Customer Experience in Tesco: Value Proposition, Segmentation, and Digital Disruption

MG526 Customer
Experience

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Value proposition of Tesco..........................................................................................................1
Value proposition manifested in customer experience................................................................2
Customer segmentation of Tesco.................................................................................................3
Six pillars of customer experience model....................................................................................4
Applying six pillars of customer experience model....................................................................5
Implication of digital disruption on delivering customer experience..........................................6
Recommendation.........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Good customer experience is essential for businesses to grow when customers are happy
they are more likely to become loyal customers for the business. Customers go through several
steps when they make a purchase. Companies try to improve customers experience on each step
because a good customer experience bring so many positives for the business (Pour and et.al.,
2021). The report will be based on Tesco which is one of the major British retailer. Tesco is a
multi national grocery and general merchandise retailer. Tesco follow a customer centric
approach and that's why the organisation always work make their efforts to provide best
experience to their customers. The report will also provide a recommendation on how Tesco can
improve the customer experience.
MAIN BODY
Value proposition of Tesco
Tesco is one of the largest super market chain in the world. Tesco was founded in 1919
and the company has created a relationship with their employees. Tesco is valuable because of
the recognition, trust and loyalty they stimulate in their consumers. The has company has always
made their maximum efforts to create and maintain their value in consumers mind. The company
understand its customers well it helps them to make effective and efficient strategies for the
market. The company reduced their monetary value which also helped Tesco to create a value
proposition. The company claimed that their prices are the lowest in the market and even after
the tough competition in market Tesco owns an value proposition of being the lowest prices
offerer in the market. Having a value proposition in the market is very important for the
companies as it help companies to grow by retaining customers (Huseynli, 2022).
Tesco is one of the organisation which is quick to adapt changes, the company has always
used latest technology and innovation to maintain their position in the market. Tesco used
ClubCard which also proved to be one of the best strategy used by them. ClubCard helped Tesco
to gain market insight. Tesco has been successful to capture the opportunities in the market their
e commerce website is one oof the example how Tesco quickly adapt required changes in the
market. Factors by which the company create a value proposition are discussed below -
1