Customer Experience and Digital Disruption: A Case Study of Tesco

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.