MG526 Customer Experience: Strategic Recommendations for ALDI

This report provides a comprehensive analysis of ALDI's customer experience, examining its value proposition, how it delivers customer satisfaction, and the demographics of its customer base. It explores the application of the Six Pillars of Customer Experience model to ALDI, evaluating the implications of digital disruption on its customer service delivery. The report also offers strategic recommendations for improving the customer experience, benefiting both ALDI and its customers. The analysis covers key aspects such as personalization, integrity, expectations, resolution, and the impact of digital tools. The report aims to provide insights into how ALDI can further enhance its customer relationships and market position through improved customer experience strategies.

Customer Experience

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1 The value proposition of the selected organisation, ALDI................................................3
TASK 2 Manifestation of customer experience delivery...............................................................4
TASK 3 Kinds of customers in key demographics..........................................................................5
TASK 4 The Six Pillars Of Customer Experience Model with respect to the selected organisation,
ALDI................................................................................................................................................6
TASK 6 Implications of digital disruption to the delivery of the customer experience for the
selected organisation, ALDI. ..........................................................................................................7
TASK 7 Strategic recommendations on how customer experience can be improved of
organisation, ALDI, to benefit them and the organisation itself......................................................8
CONCLUSION................................................................................................................................9
REFERNCES:................................................................................................................................10
Books and Journals:..................................................................................................................10

INTRODUCTION
The customers are considered as vital part of an organisation and to work without any
disruption customer satisfaction is very important. The managers aim on making operation and
services easy for consumers so that they are not facing any problem. It is highly required to
manage consumers and their experiences, for which organisation aims on working through
appropriate model which gives suitable strategies and policies. These strategies and policies can
be used for making operations easy to go which will bring more and more consumers and as a
result they will be satisfied thus increasing sales and revenue. The selected organisation, ALDI is
a multinational organisation founded by the German families, giving tough competition to
TRSCO and TESLA. It is a chained departmental store dealing in wide range of daily
commodities offered at discounted rates (Becker and Jaakkola 2020). The report is a study based
on value proposition of consumers of ALDI and how the experience can be made evident so that
consumers are satisfied. The report also explains the types of consumers which are present in a
particular region and are affecting the process of operations. Also the study puts light on what
problems are faced in delivering the goods to the consumers by using digital platform. The
channel of distribution also sometimes acts as barrier which hampers the process.
MAIN BODY
TASK 1 The value proposition of the selected organisation, ALDI.
Value proposition gives the consumer a reason and usefulness into product so that,
customers choose the company products rather than competitors. Setting a value into brand
products and business practices, it will results in more of customer engagement for ALDI. The
reason which will make consumers ready to buy a product of a particular organisation and in
what frequency is termed with value proposition of an organisation. In ALDI, staff and store
management team is focused on providing goods at a lower rate as compared to that of existing
substitute brands. The team ensures in providing commodities at an approximate of 30% less
value as compared to that of supermarkets in the same geographical region. The organisation has
made it a mission of providing required and essential commodities at a cheaper rate (Bolton and
Zaki 2018).The customers of ALDI wants products into less price for which they are ready to
make sacrifice, for that instance, ALDI has its aims and target to these customers by selling
product at low cost compares to other competitors. Initially the organisation was not performing

that well as they were not focused on maintaining the value proposition but slowly and gradually,
ALDI made changes in its strategies which resulted in strengthening its roots and creating a major
positive impact in the market. The value proposition of ALDI is focused on expanding the market
reach in a manner that product and its whole line is known to the consumers and most of them
have a vast reach in market. It offers a wide range of products which satisfy all and every needs
of consumers resulting in higher trust and recognised brand value. ALDI has developed
marketing programme by entering into national brand products with the aim to minimise prices
and run on the model of “Hard Discount” which tends to be effective for customers to purchase
with ALDI.
The advertisements which are available through media are captivating which makes
consumer willing to buy a product and resulting in higher sales and revenue. To cope up with
maintaining the value proposition staff and support team is constantly working by keeping in
mind that outlets are continuously stocked up with the inventory so that consumers are not facing
any issues and sale is also not bounded (Brun, Rajaobelina and Berthiaume 2017). Along with
this focus is also made on clearing the problems by taking appropriate measures. This can be
done through staying connected with consumers and timely asking for feedbacks so that cordial
relations are maintained.
Keeping all these factors in mind it is required by management team of ALDI to prepare a
systematic plan which will result in carrying out the process in smooth and efficient manner. All
this has resulted in depicting a good image of the organisation in eyes of market and potential
consumers. The Company run its digital programmes and enter into Chicago market which
becomes the success for the company by creating a new proposition of low price beating.
TASK 2 Manifestation of customer experience delivery.
The customer experience is term which defines all kinds of behaviours of customers
whether it is satisfaction and disappointed while purchasing any product or service. How a
customer feels or considers usefulness of product is known as customer experience. It start from
consumption stage and end to its procurement. It is considered as an obvious and apparent
process which aims on clearing the purpose and goal which is determined for consumer
satisfaction. The value proposition of consumers of ALDI as discussed earlier aims on lowering
the prices as major population of consumers are attracted towards discounted prices and items.
Fulfilling this ALDI is also providing the same, this makes the buyers receive good quality

products at a lower price and that too with their tastes and preferences (Bustamante and Rubio
2017). In order to give a tough competition to its rivals and sustain with the brand value they are
aimed on providing goods at a far cheaper rates as compared to that of competitors, Despite of
providing goods at a cheaper rate they are also not compromising with the quality which itself
acts in making good image in eyes of consumers.
The consumer experience and the delivery process can be manifested by several
undermentioned ways which can be seen as: Organising Customer Delivery Program: To enhance customer delivery and working on
the shortcomings which is making ALDI lack behind can be improved by organising
programmes which provides accurate support and information. Time to time customer
delivery programmes are required to be organised which will improve knowledge of
delivery persons and of the staff as well which will improve the conditions. Make an enchanting social media strategy: Along with improvised delivery
programmes, looking towards the modernisation and increased shift of society towards
social media, it becomes obvious to remain active on social media and gain attention
(Fernandes and Pinto 2019). The team of ALDI is focused on catering attention of social
media groups and individuals who are active on it by making appropriate strategies which
can involve more buyers by making them aware and known to eye catchy schemes and
discounts. Attracting potential consumers focus: There are times when people are hesitant to
become consumers as they are not having complete knowledge of what is served by ALDI
and in what manner. To overcome this trouble it is highly required to make them aware
so that people who are to be consumers become loyal and long lasting consumers.
 Creation of familiar relationship with consumers: In today's era consumers are ready to
pay extra when they are served cordially. For this ALDI is focused on maintaining good
terms with consumers and for this purpose they are meeting all the demands which will
help in improving the existing conditions of the business (Flavián, Ibáñez-Sánchez and
Orús 2019). When relations are familiar with individuals it will raise consumer
satisfaction which will lead to enhanced consumer loyalty and recognised brand name.

TASK 3 Kinds of customers in key demographics.
In every region there are kinds of consumers who are existing and for this purpose it
becomes essential to study them and develop an understanding which can work in making and
attracting their interests. In ALDI customer demographics is focused as when tastes, preferences,
choices and perceptions of the targeted consumers are studied, it becomes easy to meet them
which will increase sales and side by side the brand value also.
The basis on which kinds of customers are segregated can be seen as:
On the basis of gender: Tastes and preferences of an individual differs on the basis of their
gender. Males and Females have their own shopping choices which affects the operational
process of ALDI. This to meet requirements of both the groups and to keep them satisfied it is
required to study them and deal with the same ideas (Jain, Aagja and Bagdare 2017).
On the basis of age: As the age group( children form 1-10, middle teenage 11-20 adults 20- 35
aged 36 and above) changes buying interests also changes, looking this and in respect to meet
this it is required to keep in mind what every age group needs and requires for their existence.
When expectations of every age group is met it will lead to increase in consumers. ALDI aims to
provide products and customers for every age group started from kids to adult sections. As the
company targets is to provide diversified range of products under one roof.
On the basis of income: Income decides buying capacity of an individual and viewing this ALDI
is offering its products at varied rates which makes it easy for every income group to purchase
and meet their daily requirements. When majority of consumers are reached, it will increase sales.
But if organisation faces fewer sales and less number of orders, they start treating the potential
customers more attentively which are higher section that would make more profit for the
company.
TASK 4 The Six Pillars Of Customer Experience Model with respect to the
selected organisation, ALDI.
The consumers requires higher satisfaction and when they meet this then only it is
possible that they are attracted towards the brand (Kandampully, Zhang 2020). In order to
improve the experience of consumers it is needed to follow a respective model which is specific
and can be applied to an organisation. There are several methods which can be used for
improving consumer experience but one of the highly recognised model which can be used is The

Six Pillars Of Customer Experience. Under this methodology, ALDI follows a list of
characteristics which can be seen as:
Personalization: This trait refers to creating an impact on the consumers personally by
maintaining cordial relationship with them so that loyalty concerns can be initiated. This will help
in enhancing goodwill. ALDI make their customer engagement by making communication
though digital channels trough which their price are relatively get cheaper as per customers want
and products are more as per customer desires.
Integrity: This trait of the model focuses on building connections as well as increasing trust
among them so that credible conditions related. This will also help in easy approach to market
whenever a new product or scheme is launched. ALDI perform this by generating loyalty scheme
cards or though Emails or Text in order to make their customer aware (Shields, Shapiro, and
Rowan, 2017)
Expectations: This trait is very vital as it revolves around meeting the needs and desires of the
consumer group in such a way that they are studied and their area of interest is known. When
there desires and wishes are known it is easy for a brand to work accordingly and cater their
expectations. This will result in high sales and recognition. By making active participation of
customers in ALDI, they are easily fulfilling expectations of customers through feedbacks and AI
interference technologies (Smet, 2018)
.Resolution: This trait can also be called as after sales services as the organisation also works for
gaining appropriate suggestions and feedbacks of what they are offering so that proper efforts can
be taken to resolve them and creating good image in eyes of consumers.
Time and Effort: The consumers would not be liking if their time is wasted and would definitely
shift to another substitute brand (Kranzbühler, Teerling and Et.al 2018). To overcome this the
management is tried to be very simpler and feasible so that customer efforts are reduced and they
get their delivery quick.
Empathy: The trait describes how a vital relation can be build between an organisation and
consumers so that in any and every situation, the organisation is not facing any issues in easy
operational process. The market situations are analysed and help can be rendered as and when
needed.
TASK 5 Critically apply The Six Pillars Of Customer Experience Model to
the selected organisation, ALDI.

When ALDI or any other entity is using this approach it will be beneficial to them as they
can manage their consumers in a proper manner. The Six Pillars Of Customer Experience model
has given six different characteristics which are appropriate when used in managing consumers as
they are able to satisfy the needs and desires of a consumer (Kuppelwieser and Klaus 2021). The
six traits Personalization, Integrity, Expectations, Resolution, Time and Effort, Empathy when
used by the support and management team in context to consumer will easily help in catering
their interests and working accordingly. This will male them happy and satisfied. In ALDI
managers started working for consumer demand after a point of time and since then they are
flourishing and making good profits.
TASK 6 Implications of digital disruption to the delivery of the customer
experience for the selected organisation, ALDI.
Digital disruption is a change into business models and technologies which demands for
new and modern up gradation due to which it impact on excising product and business practices.
People gets influence by new techniques and put their expectation on company which disturb
whole of market. In an organisation which is multinational and has its branches scattered in
different channels of distribution, sometimes it becomes hard for businesses to meet expectations
of business. When delivery is carried through digital media, there are chances of disruptions
which are caused because of technology (McColl-Kennedy,Neely and Et.al 2019). When an
organisation faces digital disruption it gives an idea that needs and preferences of consumers are
shifting to any other brand. This emerges a need to change the work culture and method of
treating the consumers. When digital disruption is caused, proper policies are required to be
brought and amended so that consumers are kept happy and amused, while creating new and
better opportunities to make new and loyal consumers. To implicate the digital disruption by
managers of ALDI can be proceeded by bringing changes in existing procedures so that supply
chain and its management is improvised making the operational technology clearly visible.
As digital disruption is prevalent, there emerges a need to divert their focus on to digital
platform, it is affecting customer service in positive way as it involve close communication of
customer doubts and provide solution into less time. Digital platforms are essential to know about
potential customer and make them retain. As a large number of people are present their. As
social media and digital platforms has become a major part of people's life, it becomes ALDI or
any other organisation to use it and reach to consumers. Reaching consumers by digital media

will be more easy and thus help in building good relations. Going digitally makes business and its
working process more proactive which will lead in serving consumers at a better rate. The new
and innovative technologies will be easily told to consumers which will improve the brand value.
This will increase the number of consumers and their journey as well. Improving digitally will
help the organisation and consumers to adapt and bring in new techniques which will promote
loyalty and shopping experience.
TASK 7 Strategic recommendations on how customer experience can be
improved of organisation, ALDI, to benefit them and the organisation
itself.
It is identified that customers are the key element of success and growth of ALDI. So
that's why they need to improve their activities in order to maximize customers satisfaction. The
three main basic reason for improving customers experience that are increasing up selling and
cross selling, customer satisfaction and customer retention (Rather 2020). They need to
effectively use six pillar strategies and address all the promises company has made with the
customers by taking following points into consideration:
 It is recommended that ALDI should focus on improvement on their products and services
so that they can increase customer loyalty. They need to put focus on personalization by
regularly connect with customers.
 They should focus on delivering superior customers services to their customers so that
they can feel very important and do not switch to other companies.
 It is also suggested that they should identifying and analysing the taste and preference of
their customers so that they can satisfy their wants and desires.
 Marketing team must build effective customers support in order to handle them with care
by resolving issues and doubts related to products. Therefore, the company needs to make
more focus on digital platforms so that, doubts and complexity will remove easily for
customers.
 Developing soft skills and polite behaviour make the company more beneficial In gaining
customer retention. it is essential to undertake customers behaviour and provide them
reliable assistance (Roy,Nguyen and Melewar 2017).

 Artificial intelligence plays vital role in connecting with customers closely by answering
their response in a positive way.
CONCLUSION
The report studied above describes how ALDI is working in managing its consumers
which is in itself an important deed as without consumers an organisation cannot work. Thus to
keep them satisfied and happy the organisation is required to follow appropriate model which
ALDI is following as seen above. In the end it can be concluded by saying that consumers are
required to be studied in a manner that their needs and desires can be appropriately studied. After
categorising the demographics actions can be taken accordingly.

REFERNCES:
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.
Bolton, R.N.,and Zaki, M., 2018. Customer experience challenges: bringing together digital,
physical and social realms. Journal of Service Management.
Brun, I., Rajaobelina, L., and Berthiaume, B., 2017. Impact of customer experience on loyalty: A
multichannel examination. The Service Industries Journal, 37(5-6), pp.317-340.
Bustamante, J.C. and Rubio, N., 2017. Measuring customer experience in physical retail
environments. Journal of Service Management.
Fernandes, T. and Pinto, T., 2019. Relationship quality determinants and outcomes in retail
banking services: The role of customer experience. Journal of Retailing and Consumer
Services, 50, pp.30-41.
Flavián, C., Ibáñez-Sánchez, S. and Orús, C., 2019. The impact of virtual, augmented and mixed
reality technologies on the customer experience. Journal of Business Research, 100,
pp.547-560
Jain, R., Aagja, J. and Bagdare, S., 2017. Customer experience–a review and research
agenda. Journal of Service Theory and Practice.
Kandampully, J., Zhang, T.C. and Jaakkola, E., 2018. Customer experience management in
hospitality. International Journal of Contemporary Hospitality Management.
Keiningham, T. and Et.al, 2017. The interplay of customer experience and commitment. Journal
of Services Marketing.
Khan, I., Riivits-Arkonsuo, I. And Et.al, 2020. Customer experience and commitment in retailing:
Does customer age matter?. Journal of Retailing and Consumer Services, 57, p.1022
Kranzbühler, A.M., Teerling, M. and Et.al, 2018. The multilevel nature of customer experience
research: an integrative review and research agenda. International Journal of
Management Reviews, 20(2), pp.433-456.
Kuppelwieser, V.G. and Klaus, P., 2021. Measuring customer experience quality: the EXQ scale
revisited. Journal of Business Research, 126, pp.624-633.
McColl-Kennedy, J.R., Neely, A., and Et.al, 2019. Gaining customer experience insights that
matter. Journal of Service Research, 22(1), pp.8-26.
Rather, R.A., 2020. Customer experience and engagement in tourism destinations: the
experiential marketing perspective. Journal of Travel & Tourism Marketing, 37(1),
pp.15-32.
Roy, S.K., Nguyen, B. and Melewar, T.C., 2017. Constituents and consequences of smart
customer experience in retailing. Technological Forecasting and Social Change, 124,
pp.257-270.
Shields, S., Shapiro, P. and Rowan, A., 2017. A decade of progress toward ending the intensive
confinement of farm animals in the United States. Animals, 7(5), p.40.
Smet, J., 2018. An introduction of Lean manufacturing in the poultry processing
industry (Bachelor's thesis, University of Twente).