Analyzing Customer Loyalty Factors: A Tesco Case Study Report

This case study explores the factors responsible for creating customer loyalty in Tesco. It identifies key elements such as providing high-quality products and services, resolving customer complaints efficiently, ensuring convenience, offering quick service, maintaining customer contact, leveraging customer feedback, implementing loyalty programs, and staying relevant to customer needs. The analysis emphasizes that customer loyalty is crucial for sustaining organizational performance, understanding customer needs, targeting valuable customers, and fostering positive relationships. By prioritizing these factors, Tesco can enhance customer satisfaction, improve product offerings, and ultimately drive revenue growth. The study concludes that customer loyalty is an ongoing emotional connection that leads to increased engagement and repeat purchases, highlighting its importance as a valuable asset for any organization. Desklib provides access to a wide range of solved assignments and past papers for students.

Case Study

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Factors responsible for creating customer loyalty in TESCO.....................................................3
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The customer loyalty is defined an ongoing emotional relationship between company and
customer and it also refer to manifesting itself by how willing a customer is to engaage. Due to
keeping effective relationship with customer the sale of company product are easily increased at
maximum level for long time. The selected company is TESCO and the head office of this firm
is situated in United Kingdom (Boateng, 2018). The organization is dealing with wide range of
products which includes grocery items, home appliances, furniture, telecommunications and
others. The report will covers factors responsible for creating customer loyalty in selected
organization. Due to the effective analysis of various factors firm easily understand the value of
customers and also realize that which type of product is liked by customers.
TASK
Factors responsible for creating customer loyalty in TESCO
 Providing best quality product and services – It is one of the most important factor for
developing customer loyalty in effective manner. Because due to providing best quality
product and services customers are easily get loyal towards company for long time. With
help of proividing high quality goods and services, company easily establisahed brand
image in various locations effectively and also able to sustain their profit margin at
maximum level for long time. In today's time customers are highly focusing on buying
valuable and quality goods at low cost. In context to TESCO, it is one of the company
who is followinh these two elements. Therefore here due to providing these type of
facility customers easily spread positive word of mouth about firm and in this way
customers are easily repeated many times for availing there goods and services. When
quality is sustained in product then definitely the particular product is highly beneficial
for customers. For maintaining the quality in their service this organization used various
types of technology in their stores.
 Resolving customer complaints – It is also one of the factor which is responsible for
developing loyalty of customers towards organization effectively. For this it is necessary
for the management of TESCO that they must keep specialized employees or department
for solving the problems and queries of customers in effective manner. Due to solving the
problems of customers in time, they think that it is a highly reputated and reliable brand.

Due to having this type of belief the reach of the TESCO is enhanced at higher rate at
different locations which leads to increase their profit margin and market share
effectively. With help of solving the issues of customer value for the company product
and services are highly increased in customer mind. In this way the positive relationship
between employee and customer are effectively sustained for long time. With help of
solving the complaints of customers organization easily understand that where
improvement is needed in services and goods. Then according to that product is
redeveloped according to customer wants and desires. The other benefit is that with help
of solving their difficulties in time, the satsfaction level of users are highly enhanced. For
resolving the queries or problems of customers quickly management of TESCO used
various apps and electronic equipments effectively.
 Convenience – It is also one of the factor which is essential for developing strong
customer loyalty within low time (DAM and DAM, 2021). For increasing the convience
of customers it is necessary for management of TESCO that they must establish strong
infrstructure and supply chain management through online and offline mode. In aspect of
online mode they need to use varuious digital plaatforms, technology and apps which
leads to increase the awareness or popularity of their product at large level. Due to the
effective use of online service all types of customers are able to various goods and
services within low time. Because in today's time mostly customers are likely to buy the
products through online mode because in this facility payment are done quickly and
product are purchased within low time. In aspect of offline mode they need to establish
their stores in various locations and in this way distance are highly decreased for
customers for buying the product.
 Quick service – It is also one of the factor which assist the organization for maintaining
the loyalty of customers towards their services and products in long term. In todays time
quick service are highly important for sustaining the company reputation in market
effectively. But this is possible only when the TESCO used the various advanced
technology in their operational and other activities. Due to the effective use of technology
organization is able to deliver their goods to all customer segments without any type of
delay. The various types of components which are comes under the category of quick
service are use of social media, digital platforms and various apps.

 Maintain touch with customers – It is one of the very important factor which is
required to consider by organization for sustaining the popularity of their product and
services in their customers mind effectively. For keeping the touch with customers
TESCO are used various channels through online mode. Keeping existing consumers
informed about new goods, promotions and any other relevant data which impacts
services and products a consumer generally seeks with that business. Various tools such
as use of social media, official websites, online advertising and others are responsible for
maintaining contact with prospective and establishing communication with consumer
within the digital platform. These type of marketing tools support various digital
communication method effectively or also integrated with popular email, SMS and social
media. Due to the effective use of these tools organization is able to deliver the reliable
information and beneficial schemes regarding their products to customers quickly.
 Take benefit of customer feedback – It is also one of the factor which influences the
customer loyalty towards company in effective manner (Elizar, Indrawati and Syah,
2020). In this process client directly provide feedback to employees and due to providing
feedback organization easily understand that which type of problem are faced by
customers in their product and services. Company must be able to capture and act on
feedback from their previous clients. Many of todays top customer relationship
management tool which includes salesforce, microsoft CRM and others are the perfect
way to gather and centralize customer feedback from post of social media, email survey,
customer calls, suggestion boxes and phone survey. With help of analysing various types
of feedback and developing a strategic plan effectively, the management of TESCO
easily understand that what they required to adjust for retaining those type of customers.
 Show appreciation with loyalty program – If consumers did not have tremendous
amount of cash by participating in loyalty progrm, even small rewards also shows the
business appreciation for its clients. Facilitating customer only promotions and discounts
is an easiest and effective way to incentivize those purchasers to comeback. These
programmes also provides a organization the means to collect beneficial information
which includes identify the highly valuable consumers and those at risk of conducting
business elsewhere. In addition to this the program of loyalty also encouraged the

consumers to repeat their visit in TESCO store and also aims to reach a certain discount
or goals.
 Stay relevant to the customers - A business must highlight its ability for evolving with
the market and also for meet the desires of customers in order to keep consumers
engaged. It is not necessary that products required dramatic changes but they required
enough to show the organization is keeping up with customer need and current event. It
also refer to providing reliable and accurate data to users which leads to sustain the
goodwill or reputation of organization in market for long time. Due to providing reliable
information the value and popularity of company's products are strongly developed for
long time.
After the evaluation of above data, it is understood that all these factors are plays the
major role for sustaining the performance and productivity of organization at maximum level.
With help of all these factors organization is able to identify the real wants and needs of
customers in effective manner. The other advantage for considering these type of factors is that
they assist the firm to target those type of users who are highly valuable and benefical for their
business, product and services. Due to targeting these type of customers company easily generate
their revenue at higher rate at maximum level in low time (Erlangga and Erlangga, 2021). With
help of considering all this factors organization also able to develop positive relations with
clients for long time. With help of keeping positive relations, customers are able to share their
thoughts or feedback directly to organization. Customer loyalty is also important for maintaining
positive relationship between employee and employer for long time. With help of keeping
positive relations organization is able to identify the real wants and desires of customers quickly.
In this way the needs and desires of all customer segments are easily fulfilled in time.
Then in this way firm easily understand that which type of improvement is required in
their services and products. Then according to that product are redesigned and produced in high
quality which is important and beneficial for customers. The customer loyalty is defined an
ongoing emotional relationship between company and customer and it also refer to manifesting
itself by how willing a customer is to engaage. Due to keeping effective relationship with
customer the sale of company product are easily increased at maximum level for long time. The
customer loyal is about a person’s willingness to interact with and buy from a specific company
on an ongoing basis. If you can create memorable, positive experiences for your customers,

you’ll increase the chances of them not only coming back for more, but spending more per
purchase. The name of those factors which is responsible for influencing the customer loyalty are
Providing best quality product, Resolving customer complaints , Quick service, Convenience,
Take benefit of customer feedback, and Maintain touch with customers. Customer loyalty can
take time to get right, but loyal customers pay dividends once dialed in. From increased
engagement to reaching previously-unidentified sales opportunities, here are five of the top
benefits you can achieve by focusing on customer loyalty.
Due to considering all these factors it is necessaary for organization that they must high
quality products to users with affordable price (Kanakaratne, Bray and Robson, 2020). Due to
facilitating goods in affordable price customers are easily attracted in large for buying the
various products and services. In this way the awarness of TESCO goods and services are
effectively sustained in market for long time. For any organization customer is the most valuable
asset for run their activities smoothly and also for sustaining their popularity in market. The
customer loyalty is defined an ongoing emotional relationship between company and customer
and it also refer to manifesting itself by how willing a customer is to engaage. Due to keeping
strong relationship company always tried to solve the problems of customers in time. Due to
sustaining customer loyalty organization is able to fulfil the requirements of customers in time.
Due to fulfiling the needs of customers in time the value and awareness of their goods and
services are effectively spread in various locations within low time. Due to maintaining the
loyalty of customers effectively organization is able to enhance their growth and profit margin at
maximum level within low time.

CONCLUSION
From the above analysis it concludes that customer loyalty plays the major role in the
activities of organization. Due to maintaining the loyalty of customers effectively organization is
able to enhance their growth and profit margin at maximum level within low time. Due to
fulfiling the needs of customers in time the value and awareness of their goods and services are
effectively spread in various locations within low time. The report will covers factors responsible
for creating customer loyalty in selected organization. With help of considering all these factors
firm is able to increase the visit of their customers in their stores and in their official portals
many times.

REFERENCES
Books and Journals
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Customer Trust, and Customer Loyalty in Service of Paediatric Polyclinic Over Private
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Erlangga, H. and Erlangga, H., 2021. Did Brand Perceived Quality, Image Product And Place
Convenience Influence Customer Loyalty Through Unique Value Proposition?. Journal
of Contemporary Issues in Business and Government, 27(1), pp.2854-2867.
Kanakaratne, M.D.S., Bray, J. and Robson, J., 2020. The influence of national culture and
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Khairawati, S., 2020. Effect of customer loyalty program on customer satisfaction and its impact
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Shahid Iqbal, M., Ul Hassan, M. and Habibah, U., 2018. Impact of self-service technology (SST)
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