Improving Customer Experience: A Case Study of TESCO

This report discusses the best delivery of customer experience by Tesco. It covers the value proposition of Tesco for its large customer base globally. It also covers the six pillars of customers' experience model in context with Tesco. Further, the digital disruptions faced by Tesco in delivering customers' experience and strategic recommendations to improve the same will also be dealt with in this report.

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Customer Experience

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Value Proposition of TESCO......................................................................................................3
How TESCO delivers positive customers' experience................................................................4
Target customers of TESCO.......................................................................................................5
The Six Pillars of Customers' Experience Model.......................................................................6
What are the implications of digital disruption to the delivery of the customer experience for
this organisation..........................................................................................................................7
Based upon 5&6 set out strategic recommendations on you could improve the customer
experience for customers of this organisation, to benefit them and the organisation itself. ......8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Customer experience refers to the consequence of the interactions that the customers have
made with the businesses by visiting its physical stores or business place or by navigating the
website of business to get the customers' service (Hoekstra., 2020). It is the perception of their
experience with the business enterprise. A positive customer experience helps the businesses in
promoting customer loyalty and facilitates retention of the customers and adds to the brand value
as well (De Keyser., 2020). The following report will discuss the best delivery of customer
experience by Tesco. It is a UK based multinational public limited company headquartered in
London , England. It is serving worldwide with more than 4000 stores, dealing in the products
like, groceries, clothing, home and food products. The report will cover the value proposition of
Tesco for its large customer base globally. It will also cover the six pillars of customers'
experience model in context with Tesco. Further the digital disruptions faced by Tesco in
delivering customers' experience and strategic recommendations to improve the same will also
be dealt with in this report.
TASK
Value Proposition of TESCO
Value proposition refers to the promise made by the company to benefit the customers by
delivering quality products and service to enhance the experience of customers. It makes the
product of company attractive and differentiate the value of product or service with that of its
competitors. In this manner, creation of value proposition helps the company in getting
competitive advantage by developing a large customer base. It mainly addresses the target
customers or target market segment of the company. The proposition of company must be unique
enough because it is a way of communicating the differentiation points to the target customers
(Yoo.,2020). In context with TESCO, for value proposition or to improve value offered to
customers, it uses different channels like in-store advertising, medial and email communication
directly with the customers to create customers' value and to enhance their experience. The
following are some specific value propositions of TESCO that have increased the customers'
value.
 Use of Clubcards : To understand its customers, TESCO used club card strategy to
develop competitive advantage over other supermarkets by making customers switched to

the company with the help of clubcards in 1995. The company provided club cards to its
frequent shopping customers. It helped the company in getting and storing the
information about the customers on the clubcard such as their buying pattern and
behaviour, money they spend etc. to send special offers to them to gain their loyalty and
enhance customers' value.
 E-commerce capture : TESCO Plc. has its own website i.e. www.tescoplc.com that it
provides regular information by to its existing as well as potential customers. TESCO
provides value by providing E services as well. It has its own mobile app to support
online shopping for the customers by providing home deliveries also. The company is
also using customer relationship management system to communicate with the customers
through email for providing frequently asked questions about its products. It also uses
social media marketing to get the feedback of customers. It enhances customers'
experience.
 Private Labels : To add value to its existing customers in its existing stores, TESCO
used private labels as “TESCO Value” for some of its products like bakery, dairy, meat ,
HBC , wine etc. It helped the company in customers' satisfaction and in enhanced
customers' experience.
 Customer Loyalty Programme : TESCO had also introduced a Customer Loyalty
programme by using big data of millions of customers to create a “Health score” for
baskets being sold at the shops. It helped the company in ensuring customers'
engagement, analysing their shopping trends and behaviour. It is a also a part of value
proposition of TESCO as it created customers' value (Bhattacharya., 2019).
How TESCO delivers positive customers' experience
Positive customers' experience can best be developed by maintaining strong interactions
with the customers. To develop a good customer experience, the customers should be listened
and their feedbacks must be collected and analysed to develop a better understanding of them
and their behaviour. Companies are required to first identify its target customers or target market
segment. The better customer experience leads to positive reviews to be received by the
company and reduces the chances of complaints and returns for the company (Alshurideh.,
2020). Benefits of delivering better customers' experience include increased customer loyalty and
satisfaction, effective marketing, positive reviews and recommendations.

In context with TESCO, it uses clear signs across the stores that are very clear to make
them read and understand carefully. Also, TESCO has a customer service desk near its stores.
Customers a go to this desk to make queries or refer any product issue. This customers service
satisfies the needs of customers and enhance their experience. The company ensures that the
customers do not have to wait much at its stores by offering prompt services. It brought a
positive change in customer satisfaction in terms of cleanlinesses of stores, product prices and
convenient shopping. Also, the company uses big data analytics to to have detailed analysis of
latest trends in consumer behaviour that help in gaining customer information to enhance
customer satisfaction and experience.
Target customers of TESCO
A target market or a target customer group is a specific market segment that the business
considers best appropriate to serve. These are the ones where the buying needs and behaviour of
the customers match with the products and services being offered by the businesses
(Mishra.,2021). Before creating value proposition or marketing strategies for enhancing
customer experience or customer satisfaction, companies must analyse the market and potential
customers. It needs to identify its target customers and target market segment to understand their
desired needs.
In context with TESCO, its target audience includes cost conscious individuals who are
interested in bargain, sales and value variety of choice. The target market segment of TESCO
includes individuals of all age categories including male and female that it offers its products to.
Its target customers are of low and middle income category to serve them best and increase
customer satisfaction to enhance customer experience. The company applies price positioning for
its customers in relation to its wide range of brand products. This is done so as to attract its
specific customer segment who are more price sensitive. So, TESCO's target customers consist
of all age groups who it offers its clothing products to and supports online home delivery as well.
Its target customers have facility to offer clothing, home and food products through company's
website that creates value proposition for them and enhance their experience.
From the above, it can be analysed that the company can not build value proposition and
cannot ensure positive experience without identifying its target customer group or target market
segment to analyse their buying behaviour and trends to satisfy them accordingly. It will provide

the company with better customer experience and effective value proposition by communication
and interacting with its target customers.
The Six Pillars of Customers' Experience Model
This customer experience model was developed to help the businesses in delivering a
positive and effective customer experience. This model consists of six pillars that are
interconnected and combined and assist the businesses in analysing that how effectively their
customers' experience is delivered throughout different channels and industries (Bashir.,2019).
The businesses that successfully understand all these pillars of creating a positive customer
experience are good at creating effective value proposition and delivering better consumer
experience. In context with TESCO, it can apply the following six pillars of consumer
experience in delivering a positive customer experience :
 Integrity : Businesses that show trustworthiness on a constant basis are said to carry the
integrity principles. Companies and their personnel should build trust and events that will
facilitate in increased integrity. According to the customer perception, organizations that
keep their promises as per value proposition are said to following integrity. Also,
customers consider those companies ethically strong who socially , morally conducts its
activities in discharging its duties. For example, the sustainability programmes conducted
by TESCO such as waste management, reduction in carbo footprints creates a sense of
trust in the customers about the integrity of company that in turn enhance customers'
experience.
 Resolution : This pillar states to turn the poor experience of customers into a positive
one. To ensure positive customer experience, it is imperative for the company to recover
the customer who have had bad experience form the company (Fülle., 2019). In spite of
the good procedures and processes, things can go wrong. The company should improve
its services or products that provided inconvenience to the customers, it will also make
the customers feel good about the company about the service recovery experience. In
context with Tesco, it must improve its customer service desk procedure and appoint a
polite and helpful individual to deliver the feedback taking services as it reported bad
experience of customers due to unethical behaviour of supervisor there.
 Expectations : It states to meet, manage and exceed the expectations of customers. The
top brands always set high standards and the customers also expect the same. With the

top brand companies like TESCO, customers have high expectations of satisfaction of
their needs based on the high standards set by the company. So, businesses strive to fulfil
those expectations sometimes beyond limit so as to keep brand promise and expectations
of targeted customers. For example, the target customers of TESCO have expectation of
quality products due to its brand awareness and technology adoption, so TESCO must
consider these expectations to fulfil effective customer experience.
 Empathy : It refers to understanding the circumstances and issues of customers to
establish connectivity or relationship with them. Empathy states to understand the
customers' experience emotionally. It will help in building empathy creating behaviours
(Lima., 2019). This will help the businesses in making the customers feel that they
understand their issues and feelings and provide solutions by understanding them. In
some countries, TESCO failed to understand the culture and trend differences of its
customers due to lack of relationship with them such as in US and Japan. It had to shut its
stores due to bad customers' experience there. So, in its target market, business should
develop connectivity to ensure better customer experience.
 Personalization : It refers to using individualized attention for emotional connection.
Effective personalization means making the customers feel more under control, more
valued and more interacted after first interaction (Gaspareto.,2020). They should try to
make the customers feel that they understand their personal circumstances on the basis of
their preferences and past interactions etc. Tesco must also initiate this pillar for
enhancing customer experience to expand it business by ensuring better customer
experience.
 Time and Efforts : Due to the lack of time, customers look for prompt fulfilment of their
needs. This makes the company remove the issues of delay in customers decision making
process and help them in achieving their individual objectives. It will increase customer
loyalty due to their nice experience with the company. Tesco should use this to get
competitive advantage in the market.
What are the implications of digital disruption to the delivery of the customer experience for this
organisation.

It is been identified that there are various digital disruptions to the delivery of the
customer experience for the Tesco company which is discussed below:
it is been observed that there are various interference in the customer experience where if the
customer is not able to login to the website because of the low server which is the biggest
disruption to the delivery of customer experience (Boulton., 2020).
The another digital disruption which can be faced by the Tesco is that at times the payment can
be made twice and its shows one time payment which leads to the bad experience for the
customers within the business organisation.
As each customer experience is different from each other and this can impact the customer
experience in different ways. It is identified that the digital disruption of the delivery of
customer experience includes loyalty apps which need to be certified by the company in
order to gain competitive advantage.
The E- receipts is one of the way in which customer can have digital disruption and can keep
record in the case of any mis- management and at the time of the payment it may be that the
payment is not made. This usually happens when there are a lot of customers using the
same website (Attaran., 2019).
Based upon 5&6 set out strategic recommendations on you could improve the customer
experience for customers of this organisation, to benefit them and the organisation itself.
It is recommended that the company can adopt the various strategies in order to increase
the customer experience within the organisation. There are various recommendations for the
company in order to increase and improve customer experience is as follows:
 It is very important for the management to behave ethically with its customers and find
out the resolution in order to gain the customer loyalty. As the customer might experience
something unusual which can impact in their experience and this can lead to
dissatisfaction. So in this case it is essential fro the Tesco to resolve the problem of
customer in order to gain their trust.
 As the customer has a high expectation with the delivery of the products ion the online
platforms. There are various issues which is faced by the customer in terms o the
payment methods which need to be resolved quickly by the Tesco company.
 The integrity plays the vital role in the customer experience within the business
organisation. It is very important for the manager to uphold the position and behave in

such a manner that the customers are able to feel that they are been invited and welcomed
on the great gestures (Kane., 2019). Also the behaviour of the staff members impacts a lot
in customer experience. The company need to practice sustainable development in order
to grab attention of customers.
 It is also recommended that the company can focus on the various digital strategies in
order to gain the attention of customer and improve their methods of delivering which
can focus on fast delivery of products so that the customer do not have to wait for the
longer duration.
CONCLUSION
From the above discussion, it has been concluded that value proposition helps the
companies in developing a large customer base by ensuring a better customer experience. For
example, TESCO has used various digital technologies and Internet capture and Tesco club cards
to ensure effective value proposition for the customers. The better customer experience includes
customer loyalty , effective marketing, addressal of the feedbacks of customers etc. But before
considering the value proposition and customer experience, TESCO has identified its target
market to analyse the consumer behaviour and buying patterns. TESCO has used some of the
pillars of customer experience model very effectively that has helped in brand loyalty for the
company. It had also faced some digital disruptions in payment procedure. But now, it is striving
to enhance its customer experience with effective use of technology to remove the issues of
digital disruption.

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