Morrison’s Customer Relationship Marketing

This paper explores the customer relationship management at Morrison stores with focus on customer portfolio, intimacy, network development, value proposition, and customer relationship marketing operations.

MORRISON’S CUSTOMER RELATIONSHIP MARKETING 1
Morrison’s Customer Relationship Marketing
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Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Relationship marketing and Customer relationship management.............................................3
3.0 Evaluation of Morrison’s customer relationship management process.....................................4
3.1 Customer portfolio analysis...................................................................................................4
3.1.1 Recommendation:............................................................................................................5
3.2 Customer intimacy.................................................................................................................6
3.2.1 Segmentation...................................................................................................................6
3.2.2 Loyalty points..................................................................................................................6
3.2.3 Morrison Relationship Marketing.......................................................................................8
3.3 Network development............................................................................................................9
3.4 Value Proposition Development..........................................................................................10
3.5 Managing customer lifecycle...............................................................................................11
4.0 Operational customer relationship marketing and sales force automation..............................12
5.0 Application of sales force automation to enhance the loyalty programme (Mixed and Match
card)...............................................................................................................................................13
5.1 Contact management and customer personalization............................................................13
5.2 Customer Service management and customer intimacy......................................................13
5.3 Artificial intelligence Sales-Boost and product value creation............................................14
Conclusion.....................................................................................................................................15

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List of References..........................................................................................................................17

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1.0 Introduction
Different organizations engage in different marketing strategies that result in their
tremendous growth. Marketing strategies such relationship marketing always aims at long-term
interaction and engagement between customers and the business as exhibited by Morrisons
through having best-trained and motivated employees, provision of information, specialized
attention, after sakes services and products convenience has resulted into undoubted loyalty
(Belanche, Casaló & Guinalíu, 2013). The following paper thus aims at exploring the customer
relationship management at Morrison stores with focus customers portfolio, intimacy, network
development, value proposition, and customer relationship marketing operations.
2.0 Relationship marketing and Customer relationship management
Relationship marketing refers to a marketing strategy or sales techniques that aim at
creating a long-term relationship that is beneficial to the customers by providing exemplary
products and services. Customer’s engagement and relationship building have become the order
of the day in most of the successful business organizations such as American Airlines, Dell and
Ikea. Relationship marketing consists of five segments that are: influencer marketing, partner
marketing, employee advocacy, referral marketing, and affiliate marketing (Belanche, Casaló &
Guinalíu 2013). On the other hand, customer relationship management refers to the combination
of practices, technologies, and strategies by an organization to facilitate efficient data collection,
analysis, and management on customers’ behaviors, preferences, and attitudes to create a good
customer service relationship as well as customers’ retention (La &Yi 2015).

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While Relationship management focuses on the sales, through increasing the relationship
and d engagement, Customer relationship management is tools that analyses and help the
business to understand customer thus increasing sales fully (Odongo, 2016). CRM provides both
online and offline marketing activities that help in building a long-term relationship that is
significant in achieving successful relationship marketing.
Customer relationship management and relationship marketing are significant to both the
business and the customers. Relationship marketing aims at increasing the organization’s sales
by focusing on trust and customer’s engagement, through the use of customer relationship
management tools that keep customer's records. Customer relationship management tools allow
online and offline relationship marketing through the application of automated and coordinated
systems.
3.0 Evaluation of Morrison’s customer relationship management process
Morrison’s customer relationship management strategy is high; customer-centric and
always focuses on long-term relationships through the provision of benefits and values.
Customer relationship management strategies that aim at improving customer’s experiences
include tailoring of the physical products and service delivery services to meet the specific needs
of the customers. Morrison has developed structured CRM programs that have facilitated the
continuous growth and increase of customers loyalty across all the stores over the past 1o
decades. For example, Morrison Stores has a loyalty card that captures customer’s information
such as date of birth and postcode. After every shopping the card compares the shopping cost
against other retail shopping costss, thus helping the buyer to make the correct decision,

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3.1 Customer portfolio analysis
Customer portfolio analysis requires organizations to identify their customers to aid in
developing products and services as well as facilitate interaction for a long-term relationship.
From the cases study, it is evidential that Morrison was not able to conduct an extensive
customer’s portfolio analysis (Čermák, 2015). As much as the superstore Morrison was able to
create a structured customer’s portfolio majorly fresh foods since Morrison release that a large
number of customers loved fresh foods. However, the customer’s portfolio identifies that the
profiling of Morrison customers is not able to sustain them in the competitive environment with
the less number of varied products (Thøgersen, 2016). Numerous customers are not interested in
fresh foods; thus the grouping becomes too general.
3.1.1 Recommendation:
Morrison to diversify its customer's portfolio through opening departments to range from
different products and services such as grains, cereals, ready to eat foods and other products.
Through this, the store will be transformed from fresh food oriented to all “everything store.”
resulting in increased customer traffic flow into the store.
While diversifying its products, there are different marketing relationship strategies that
Morrison can adapt to ensure the success of the products in the market. The most common
strategy that Morrison can employ is the “House of Brand “which has been used by numerous
companies such as Google(Quaye & Mensah, A. 2018). Through the strategy, Morrison will be
able to focus different messages to specific products and specific customers thus eliminating any
probability of confusion. The strategy requires that each brand attains its marketing budget,
marketing position, and customer segmentation. Additionally, the store will have a better

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opportunity in competing with potential customers such as Tesco that has wide customer’s
portfolio.
3.2 Customer intimacy
Customer identification and understanding customer’s behaviors are two different things.
Most of the organization have infrastructure that aids in collecting data, loyalty card, and geo-
demographic data but fail to use the data in creating a better understanding of their target
customers, however, organizations such as Morrison as done better in creating customer intimacy
through the use of “Match & More” card (Nassar, 2015). The “Match & More” card enables the
price comparison products among the largest stores and rewards the custom in case the product
tends to be less cheap in another store. The program is m9re customer centric thus resulting in
intimacy creation with the store since most of the customers find themselves purchasing items
that they would not have bought. The intimacy created pushes them to focus on collecting more
points that will help them to make future purchases.
3.2.1 Segmentation
Morrison’s improved its customer’s intimacy through well-structured segmentation.
Market segmentation adopted by Morrison included psychological and behavioral. Psychological
enabled the retailer to satisfy customer’s needs through identifying their customer’s lifestyles and
motives while the behavioral segmentation focused on the purchasing behavior of the customers,
thus ensured strategies to reward loyal customers. More importantly, Morrison positioned itself
as the low-priced retailer’s shop that attracted the attention and loyalty of many customers across
the world.

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3.2.2 Loyalty points
Morrison employs an incentive strategy as a way of building customers experience and
loyalty. The adoption of the “Match & More” card allows customers to compare prices of
products within other stores such as Aldi and Lidl, Tesco and Asda. The card requires the
customers to register online thus provide an opportunity to capture the customer’s basic
information such as date birth that later is used to understand the customer. After every
shopping, the loyalty card is always swiped at the till, and the cost of the purchased products are
compared with other stores such as Tesco and analysis made. If the products tend to be cheaper
at other stores, then points are added into the card, and when the points accumulate to about
5000, a voucher equivalent to $5 is handed for the next shopping. The incentive idea to the
customers has enabled Morrison to attract the attention of many customers, build on they trust
and retain them for a quite long time, thus increasing their performance in the UK market (Baker,
2014).
Value chain model of CRM aims at providing better insights into the business on ways to
develop and implement CRM strategies. The model developed by Francis Buttle in 2004
integrates both the internal and external process to create value for the customers’ profit by long-
term association chances, work network development, value proposition creation, and customer
management cycle. Morrison too can use chain model of CRM in increasing its customer
relationship. According to the model, a valuable customer is one that creates great value to the
business, and in most cases, only about 20% of customers are always strategically significant to
the business (Balas & Korenjak, 2017). These customers tend to create more revenue, loyalty,
and value; thus business has to give them special attention than the rest of customers through the

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application of the value chain customer relation management stages(Echchakoui, 2016). The
stages entail customer portfolio analysis, customer intimacy, network development, value
proposition development, and customer lifecycle management.
However, to enhance customer intimacy through the value creation model, Morrison
needs to identify products that are less profitable and eliminate them from the store. The
information obtained from the “match & more” card, help in identifying the best products
bought by potential customers, thus identifying better ways of making the products more
valuable and intimating to customers through making them have more points than other products.
Through this customer’s love from the product will increase to acquire more points thus
increasing the total revenue collection (Taghipourian & Bakhsh, 2017).
3.2.3 Morrison Relationship Marketing
3.2.3.1 Good Aspect -Market Streets
The good aspects of Morrison relationship marketing include market street and one team
approach. Morrison RM entailed the application of one-team approach with specialised customer
attention that ensures all customers were attended to irrespective of the role and potion of the
employees. Secondly, the store has ensured availability of various services such as butchers,
bakers fishmongers along the market streets that are well trained in customer services to ensure
that all the customers receive personalized services, thus leading to a high level of customer
satisfaction. Thirdly, Morrison marketing relationship is full of information through the
provision of materials, catalogs, and leaflets as well as in-store directions that provide directions
while shopping in the stores. Lastly, Morrison offers after sales services to various customers

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through various strategies such s refunds, packaging and quick responses to the customer’s
complaints.
3.3.3.2 Bad Aspects-Restricted Registration
Morrison’s bad aspect was the restriction that required only the registered customers to
gain points of loyalty. Their card required all to be registered online, and this tentatively blocked
about 5.5 million potential customers.
3.3 Network development
Company network refers to the connection between the company and another
stakeholder. The Network consists of organizational stakeholders such as suppliers, employees,
and investors that facilitate the company in creating good customer relationship and is significant
to the company in creating values for the customers too (La & Yi, 2015). Therefore, to achieve
this, every organization must achieve a full structured network to fulfill the CRM strategies.
Morrison store has a well-structured network.
Morrison employees are cultured to facilitate the development and growth of the store by
the provision of high-quality services and products. Morrison is obligated to training the
employees to attain the right service skills that enhance customer relationship creation.
Moreover, employees are always out to help in marketing the stores’ operations. For example,
during the “price-cutting strategy,” Morrison employees together with other shoppers were
captured dancing in retaliation to the supermarkets brand price. The union activated the
intentions of other customers to shop from the store.

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Morrison suppliers are of high quality since most of the majors on fresh products such as
vegetables and fruits. These fresh products are prone to quality reduction depending on the
handling method from the farms to the stores. To achieve thus, Morrison is majoring in local
suppliers that do not exceed 35-mile radius to ensure efficient transport of products to the
company in an attempt to fulfill the customers’ request to buy from the local farmers. Secondly,
the move is an attempt to support the local farmers who ultimately regards the store highly
creating a good reputation.
3.4 Value Proposition Development
Value propositioning development requires every organization to organize all the
networks to work together in providing and creating values of the chosen products to the
customers (Kim & Kwon, 2013). Applying the theory of CRM, Morrison was able to achieve
value positioning of the products and services it delivers. For example, Morrison created the
value of the groceries by allowing and adopting the ‘match & more’ card. The aim was to show
and convince customers that they are the only store that offers a good quality product at a
reduced price as compared to other stores such as Tesco.
Secondly, Morrison increased the product value through improving the quality of the
service by training employees to attain service skill required in every department. Morrison skills
development is based on the philosophy “Learn while you earn,” that has ensured both the
existing and the recruits gain the required qualifications responsible for quality customer service.
Additionally, Morrison's culture of “one-team” approach reduces inter-departments competitions,
thus allowing all employees to celebrate the success of the company as one. The culture thus

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12
rewards colleague’s discounts and long service to profit sharing resulting in motivated
employees.
Morrison use of “Match &more” card was a strategy to increase its value and steal
customers from other supermarkets. Frequent shoppers at Morrison were able to accrue loyalty
points that were later transformed into dollars the moment they reached about 5000 points. The
changed points thus allowed customers to use the points in their next purchases in the store
making them feel that all the products purchased from the store had both monetary value and
loyalty value (Smith, 2015).
Recommendation: Morrison needs to help the customer understand the value of the
products offered rather than expecting customers to embrace the price cuts of the product since
through thus it will focus on specific benefits to customers to gain better competitive advantage.
3.5 Managing customer lifecycle
The last step of CRM is managing the customer lifecycle, to create value and have a long
term relationship since most of the customers do not always remain loyal to an organization for
long. Customer lifecycle thus includes the time an individual becomes a potential customer to
that time the individual leaves the shop, to another (Bojei & Abu, 2014). Morrison has done well
in managing the customer’s life cycle through highly erecting the switching barriers such as
adopting high customer satisfaction, customer retention plan, and customer development plan
(Alrubaiee, 2012). Most of the customer possesses fewer inclines to switch to another alternative
thus leading to loss of customer’s loyalty, reduction of revenue collection. Morrison’s customer's

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retention plan entails various loyalty services that are accrued while a shopper buys a product
that is perceived to be much lesser in another store such as Tesco.
Additionally, Morrison customer’s retention plan is facilitated by the strong capability to
offer a wide range of hot and fresh foods than other potential supermarkets. Thus many
customers perceive the store as the only place to find whatever fresh food with the best quality,
best service, and price. Morrison’s customer development plan through the application of “match
& more” card allows the company to have information about customers’ purchasing behavior.
Analyzing the information, Morison can determine those types’ of customers that are considering
quitting and finding better ways of retaining them. Consequently, the CRM also allows Morison
to reward customers depending on their purchase ability, thus making them feel treasured.
4.0 Operational customer relationship marketing and sales force automation
Operational customer relationship marketing refers to the strategies that are laid by the
organization or the marketing team in determining who should be on the top list of the marketing
and how best to approach the target's market to create a contact that will lead to better
understanding(Heeks & Stanforth, 2014). Operational relationship marketing thus aims at
enhancing the marketing process through drilling the customer data with laser focus to determine
the most likely buyers thus launching the best campaign to attract their attention towards the
products and services. Secondly, OCRM aims at enhancing the internal communication among
the departments towards achieving the same goal or target market, since it places the entire
department to easy access to the customer’s information. Lastly, OCRM enhances both the cross-

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selling and upselling of the products and services through using the purchase and sales history to
tailor marketing tactics towards the target's audience.
On the other hand sales force automation refers to the customer relationship management
that focuses on prospects, sales, and track lead through the having targeted lead data. It is a
software technique that automates sales aspects such as contact management, order processing,
information sharing, order tracking, sales forecast, and analysis as well as marketing employee
performance evaluation (Jelinek, R. (2013). Both operational customer relationship management
and sales force automation are technics that aim at enhancing an organizations ability in tracking
and attracting customers, marinating good customer’s relationship as well as retaining the
existing.
Both OCRM and SFA help business organizations to manage product pipeline, create
workflows and identify opportunities more efficiently. Both provide actionable objectives for the
marketing sales teams with a systematic approach to tracking the efforts. Moreover, both enables
the organization to manage workflow by reducing excessive responsibilities upon an employee
thus enhancing performance.
5.0 Application of sales force automation to enhance the loyalty program (Mixed and
Match card)
Salesforce automation is used by most of the organization to enhance loyalty program.
The contact management should enable Morrison in implementing the first recommendation that
is diversification of the customer’s portfolio through the following:

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5.1 Contact management and customer personalization
Email content curation to reduce the time that Morrison will spend in reading the emails
and delivery personalizes emails to millions of customers. The use of sales force automation thus
will engage with the artificial intelligence to track down the product subscribers, a data obtained
from the “match and more” card. SFA in collaboration with the CRM will enhance Morrison’s
capability of tracking down the psychological, geographical and demographical factors of
different clients and how the behaviors of this client affect the product selling process(Kim, Heo
& Lim, 2018). With all these kind of information, the salesperson cannot wait much time in
creating loyalty since the loyalty card will entice the customers to come back to win more points.
5.2 Customer Service management and customer intimacy
Customer Service management should aim at improving customer intimacy by improving
the service quality as well as the brand. Customer intimacy is crucial since it enhances loyalty to
the organization. According to Mariadoss, Milewicz, Lee and Sahaym, 2014) it cost a business
organization more than 5 to 7 times in acquiring a new customer than retaining the existing
customer; thus customer retention is significant for Morrison under the competitive environment.
Through the use of “Match & more” card, Morrison retrieves the contacts of various potential
customers and use it in marketing automation and demand generation. The contact management
facilitates customer retention as it aims at improving the customer’s data quality, provides
location intelligence and customization of the communication. Better application of the “match
& More” card thus enhance Morrison’s chances of accessing customer’s needs and combining
with the sales force automation; the supermarket can reach more millions of potential customers
and personalize their portfolios.

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5.3 Artificial intelligence Sales-Boost and product value creation
AI sales-Boost should aid Morrison’s customer in understanding the value of the products
offered rather than expecting customers to embrace the price cuts of the product to enhance the
sales of the products. Through the use of the SFA, each salesperson at Morrison will not be
spending a lot of energy and time trying to convince customers to purchase the old products in
the store. The store will be able to develop new products through the use of SFA since the
salesperson will have the capability to determine the customer's preferences and likes;
information that will be received after the analysis of the customers purchasing behavior data.
Through this, the product line of Morrison will have an opportunity to expand and diversified to
capture a large number of customer’s portfolios, thus leading to varied products to choose.
According to Tomczyk (2016), a large variety of products helps in attracting a large number of
purchaser that eventually increases the revenue collection of the organization. Therefore
Morrison retail engine should be completely automatic to allow most of the stores to provide and
supply various products that range from fresh food to non-fresh food and non-food items. The
sale force automation will enable each store to connect with the headquarter through computer
applications to determine the level of stock in each store.
Conclusion
Morrison that started as a stall in Bradford and continued to grow steadily to a superstore
with over 450 stores is now the fourth largest food in the UK. The tremendous growth is as a
result of well build customer relationship marketing and Customer relationship management. S
found above Relationship marketing is a marketing strategy that aims at developing and

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17
managing customers’ trust through long-term engagement and relationship through the provision
of exemplary products and services. While Customer relationship management is tools that
analyses and help the business to understand customer thus increasing sales fully. CRM provides
both online and offline marketing the activities that help in building a long-term relationship that
is significant in achieving successful relationship marketing.
Morrison has successfully applied CRM through following all the five steps: Customer
portfolio analysis, Customer intimacy, Network development, and Value Proposition
Development and Managing customer lifecycle. Morrison’s customer loyalty is facilitated by the
creation of Match & More” card allows customers to compare prices of products within other
stores such as Aldi and Lidl, Tesco and Asda. The card requires the customers to register online
thus provide an opportunity to capture the customer’s basic information such as date birth that
later is used to understand the customer.
However, from the evaluation, Morrison needs more adjustment on its customer
relationship management to ensure continuous competitive advantage in the UK retail market.
Morrison needs to Morrison to diversify its customer's portfolio through opening departments to
range from different products and services such as grains, cereals, ready to eat foods and other
products. Secondly, Morrison needs to: Morrison needs to help the customer understand the
value of the products offered rather than expecting customers to embrace the price cuts of the
product.

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18
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