Customer Experience and Digital Disruption: A Case Study of Tesco

This report discusses how Tesco increased their customer experience through various strategies and digital disruption. It includes the six pillars of customer experience model and the impact of digital tools on customer experience. The report covers Tesco's value proposition, customer segmentation, and recommendations for building an omni-channel strategy and delivering superior customer service.

MG526 Customer Experience

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Value proposition of TESCO.......................................................................................................3
Tesco customer experience..........................................................................................................4
Customers of Tesco....................................................................................................................4
Six pillars of customer experience model....................................................................................5
Tesco and six pillars of customer................................................................................................6
Digital disruption.........................................................................................................................6
CONCLUSION................................................................................................................................7
Recommendation.........................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
The present report was based on Tesco which is one of the famous British retail
company. The study has discussed about customer experience and its role in increasing the
marketing of the company. It is one of the important factor for business as customer are key
sources and if they are not satisfied then company will not be able to sustain. The report will
mainly focused on the way Tesco increase their customer experience by implementing various
strategy. Although model like Six Pillars will discussed in context of Tesco as well as impact
of digital tools will be elaborated in context of building customer experience.
MAIN BODY
Value proposition of TESCO
Tesco follow all business ethics in order to provide quality services to their customer as well as
to create good brand image in the market area. Along with this, it maintains transparent flow of
information with their employees so that they are aware about organizational goals and what has
been expected from them. Thus, this helps in increasing the loyalty of their employees.
Moreover, the organization also maintain trustful relation with their customer as if there is any
defect in product and bad service quality then consumer can complaint at service centre and
appropriate action has been taken by them (Becke and Jaakkola, 2020). Along with this, Tesco
care about their customer in areas related to price and value such as their products are set
according to income of the audience as they are the one to purchase. Thus, products and services
are made according to customer choice and preferences. Moreover, there are multiple type of
products are available under one roof as well as there are multiple channels including hyper
markets and stores as well as online. This way of marketing provides various type of product and
services to their customer at low cost. Along with this, the company has adapted its value
proposition to fit on the go customer by introducing virtual store it is able to build its new
localised value proposition by providing the variety of products to customer by providing the
product at low cost at convenient location. The Home plus virtual store has helped the
organization in developing a strong brand image and it improve the experience of value
proposition. Thus, it sells to their customer by offering the value of extreme convenience that
consume requires by using advance technology and online delivery as well as quality products.

Tesco customer experience
The company aims at providing their customer with quality service and it values are also related
to building healthy relation with them as they are key source of running business. Along with
this, it has set programme such as Sunflower Lanyards available to all the customer and it allow
them to receive additional assistance in the store so that it can able to get products quickly.
Through participating in this programme customer can contact to local store and pick up their
lanyard during next shopping trip. This way of customer service has improved their experience
with the company as well as build their trust (Witell and et.al., 2020).
Moreover, the company also make use of customer management tools in order to analysis the
taste and preference while purchasing. Along with this, due to this data it is able to make
according to customer needs which helps in increasing overall sales of company as well as
increase loyalty of them towards organization. Moreover, during the time of pandemic taste has
been shift and there has been increase in online sales compare to store and they were also
looking for healthy food. This, perspective have been understood by Tesco has segmented their
customer and open slots for both type of purchaser in online as well as offline store.
Customers of Tesco
Segmentation of customer is very much important for the company in order to increase their
sales as well as to understand the marketing current trends. Although the product and services
given by Tesco cannot be attractive to every customer as each of them have different needs so
in order to engage with them it is important for the organization to segment the market and
targets its practice. Along with this, segmentation is known as dividing the customer on the
basis of geographic, demographic, psychographic and behavioural base (Wibowo and et.al.,
2020). On the basis of geographic the company is targeting UK and 13 countries of market in
order to expand their business as well as to build brand image. It targets both urban and rural
areas so that it can maximize their customer range not only this it is retail company so it is
targeting all age categories as well a male and female. In addition to the this, on the basis of
demographics it has been targeting customer of lower as well as middle level income. The
company is mainly focusing on family as there most of the products are set according to their
needs and wants. Moreover, Tesco products and services shows that it is focus on cost
conscious customer as they are interested in bargaining for sales as well as add variety of choice.

It is related to company value as it is focusing on giving the customer quality service thus
segmentation will allow organization to targets and focus on specific consumer. In addition to
this, in order to improve the customer it is important for Tesco to segment so that it give better
attention to them.
Six pillars of customer experience model
The six pillars of the customer experience need to be fulfilled as it helps company in
understanding how well their audience has been delivered across channel and industries. I
Although every company has to demonstrate these pillars so that it can increase their brand
name in the market area.
Integrity: It is one of the most important part to build healthy relation with audience. The
company need to provide them with right information as well as it the duty of the company to
build integrity by conducting customer loyalty programme. Although from consumer point of
view business that delivers trust full products and services are key to integrity.
Resolution: Each organization should have motto of turning their poor experience into great one
and it is important to recover customer that have poor experience (Mclean, Al-Nabhani and
Wilson, 2018). The company can deal with by using appropriate marketing strategy that focus
clearly on customer as well as through apologising to them. Thus, acting them towards urgency
is successful resolution.
Expectations: The one of the best way is to meet and manage the customer experience in order
to satisfy their high expectations. Although most of the big brands focus on meeting the needs
of their targeted audience so that it can interact with them.
Empathy: One of the most important pillar is to understand customer circumstances so that
strong relationship with them can be build. This approach allow company to show that it know
how customer feels and give solutions because of the understanding (Shi and et.al., 2020).
Personalization: The organization need to understand the preference of their customer and make
products according to them. This will allow the organization to connect with them more and to
grab their attention. Along with this, great personalization is making customer feel more in
control and valued after their interaction.
Time and efforts: The company need to remove the obstacles which delays in satisfying the
needs of customer. Thus, organization should make use of competitive advantage in order to cut
costs.

Tesco and six pillars of customer
The organization maintain their integrity through sharing relevant information about
companies products to their customer . Along with this, it also maintain transparency with the
customer in order to grab their attention. However, in order to build the experience of customer
Tesco makes product according to the need of their customer which has helped in building
their interaction. In addition to this, it has also have complaint line which will help in resolving
their issues related to delay in service or faulty product (McColl-Kennedy and et.al., 2019).
Furthermore, Tesco conduct feedback session online and in store so that it is able to gather
information related to customer needs and current market trends. This way of gathering
information allows the organization to fulfil the needs of the customer and meet their
expectation. Although the company is following all the business ethics in order to avoid the
intervention of the government as well as to connect with the customer. However, it has been
found that organization which value business ethics it has higher chances that customer stay
loyal to them.
Although valuing customer is very important for running the business as well as it helps
in connecting with them. Tesco manufacture products according to the needs of audience which
contributes in increasing their overall sales as well as to maintain their profitability. When the
products full fill the needs of the customer it helps in increasing their loyalty towards firm.
Tesco is a retail company so it has to follow the new markets trends as there is high competition
as well as there are many substitute of products available in the market area. Tesco also put
time and effort in their products and services which helps in reducing the obstacles in customer
experience as well as to bit the competitive advantage (Keiningham and et.al., 2020). Thus,
Tesco follow all these pillars in order to be successful in the market area and to connect more
with the customer as they are key source in business. Moreover, these six pillars helps the
company in improving the customer cycle as well as contribute in building profitability of firm.
Digital disruption
It is one of the hot topic going in the market area and it has been changing with time so in order
to meet the new market condition it is important for the company to make use of advance
technology so that it can sustain in the market area (Gilboa, Seger-Guttmann and Mimran, 2019).
Along with this, it helps the organization to share the information related to business, customer
and products in the market area. Along with this, some of the factor that contributes in digital

transformation include mobile, cloud computing and artificial intelligence. One of the most
famous company making use of it is known as Amazon. This organization has vast and varied
inventory as well as thousand of vendors and it mainly done their business through online
services. In addition to this, Tesco has also being making use of online sites in order to share
their information regarding company and the products and services sold by them. This way of
doing the business helps the organization in gathering information regarding customer choice
and preferences and it directly contributes in increasing the customer experience. Although
technology has been continuously evolving so it is important for organization to deal with the
radical change in the business. Each customer has there unique interaction so company need to
know about the experience and personalised journey based on individual needs.
Loyalty apps: It refers to loyalty scheme that company offers to customer when there are
frequent buyer. It has been well known fact that psychological connection to the brand the
rewards gained and the free items received in return. All these schemes increase sales and it
create a impact on the customer to stay loyal with them (Bueno and et.al., 2019). This is one of
the best marketing schemes in order to increase the sales as well as to build good brand name in
the market area. In addition to this, Tesco has made their own application based on loyalty
model and customer can make use of that for purchasing the food and to earn stars so that it
can gain exclusive rewards like offer and discount. With the help of this application customer
can pre order stuff and pay for them digitally as well as product will be deliver to them. This
provide customer with flexibility and allow them to be more organised. Thus, is the best ways
to understand the need of the targeted audience as well as to understand their purchasing cycle.
It will also contribute in building good brand image in the market and to reduce competition.
E Receipts: This is one of the another latest technological method which allow customer to
have proof about their shopping in store (De Keysers and et.al., 2020). Along with this, it is
becoming more famous in retail store where customer has to provide their email address and
there receipt will be send to them through email. This will help the consumer in targeting
campaigns with similar products related to purchase and it is valuable for them. Although it
helps the customer analytics to collected extra information and to analysis their behaviour and
trends through multi channels.

CONCLUSION
From the above report it has been concluded that it is important for organization to take care of
their customer as well as to understand their needs and preferences. Along with this, it helps in
increasing the performance of the organization in effective manner by building good brand
image in front of customer. The above report has described about the value proposition of Tesco
and the way it use its business ethics in order to increase their customer experiences. In addition
to this, it has also concluded on Six pillars of customer model and the way it helps the company
in improving their customer range through connecting with them. Lastly, it has concluded on the
impact of digital tool in order to satisfy the customer needs.
Recommendation
 The customer experience journey starts from the point they interact with the business as
well as through website, referral or an advertisement. It is to be recommended to Tesco
that building Omni channel strategy as it is very crucial to help the organization in order
to provide crucial insight about customer interaction and their behaviour through
purchase life cycle. Although this channel include various social and digital sites that
helps in increasing the sales as well as providing customer support. Although many
customer except an omni channel experience with seamless service between
communication methods (Becker and Jaakkola, 2020). Along with this, customer except
that every interaction with business should be great and it have journey across all
channels through online and offline is the key ominchannel customer experience.
 It is to recommended to company that it should deliver superior customer services in
order to enhance the client experience as well as it need to be evaluated every moment of
the consumer with the company. Along with this, it is important that organization
should be customer centric and not company focused if it wants to increase their
performance. Although good service levels up customer satisfaction and it contributes in
creating positive environment as well as the best way to adopt this services is to make
use of customer engagement strategy to provide real time support (Chylinski and et.al.,
2020). Moreover, it is to be recommended to Tesco that it should make use of digital
customer engagement tools to increase client satisfaction and experience. The regular

training should be given to the customer team and they should have knowledge about
products as it will help in increasing the sales of organization.

REFERENCES
Books and journals
Becker, L. and Jaakkola, E., 2020. Customer experience: fundamental premises and implications
for research. Journal of the Academy of Marketing Science, 48(4), pp.630-648.
Bueno, E.V. and et.al., 2019. Measuring customer experience in service: A systematic
review. The Service Industries Journal, 39(11-12), pp.779-798.
Chylinski, M. and et.al., 2020. Augmented reality marketing: A technology-enabled approach to
situated customer experience. Australasian Marketing Journal (AMJ), 28(4), pp.374-384.
De Keyser, A. and et.al., 2020. Moving the customer experience field forward: introducing the
touchpoints, context, qualities (TCQ) nomenclature. Journal of Service Research, 23(4), pp.433-
455.
Gilboa, S., Seger-Guttmann, T. and Mimran, O., 2019. The unique role of relationship marketing
in small businesses’ customer experience. Journal of Retailing and Consumer Services, 51,
pp.152-164.
Keiningham, T and et.al., 2020. Customer experience driven business model
innovation. Journal of Business Research, 116, pp.431-440.
McColl-Kennedy, J.R. and et.al., 2019. Gaining customer experience insights that
matter. Journal of Service Research, 22(1), pp.8-26.
Mclean, G., Al-Nabhani, K. and Wilson, A., 2018. Developing a mobile applications customer
experience model (MACE)-implications for retailers. Journal of Business Research, 85, pp.325-
336.
Shi, S. and et.al., 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.
Siebert, A., Gopaldas, A., Lindridge, A. and Simões, C., 2020. Customer experience journeys:
Loyalty loops versus involvement spirals. Journal of Marketing, 84(4), pp.45-66.
Wibowo, A. and et.al., 2020. Customer behavior as an outcome of social media marketing: The
role of social media marketing activity and customer experience. Sustainability, 13(1), p.189.
Witell, L. and et.al., 2020. Characterizing customer experience management in business
markets. Journal of Business Research, 116, pp.420-430.
1

Online references
A, B., 2018. [Online]. Available through <>
2