Customer Experience of Tesco: Pillars, Digital Disruption and Recommendations

This report analyzes the customer experience of Tesco, a British multinational grocery and merchandising grocery supermarket store, and provides recommendations for improvement. It covers the six pillars of customer experience model and applies them to Tesco, as well as the implications of digital disruption on customer experience.

CW1 Individual Report

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Customer experience of Tesco.....................................................................................................4
Customers and their frequency....................................................................................................5
Pillars of Customer Experience Model........................................................................................5
Digital Disruption of customer experience..................................................................................6
Recommendation to Tesco..........................................................................................................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 Tesco, a British multinational grocery and merchandising
grocery supermarket store, headquartered in Welwyn Garden city, London. 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 Tesco. 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
position in company. Every company have different set of value that helps in better
understanding the customer and generates goodwill in the market. Following are the core values
of Tesco.
 Understanding the customer – The core value of Tesco 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. Tesco 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
Tesco 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 Tesco 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 Tesco
Tesco 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
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. Tesco 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). Tesco 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 fro Tesco.
 Integrity – Tesco 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 Tesco, 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 Tesco 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 – Tesco 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.
Tesco 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. Tesco 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 understanding the specific circumstances of customers along with adapting the
experience in accordance with a key part of personalization. Tesco 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. Tesco 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 Tesco, it wants to provide with its customers in a unique
way. Following are the digital disruptions of Tesco.
 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 Tesco 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. Tesco 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 Tesco 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
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 Tesco
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. Tesco 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. Tesco 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
implementing an evolving marketing concept. Journal of the Academy of Marketing
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. FinTech innovation: Revolutionary or evolutionary business model
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.