Customer Experience of Sainsbury: Pillars, Digital Disruption and Recommendations
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Added on 2023/06/10
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This report analyzes the customer experience of Sainsbury, including its core values, customer demographics, six pillars of customer experience model, and digital disruptions. Recommendations are also provided to improve customer service.
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Contents TASK...............................................................................................................................................3 Customer experience of Sainsbury..............................................................................................4 Customers and their frequency....................................................................................................5 Pillars of Customer Experience Model........................................................................................5 Digital Disruption of customer experience..................................................................................6 Recommendation to Sainsbury....................................................................................................8 CONCLUSION................................................................................................................................8 REFERENCES..............................................................................................................................10
INTRODUCTION It is customer tendency to but the quality product but by paying less price. So it is the responsibility of the company to deliver the quality product at a reasonable price so that it can provide with better customer experience. Customer experience may be defined as the impression of the customers have of the company’s brand as a whole(Bhalla, 2019). The company should make priority rather than their business. It is needed to obtain the feedback from the customers so that they can understand better, analyse and act in order to improve their area in which they lack. This project report is based on Sainsbury, second largest chain of supermarkets that offers groceries and other essentials to customers, headquartered in London, UK. This report will cover the value proposition and the customers along with their demographics. In addition to that, it will cover the six pillars of customer experience model and apply on the Sainsbury. At last it will include the implication of digital disruption in order to deliver the customer experience. TASK It is important for every company to understand the customer needs and wants and produce h exact product that will help in fulfilling the requirements of customer. If a company do not comply with the value of customer, then it becomes a threat in order to maintain sustainability positionincompany.Everycompanyhavedifferentsetofvaluethathelpsinbetter understanding the customer and generates goodwill in the market. Following are the core values of Sainsbury Understanding the customer– The core valueof Sainsbury is to understand its customers deeply so that they can try to improve their products and being innovation to their products in order to satisfy their needs. Customers are the heart of any company and they contribute in uplifting the company. Sainsbury regularly communicates with their customers and takes feedback so that they can improve their service to meet the customer requirements. It is a very complex and continuous procedure. It increases the value of company too. Be first to meet their needs– The company regularly focus on becoming the first to meet customers’ needs and wants. It helps the company in getting the first mover
advantage and creates a core value in the competitive market(Marinchak, Forrest and Hoanca, 2018). Sourcing and providing quality products– The main of the company is to provide better quality of products at a reasonable price. It sources its raw material direct from farmers and other suppliers that provide good quality of products at cheaper prices. There are many suppliers that provides the same quality of products but the management of Sainsbury is very effective as it analyses the alternatives available and opt the supplier who is rendering standard quality products at a reasonable price. Work as a team– The management of Sainsbury is very strong and believes in team efforts rather than individual. It has been analysed that work can be done more effective and efficient if it done by the contribution of every personnel. They respect and trust each other that creates core value to the company. Customer experience of Sainsbury Sainsbury regularly focus on improving its customer support by providing the best service to their customer. They try to provide the quality products at a reasonable price. They deeply analyse the customer needs and wants and try to fix the issues that are coming in the way of its expansion. Company opt the best supplier and but the goods in bulk that reduces the overall cost of company so that they can offer the better price to their customer. They use digital platform that provides the service of online ordering from their cell phones. It becomes convenient for the customers to get the product right on their door step. It helps in gaining the insights of customer and enables company in understanding what the customer needs and offer them with the same product in order to satisfy their needs. The customer reinvests their profits so that they can provide with better offering to their customers. It has been analysed that approx. 6% of the price of their products have been lower. Their new fresh food is performing ahead of their expectations that helps in enhancing value proposition of the company. Company has made a significant progress against the priorities in order to stabilising the business and positioning well for the future. The company have formulated effective plan that will help in being more productive and efficient. The company has also made its business more sustainable by collecting soft plastic at their stores which will reduce the impact of their
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operations on environment. This contributes in enhancing their value proposition as they are much conscious about the environment. Customers and their frequency The customer base of retail industry is very wide and it is important for the companies to provide the quality products at reasonable price. Groceries are used in every household and company target to those people who want quality along with lower price. It is the tendency of every customer to opt the product which fits in their budget. Sainsbury is having a wide range of products for all the categories of people under one roof. The fequnecy of the customers is around 25-30 days or sometimes it may be reduced to 15 days too. This shows that company is having a large customer base and helps in creating a value propositions in market. It wants to capture the whole market and provides with huge variety of products so that customer can compare from one product to other. The company targets every household and offers various discounts so tht6a it may attract potential products. The demographic that company is targeting in that area in which there are not many shops and customers have to go far to get the product. Based on the demographics and culture it places their product by understanding the needs of customer in that area. Pillars of Customer Experience Model Six pillars of customer experience model were created to showcase the emotional outcome that is closely linked to deliver better and exceptional customer experience. This combination of six pillars help in understanding the effectiveness of customer experience that is delivered through different channels and industries(Batat, W., 2019). Sainsbury is having grip on these pillars so that they can measure the customer experience level. Following are the six pillars and their application in context to Sainsbury. Integrity– Sainsbury focus on displaying the trustworthiness on a constant or regular basis so that it may create integrity. The employees of the company focus on creating trust building moments and events that helps in building and increasing integrity. It has been analysed that from the point of view of customer, the companies which deliver their promises and up to that, are the key to integrity. In Sainsbury, trust and integrity are found by the way of doing work(Hamouda, 2021).
Resolution– It is very important to regain the customer who have bad experience. No matter what is the quality of products and processes. Companies like Sainsbury is having those effective processes which can help in gaining the customer back and early as possible. It is important that customer should think about the service recovery experience. There are two most successful resolutions on which company rely are acting with urgency and a sincere apology in order to correct the wrongs. Expectations– Sainsbury sets out their high standards. It is normal for the customers to expect high on how their needs can be satisfied based on their standards encountered. Sainsbury know that their brand promise along with the interactions set expectations to customers that is needed to be fulfilled or may even exceeds at some cases. Empathy– Empathy is strongly associated with understanding customer experience in emotional terms. Sainsbury focus on creating strong relationship as much possible with empathy creating behaviours. This helps the business to show their customers that they know and how they feel along with providing solution because of mutual understanding (Ro, Balaji and Nguyen 2017). Personalization– it is one of the most important component of experiences and it helps in understandingthespecificcircumstancesof customersalong withadaptingthe experience in accordance with a key part of personalization. Sainsbury is making its customers feel more valued and important after the interaction with company. Time and Effort– Customers wants quick gratification because of lack of time as they have. The company tries to remove those obstacles that delays in taking decision making process(Aliekperov, 2020). In addition to that, it also helps in achieving their objectives that will contribute in enhancing loyalty. Sainsbury is using the time as a competitive advantage so bthat it can cut cost. Digital Disruption of customer experience It has been analysed that almost half of the business leaders are concerned with level of disruption in retail sector. Technology is emerging now a days that helps the company to alter its business strategy. For Sainsbury, it wants to provide with its customers in a unique way. Following are the digital disruptions of Sainsbury.
Loyalty Apps– The company is offering loyalty programs that allows customers to get extra benefits whenever they referred or purchase products from their store. A loyalty scheme has been introduced for the frequent customers to provide with extra benefits (Homburg, Jozić. and Kuehnl, 2017). The customers of Sainsbury are loyal because of their psychological connection with company. The customers are provided with cashback rewards or freebies. This scheme will help the company in generating higher revenue and thus more profitability. The customer who visit store frequently will be given free items so that they can be loyal forb the company. These schemes are beneficial for both the customer and company. E – receipts– It is the digital evidence or proof that shows customer have purchased item from particular store. It is the latest method for opting receipts in a digital form. Sainsbury is providing with a digital receipt on customer’s email address. This will help the customer in retrieving details through online mode. In case of paper receipts, it may possible to lost or become wet and becomes hectic to get details. But this allows customer to get the paper and digital receipts. This will help in preserving environment by using paperless technology. This gives an insight of better customer experience as customer think along with profit making company is also conscious about environment protection. With the use of e receipts Sainsbury can get the insight pf customer and their billing about so that they can target their valuable customer. Customer analytics can be made through the billing amount and becomes easy to segregate customer based on their spending nature and frequency. The company can obtain the details of their customers too so that they can better understand customer needs and wants. It helps in creating a strong relationship with their customer in order to provide better service experience. Home delivery– The company is providing an online platform that will helps the customer in getting their products delivered to home. The online portal can be accessible over the mobile phone too and becomes easy and convenient to get their product( Wang, Chen and Zhang, 2020). This enhances the customer experience. This becomes more convenient for the customer to get product. By taking the customer information and creating insight can help company to better understand their customer. Inverting in right tool– The main aim of company is to provide better service experience to their customers. So it is needed to have right tools and equipment that will
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helps in delivering better customer experience. The company should regularly update their resources and bring latest technological tools that improves the overall customer experience. Work becomes automated by opting technology that impacts positive on customer’s mind. Recommendation to Sainsbury The company tries to capture the whole market and uses various tactics so that they may improve their customer service. They tend to bring their old customers too who are having bad experience for company. Company tries to regain by producing product which can satisfy their needs but along with that they should provide with extra benefits vin order to compensate for their poor customer service. Company should try to interact with their customers on social media as most of the audience is available of social media platforms on which they can share their views and thoughts. Customers can share their experience as how they feel about company. Company should invite feedbacks too and take in a positive way so that they can improve their customer experience service. The company should be provided with job satisfaction to their employees. Company should measure their effectiveness of customer service and if any course of needed, management could take action in order to improve. Sainsbury should focus on setting up KPI and compare their current performance so that it can get insight of their plan. It will help in knowing and understanding what is needed to enhance performance of company’s service. The company should take reviews from customers who have opted their product and post on their social media handles. Customer experience can be enhanced by understanding deeply their needs and wants and try to fix it by producing exact product that fulfils their needs. Sainsbury should set standards for their customers and it becomes easy to implement. Company should invite all the ideas of their management team and opt the best idea available.
CONCLUSION From the above project report, it was concluded that customer experience plays a vital role in defining success of company. Companies try to make their service better so that they can attract a large customer base. They should treat their customer in unique way that makes them different from one another. They should opt the new technology so that they can render better customer experience. It is very important for the company to comply with all standard of better customer service. Company should take feedbacks from their customer and take it into positive way and take immediate action to improve, in case of bad experience faced by customer. It has been analysed that company should try to provide beyond customer expectation as it will lead to create value proposition of company.Customer wants easy and convenient platform such as self-billing service. Auto packaging service that impacts in a positive way in customer mind.
REFERENCES Books and Journals Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward implementinganevolvingmarketingconcept.JournaloftheAcademyofMarketing Science,45(3), pp.377-401. Roy, S.K., Balaji, M.S., Sadeque, S., Nguyen, B. and Melewar, T.C., 2017. Constituents and consequences of smart customer experience in retailing.Technological Forecasting and Social Change,124, pp.257-270. Shi, S., Wang, Y., Chen, X. and Zhang, Q., 2020. Conceptualization of omnichannel customer experience and its impact on shopping intention: A mixed-method approach.International Journal of Information Management,50, pp.325-336. Marinchak, C.M., Forrest, E. and Hoanca, B., 2018. Artificial intelligence: Redefining marketing management and the customer experience.International Journal of E-Entrepreneurship and Innovation (IJEEI),8(2), pp.14-24. Bhalla,R.,2019.FinTechinnovation:Revolutionaryorevolutionarybusinessmodel disruption?.Journal of Digital Banking,4(2), pp.102-110. Batat, W., 2019.Experiential marketing: Consumer behavior, customer experience and the 7Es. Routledge. Robra-Bissantz, S. and Lattemann, C., 2019.Digital customer experience. Springer Fachmedien Wiesbaden. Aliekperov, A., 2020.The customer experience model. Routledge. Hamouda, M., 2021. Purchase intention through mobile applications: a customer experience lens.International Journal of Retail & Distribution Management.