tesco and ASDA as the key value of the customer
relationship management.
Employees believe that the primary aim of CRM has been in improving the
satisfaction degree along with retaining the customers through appropriate analysis of the
knowledge of the customers thereby developing the total corporate competitiveness of the
firms like ASDA and Tesco. Two key drives, customer orientation and customer knowledge
have been recognized as per the research would be determining the efficient implementation
of the strategy of CRM. An improved relationship with can assist in attaining greater
withholding along with the factor of loyalty.
Some of the general dimensions of the framework of CRM is the key focus on
customers, knowledge management, technology based CRM along with CRM organization.
These dimensions have an important effect on the retention of the customers along with

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growth in the sales of the firm. Some of the researchers have concluded the fact that the
relationship of long-term nature between the retail organizations and the customers can be
developed when the service personnel possess more readiness towards the orientation of the
customers. It has been stated by the employees of Tesco that both the desire of the customers
along in extending his/her relationship with the company and his dependence on the
programs based on customer-loyalty positively impacts the retention of the customers and the
growth in the share of the customers.
The sales generation department at Tesco has been looking for the prospects with the
customers of existing nature along with the new one. The SF automation function within the
CRM facilitates the team in recording every possible contact with the new client, the points
of attention of the contact and if follow up is obligatory. This helps in providing the business
with authority along with notable effectiveness as there is negligible chance for replication.
The workers capacity outside the group of the business in having entry to this information
pledges that they possess the latest data of contact with the clients. This plays significantly as
the customers would not always be in making contact with the sales team, so at the time of
connecting with the employees outside the team of sales, the best level of satisfaction is
attained by the customers.
ASDA went for a survey a few years back when it launched its initiative by the name
of tellASDA. At that point of time the company has been issuing receipts at the tills of the
367 stores it had during that time offering relevant information on the ways customers can
make interpretations about their visits to the store. Customers did have option of offering
feedback via a website through website or through any number that is toll-free and are being
asked several questions along with being given the choice of leaving comments of their
alternative. ASDA has been working with Empathica on the proposal of being able to observe
the levels of service to the customers and putting right any of the perceived issues. Empathica

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has also been supporting a similar scheme in the place of Boots. The customer insight
manager states that the feedback is being used in several ways, for instance the comments of
the customers are being reviewed every week by the store executives of the company in
helping identifying the developments required, and the regional managers of ASDA make use
of the reports in identifying the stores that require more support. Within the head office of
ASDA the reports are being used by the operating board updating on the performance along
with the refurbishments of planning stores and openings of the new stores. Moreover, the
stores are able to view the score of their particular stores ranking against others within their
region and tracking the changes on monthly basis. This is one of the initiatives that is being
initiated by ASDA a few years back in collecting the feedback of customers.
Q4. Do the consumers have any recommendations in enhancing the CRM practices in
Tesco and Asda?
Although Tesco has been doing well, it still requires certain significant issues to focus
on. It has been acknowledged by all that the Tesco Clubcard has been very famous and
reliable among the customers it has, though there exists few retailers who have been
introducing enhanced rewards for their points in Clubcard than Tesco. The companies are
trying to gain more attention through all this. So for this reason Tesco would need to take into
account some significant initiatives in keeping intact its customers. The Tesco Clubcard is
significant for the relationship it has with the customers so it has to initiate some signi9ficant
rewards for the reliable customers better than its competitors.
ASDA has been scoring a bit low on the customer satisfaction front which means it
needs to track the behaviour of the customers throughout the sales cycle. The company needs
to hire more associates like Tesco for its existing stores. The sales associates admit that many
of the stores are understaffed, even while the brands have been building on more stores in the

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locations with low-traffic. Managers need to optimize the staffing in systematic manner for
the traffic rather than the building of the relationship.
Tesco has scored more than ASDA in this front; ASDA needs to focus on the hiring
of good quality sales associates rather than haphazard staffing method. It is important for the
company in using the staff intelligently through empowering of the sales associates in
contacting the present customers in proactive manner, recovering the lapsed customers and
cultivating the referral prospects.
The companies should also do well in creating a proactive referral program where the
top clients can encourage the friends to an experience of personalized shopping and store
events. Brands do not really make use of the efficient customer retention programs, however,
unfortunately the exercise of establishing of the customer recommendation programs is
already in position in stores of Tesco on global basis. Creating a measurable program of
education ensures each of the single associates of sales forms relationships of customers that
produces referrals and seeing sales augment with lower cost of marketing. It is important for
companies like ASDA in inspiring the uniformity across all the sales associates in all stores
in systematic and computable way.
Both Tesco and ASDA should focus on gaining information on customers through
using the information attained through the CRM software, creating a marketing that is more
specific for the customer base of both the companies. It is generally based on the time length
spend by the customers on the site of either two companies or in their respective stores, one
can build a quick campaign, taking in little interaction, or one that is more critical, with the
multiple echelon of interface.
It is important for both Tesco and ASDA in making a plan to understand their
audience, developing a strategic plan revolving around the insights. Creating of a precise and

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goals of measurable nature decides on which model of program would be motivating the
customers and providing them with the most unique of values. It is important in figuring out
the program making use of the information one have already put together. It is important in
determining the sorts of rewards and the ways the customer can earn them. Some of the ideas
for the reward-worthy actions are shopping on exact date, buying of explicit products; social
engagement, buying and money spend on the same. Giving each of the stated actions some
sort of point values and determining the ways the points are required in earning the specific
set of rewards.
Just because there is existence of any sort of customer loyalty program that does not
imply that the people would be using it or even come to know about it. It is important for the
companies in giving the program an identity, creating a landing page on the website and
developing certain tactics of in-store. It is important for both Tesco and ASDA to make their
programs simple and user-friendly and giving rewards in generous manner, especially during
the first stance. The early adopters would play a major role as they would be having the
power in spreading the power of spreading the word.
The most noteworthy component to these programs is the tracking of the success.
However, that is actually one of the most difficult facets of the retailers. It is important the
companies are able to measure and identify their ‘Key Performance Indicators (KPIs)’.

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Chapter 5: Conclusion Recommendation and Future Work
5.1 Conclusion
This is the last chapter of the dissertation that would be taking in the summary of the
overall dissertation and recommendations in bettering the situation on whole. Within the
domain of the business, most of the units are generally customer focused. Other than the
factor of profitability, the business organizations depends on the common feature which is
customers. Based on the two big scale retailers of the YK, this study mainly aimed at
identifying and comparing the important aspects and influences of the policies of CRM which
have been identified by these two companies. Key attention was being given to the schemes
of loyalty card that is Clubcard. The recognized important influential segment of customer
relationship management is the holders of loyalty Card of both Tesco and ASDA. On primary
basis, the customer relationship management has been covering continually areas like the
maintaining of relationships and building with the key base of income, sales and customer.
The relationship that companies have with their customers can be recognized as the most
significant factor of CRM. Reviewing of the existing literature, it is apparent that the key
influential facet of the customer relationship management is in generating, maintaining and
expansion of the relationship with the conventional and online base of their customers.
However, the findings of the study reveals the fact that customers do remain loyal more for
ASDA than for Tesco, though it has been found that Tesco has been investing more in
bringing back its loyal customers. However, it can be stated that these retailers have been
giving it all in remaining attentive to the demands of the customers. As a solid CRM base,
both the retailers have commenced the schemes of Loyalty Card. The customers have been
loyal to the respective brands who have been benefitting from the policies of CRM that is
being employed by the retailers over the years. However, one of the significant findings of

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the study explores the fact that the loyalty of the customers cannot be granted as stagnant and
non-flexible. It has often been found that a substantial number of the customers are in the
habit of visiting the stores with the purpose in either cross checking the prices or the
accessibility of the products along with the services. This study suggests the card holders of
Loyalty of both Tesco and ASDA do not restrict their shopping only within these two big
retailers. Loyalty cannot only be observed as ‘blindness’ where, abundant alternatives have
become presentable for the customers. The recommended CRM policy is for emphasizing on
the products along with the services improvement through the assuming of the expanded
strategies than only enduring restricted in maintain relationships with the customers. In terms
of the recognizing the recent trends of the adoption of CRM, receptiveness seems to be a vital
cause of effectual CRM. Innovations that have taken place on the technological front are
having their impacts on the conventional mode of CRM at least over a period of last few
years. Such impacts or influences have found their ways through the influences of several
scholars. The main elements along with the centres of the attention of CRM have
considerably distorted with the advancement in technology and the retailers have somewhat
negotiated with these sort of innovations that are technology oriented in more frequent
manner than ever before. The traditional policies of CRM are now being merged with the
electronic and conventional means of communication. This is for the reason that in
comparison with the small stores, understanding the shopping patterns of the customer with
the biggest retailers boasting of thousands of customers is something very difficult. The study
has been able to point out that this has been one of the reasons that incites that the large
retailers like Tesco and ASDA have been adopting the shifting facets of CRM.
5.2 Recommendations:
Both Tesco and ASDA have loyal set of customer base who have under all
circumstances shown their loyalty to these top brands not only in UK supermarket industry

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but across the globe. However, the urge to improve should not stop for any of the brand as
customers’ plays the most pivotal role in the life of retail companies. Tesco has been
approaching the leading agencies of CRM for input on its strategy of loyalty during time
when the company has been under immense pressure for few years to rejuvenate the
supermarket.
The world of high-end retail is one of the exceptional brand propositions for
marketers. It is often less pretentious by the fluctuations that takes place in the global
economy, given the fact that the preponderance of the buyers are wealthy in sufficient
manner in being immune from the sort of concerns that generally affects other segments.
Both Tesco and ASDA would do well to strategize in the following ways:
a. Targeting the right people at correct time:
At times even the big companies like ASDA find themselves in adapting to a more
comprehensive approach for their campaigns in marketing, ending up in doing more damage
than good. For example, simply sending of the newsletters to a list containing former buyers
who might or might not have any intention in purchasing for the second time can at times
leave them frustrated, causing fundamental damage to the brand, especially of the stature of
ASDA and Tesco.
Sending of personalized mail and having one to one having dialogues generates value
for the customer along with the brand, especially for ASDA. The company should inspire its
associates in generating their own simple brand appropriate emails to the clients of top-tier.
b. Referral Program:
In the truly claustrophobic world of the top-end sales, word of mouth is something
that still counts for many of the customers. ASDA has not been into much of loyalty

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programs like its rival Tesco, however, it needs to be stated whether the retailer wants to set
up a modified program for referral whereby consumers can associate their friends to the
company, or simply ensuring that they possess good things for saying about the brand,
offering stronger levels of the service in having an ever lasting impact.
If installing of the software of CRM can assist the business of ASDA in managing the
data o its customers and engage more efficiently with the purchasers, it might end up having
a bigger impact on the bottom line.
c. Direct Contact and Personal Contact:
Both the companies should provide their sales associates the opportunity in
interacting with customers on regular basis and not only occasions. The companies should
provide regular training to their sales associates in making them fully educated and
presentable on the ways to present their identifications in a method that motivates trust even
if the customer turns down in sharing their information on immediate basis.
For the sales people in doing their job in effective manner, one needs to get them the
correct data in understanding where the customers are coming from and how best to tackle
with them based on the situation under question.
d. Engaging through platforms of mobile:
A growing number of customers are becoming comfortable with the online shopping,
particularly through the tablets along with other campaigns is critical that retail businesses
can provide a mobile-optimised and combined processes of sales.
Through the storing of data and making it easier to admittance, CRM makes certain
that the teams across all the divisions of ASDA and Tesco can be getting access to all the
relevant information they require in providing stronger levels of the service of the customers.

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Customer Loyalty Programs:
Both the retail giants need to focus on creating more customer loyalty program. Both
Tesco and ASDA especially should look forward in developing more loyalty programs after
doing some research. It is important for the companies in understanding the real needs of the
customers, the amount they are willing to spend in getting it, the things that motivates them,
and the brands they love. It is important for these retail giants in finding the sweet spot
between the customer’s benefit and the advantages it would provide to the business.
In an era where customers want to spend minimum in getting the maximum amount of
good quality service and product it is important in understanding their patterns of purchase
and the required information in helping guide their strategy.
In case of loyalty programs, the companies need to avoid certain over-looked
opportunities which are personalization. It is significant that 50 per cent of the members of
the program, out of which only 20 per cent are being satisfied with the extent of the
personalization they, receive. Other common mistakes often committed by the companies
which need to be looked into is the factor of inconsistency, not been able to track the
members along with the behaviours of the customers, putting their own needs before that of
the customers, over-communication along with promotion of programs.
In creating a loyalty program for the customers that elevates the business of the retail
giants along with empowering the customers implies the fact that a customer loyalty program
of successful nature is an amalgamation of value, service for the customers, options for
redemption and feeling of experiential to the end user.

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5.3 Limitations of Study/Scope of Study:
The researcher had to take into considerations while completing this research study,
certain constraints that played their part in the research. Certain factors like time and cost
were important parameters that the researcher had to face issues with; a little more time
would have provided the researcher with ample opportunities in going into more details with
the study. An in-depth analysis would have been possible in coming out with more apt
analysis on the subject matter. Cost has been other factor that has limited for the researcher in
truing out some other things that could have been helpful in the research. However, the
researcher has kept enough prospects open for future study by any other researcher on the
same given topic. This research study would lay the platform for future researchers in
comparing the CRM of any retail companies on the global basis.

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