The Influence of CRM on Customer Retention: Tesco UK Proposal

This research proposal investigates the influence of Customer Relationship Marketing (CRM) on customer retention, with a specific focus on Tesco Supermarket in the United Kingdom. The proposal includes a detailed introduction outlining the research aim, which is to understand the impac...Read More

Running head: RESEARCH PROPOSAL
RESEARCH PROPOSAL
Name of the Student
Name of the University
Author Note

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Table of Contents
An introduction with appropriate research aim and........................................................................2
Background of the study..............................................................................................................2
Research aim................................................................................................................................3
Reseach Objectives......................................................................................................................4
Research Questions......................................................................................................................4
Research Hypothesis....................................................................................................................5
Research rationale........................................................................................................................5
An exploratory literature review......................................................................................................6
Customer relationship marketing.................................................................................................6
Benefits of Customer Relationship Marketing............................................................................7
Customer retention.......................................................................................................................8
Factors affecting customer retnyion............................................................................................9
Conceptual Framework..............................................................................................................11
Research methodology...................................................................................................................11
Research philosophy..................................................................................................................11
Research approach.....................................................................................................................12
Research design.........................................................................................................................12
Research strategy.......................................................................................................................13
Data collection...........................................................................................................................14

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Data Analysis.............................................................................................................................14
Sampling....................................................................................................................................15
Resources needed.......................................................................................................................15
Ethical consideratins......................................................................................................................16
An indicative research project plan...............................................................................................16
References......................................................................................................................................17

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Topic: The influence of Customer relationship marketing on customer retention: A case study of
Tesco in UK
An introduction with appropriate research aim and objectives
Background of the study
The customer relationship marketing can be ideally defined as the technique using which
the customer relationships in the enterprise can be maintained and sustained accordingly (West,
Ford and Ibrahim 2015). In association with this, it can effectively be indicated that, the
customer relationship management and marketing as a technique tends to undertake the customer
data and feedback, utilizes adequate marketing and pricing strategies in order to come up with
adequate techniques so as to ensure that they are being able to occupy in adequate initiatives in
order to confirm that the customers are being able to be targeted accordingly (Chernev 2018).
Hence, for a firm to ensure success, it becomes effective to state that, the collection of the
consumer data is essential. When the customer relations are sustained in an enterprise, then in
such a scenario, the enterprise is being able to ensure effective operations and the customers
become adequately loyal towards the cause of the enterprise.
There are several examples of the different enterprises whereby, the various companies
have made use of the customer relationship marketing technique and gained the trust of the
customers and considerate success. Mcdonald (2016), states that there are several customer
relationship marketing strategies as well as techniques which can be followed by an organization
to ensure long term success. These strategies and techniques can be agreed to be providing
adequate customer service strategies at all times, offering loyalty perks and rewards for the
customers, turning the internet as well as the social media to pursue the customer marketing

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activities, engaging in associated activities as well as plans on social media which help in
maintaining strong relationships with them (Banerjee 2017). The main profit of the customer
relation marketing technique can be indicated to be the strong retention of the different
customers.
The customer retention can be rightfully referred to as the technique whereby an
enterprise has the adequate facility of being able to retain a product user for a longer time frame.
When the customer retention of the enterprise is considerably high then in such a scenario, it
may lead to larger scale sales and the customer defections may be reduced (Aghazadeh 2015).
The customer retention generally tends to begin with the first contact which can organization has
with its customers and continues throughout the lifetime of the relationship with them. All
enterprises would be required to undertake initiatives to ensure that the customer retention can be
ensured. In association with this, it can be considered effective to mention that the customers
who remain retained contribute to enterprise welfare to a greater extent (Kim, Shin and Min
2016). The study aims to conduct a research in the domain of Customer relationship marketing
and the customer retention. The enterprise which has been selected for the purpose of the
assessment can be cited to be the Tesco in UK
Research aim
The main aim of the proposed study will be to understand the inspiration of the Customer
relationship marketing on the customer retention of the Tesco Supermarket as situated in the
United Kingdom.

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Research Objectives
The research purposes which have been set down for the study can be indicated to be as
follows:
1. To understand the overall concept of customer retention.
2. To examine the meaning and related techniques of the Customer relationship marketing
technique
3. To comprehend how the customer relationship marketing as a technique can be applied
for retaining the customers of an enterprise
4. To find the association of the customer relation marketing technique on the customer
retention
5. To provide endorsements based on which the customer retention at the Tesco UK can be
improved with the help of the customer relationship marketing
Research Questions
The research questions which have been designed for the study can be indicated to be as follows:
1. What is the overall concept of customer retention?
2. What are the related techniques of the Customer relationship marketing technique?
3. How can the customer relationship marketing as a technique be applied for retaining the
customers of an enterprise?
4. What is the association of the customer relation marketing technique on the customer
retention?

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5. What recommendations can be given to the organizations based on which the customer
retention at the Tesco UK can be improved with the help of the customer relationship
marketing?
Research Hypothesis
The research hypothesis can be described as the different conditions which are set down
for the study. The hypothesis which has been set down for the study can be indicated to be as
follows:|
Independent variable: Customer relationship marketing
Dependent variable: Customer retention
Alternate Hypothesis (H1): The customer relationship marketing has a strong influence on the
customer retention at the Tesco UK
Null Hypothesis (H0): The customer relationship marketing does not have a strong influence on
the customer retention at the Tesco UK
Research rationale
The reason why leading this study can be understood to be basically critical for the Tesco
in the United Kingdom has been facing considerate competition from considerate locations
around the globe and in association with this; it converts effective to guarantee that the different
enterprises are being able to undertake adequate initiatives as well. Hence, through the findings
of the study, the Tesco in the United Kingdom will be able to confirm that it is being able to
meet with the requirements of the customer adequately and ensure long term success (Moutinho
and Vargas-Sanchez 2018).

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An exploratory literature review
Customer relationship marketing
The customer relationship marketing can be defined as an essential technique which is
used by the different enterprises to guarantee that they are being able to interact with the
different customers easily (Hunt 2015). In association with this, it is essential to mention that, the
different customers need to be treated well so as to engage in repetitive purchases and associated
relationships. In line with this, it also becomes effective to state that, the various organizations
would be mandatory to confirm that they are being able to go through various initiatives which
will thereby ensure that the different enterprises are being able to engross in effective
relationship and marketing techniques and be able to maintain associated aspects with them.
According to Hollebeek, Conduit and Brodie (2016), the different customer market relationship
techniques which may be used by the enterprises like Tesco can be quite a few. Firstly, the firm
would be required to show the customers that they are valued with every interaction. This
adequately means that considerate and spontaneous interactions are the ways to make employees
feel at home and in streak with this, it becomes operative for the company to ensure that, the firm
is being able to perform adequately well.
Secondly the different organizations as present would also be compulsory to see to it that
they are being able to listen to the diverse patrons and respond well. In line with this, it can be
effectively stated that all enterprises would be required to make use of various social media
monitoring tools so that they are being able to gain responses on the customer comments as well

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as associated concerns (Al-Tit 2015). Additionally, various enterprises often apply the strategy of
ensuring that, they are mandatory to deliver free information to the customers. In association
with this, all the customers as present in the enterprise are required to feel valued and by
providing free information to them, the enterprise will be able to maintain a social connect with
them and this social connect with them will be able to appeal more customers to the enterprise
(Magatef and Tomalieh 2015).
The different supermarkets are required to apply various techniques to confirm that, the
diverse patrons are being connected with accordingly and this can be done by expanding
adequate loyalty rewards accordingly. In line with this, when the firms offer considerate perks
and associated rewards to the customers, then the customers can apply those offers and purchase
those goods which they like and in consideration with this, they will be able to remain loyal to
the firm for a extended period of time. Conferring to Scherer, Wünderlich and Wangenheim
(2015), another strategy which can be applied by the enterprises can be indicated to be frequent
communication. In line with this, it can be effectively stated that, a relationship does not work
without communication and thus if the enterprise members are being able to communicate with
the customers effectively then to this extent, the customers will be able to work well for the
enterprise and provide value to the customers (Ibojo 2015).
Benefits of Customer Relationship Marketing
Payne and Frow (2017) states that another reason why the Customer relationship
marketing as an initiative is used by various enterprises can be stated to be the fact that, there are
several benefits of applying the customer relationship marketing. In association with this, it can
be effectively stated that, when the customer relationship marketing technique is applied by the
enterprise then in this scenario, they will be able to ensure that they are being able to maintain

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better decisions about the potential offerings (Sheth 2017). In contemplation with this, it can be
considered critical to state that, the customer relationship marketing is also beneficial in ensuring
that the customer satisfaction along with the communication levels can be increased. As it is a
proven fact that the customers who have a strong affiliation with the companies cooperate more
frequently and such a scenario, the customers via the customer data platforms can be interacted
accordingly. Other benefits of making use of the customer relationship marketing can be stated
to be related to delivering consistent customer experience (Kang and Kim 2017).
In line with this, the delivery of the consistent customer experience to the different
customers will help in making the enterprise offerings considerately customer centric and the
company will be able to align the touchpoints consequently and meet with the needs of the
customers and satisfy them accordingly (Rahimi and Kozak 2017). Additionally, gathering the
customer feedback can also be stated to be a sound strategy which can be made use of by the
enterprise to retain the customers for a longer time and thereby ensure effective operations. The
customer feedback thereby assists in ensuring that the customer’s loyalty can be built
accordingly. The customer profitability can also be defined to be another technique and benefit
of the customer relationship marketing. The different customers who remain associated with the
firm for a long time frame will be able to ensure that the firm`s profitability increases to a greater
extent (Verma, Sharma and Sheth 2016).
Customer retention
The customer retention as a concept in the business domain can be understood to be a
collection of various initiatives which are essentially undertaken by the enterprise to increase

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repetitive purchases and to ensure the profitability of each of the existing customers. Hence the
different enterprises including the supermarkets tend to apply a variety of techniques which will
help them in ensuring that the acquisition of the customers becomes easy and the customer
relationships can be maximized accordingly. According to Buttle and Maklan (2019), the
customer acquisition can be made a key motivator for the customer retention. The strategies
which can be applied by the enterprise on the different activities of the firm can be indicated to
be that adequate offers should be given to them, the different customers should be provided with
adequate information and lastly, the different customer needs to be associa6ed throughout the
lifetime of the enterprise. It is only in such a scenario, that the firm will be able to retain the
customers for a longer time frame.
Factors affecting customer holding
There are a number of features which have a strong influence on the retention of the
customers. In association with this, these factors which affect the retention can be agreed to be as
follows:
 Prices: The prices of the goods can be indicated to be the largest factor which affects the
retention of the diverse customers to a great extent. In line with this, it can be effectively
indicated that when the prices of the different goods are as per the requirements of the
different customers then in such a scenario the customer retention also tends to increase
to a greater extent.
 Services: The services which are provided by the enterprise pre sales as well post sales
can be understood to be the primary services which are being provided to them. When the
different customers are being dealt with accordingly, then in such a scenario, the

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customer retention can be improved consequently and the enterprise will be able to
perform adequately well in the long run (Santouridis and Veraki 2017).
 Quality of Goods: The quality of the goods and associated products which are purchased
by the different enterprises can be stated to be influencing the customer retention to a
greater extent In line with this, it can be effective to state that, the quality of the goods
needs to be such that, it will be able to attract the different customers consequently
(Mackey and Gass 2015). When the different customer will be provided with good
quality products and services then in such a scenario, they would engage in repetitive
purchases which would ensure long term welfare and associated benefits.
 Timely assistance: When the different customers are provided with adequate facilities
and services in a timely manner then in such a scenario, it has a considerate influence on
the different retention of the customer. This is because, when the different needs of the
customers are being met with then in such a scenario they want to undertake the service
adequately in a manner such that the customer retention can be carried out accordingly.
 Communication: The communication can be referred to as the factor which contributes
greatly towards the customer retention (Rahimi and Kozak 2017). In consideration with
this, it can be stated these customers who are being dealt with accordingly then in such a
scenario, the retention of the customers increases exponentially and this leads to better
performance of the enterprise.
 Marketing: The marketing can be referred to as another technique which can be
adequately applied by the enterprise in order to engage in adequate customer retention. In
association with this, it is considerately crucial to mention that, when the marketing of the

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enterprise is adequate then in such a scenario, the enterprise would be required to take
adequate steps which would assist them in engaging in considerate long term success.
Conceptual Framework
Research methodology
Research philosophy
The research philosophy can be essentially defined to be the technique using which the
researcher makes various assumptions about the study. This step is essential to be carried out in
the first phase of the study whereby the author has to limit the role to data collection and data
analytics (Flick 2015). In consideration with this, it can be effectively stated that the research
philosophy techniques needs to align accordingly with the research objectives which have been
aligned. In such a scenario, it needs to be agreed that for the purpose of the study, the research
philosophy which can be adopted for this study can be stated to be the Positivist research
CRM Customer
retention
Price
Marketing
Service
Quality
Assitance
Product

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philosophy. In consideration of this, it can be considered effectively critical to state that, the
positivist research philosophy limits the role of the researcher to the data collection and analysis.
Hence, in association of this, through the given study, using the positivist research philosophy
will assist in ensuring that, the hypothesis as set in the beginning of the study can be measured
accordingly.
Research approach
The research approach can be indicated to be the overall perception which is undertaken
by the researcher before initiating the study. It is essential for the author to see to it that they are
being able to devise the right kind of the Research approach (Kumar 2019). A research approach
needs to be such that the overall objectives of the research can be answered along with defining
the objectives. In consideration with this, it can be effectively stated that the research approach
which will be useful for carrying out the study can be indicated to be the Deductive research
approach (Ledford and Gast 2018). The deductive research approach can be described as a type
of research approach whereby the data is adequately composed for the purpose of the research
and based on this, the information is deduced. It helps in ensuring that the information which has
been collected regarding the research procedure is refined into a systematized data and the
findings are stated accordingly. This will assist in finding the influence of the customer
relationship marketing on customer retention at the Tesco UK can be found adequately.
Research design
The research design can be effectively defined as the means using which the overall
design for the research can be decided upon and the format of the study can be followed
accordingly. In association with this, it is effective to mention that, the format of the study
should be designed in a way such that, the research purposes can be associated successful and the

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research questions can be answered. In line with this, it can be agreed to it that the research
design of the study desires to be such that the information can be processed and assessed
successfully (Bresler and Stake 2017). In association with this, it is effective to mention that the
research design which has been undertaken for the reading is the descriptive research design. In
line with this, it can be stated that the descriptive research design will be helpful in assisting the
researcher to achieve the research objectives and thereby see to it that, various findings can be
elaborated upon successfully, in line with this, it needs to indicated that, this research design
shall be helpful as it will help in finding the influence of the customer relationship marketing on
the customer retention of the Tesco in the UK.
Research strategy
The research strategy can be lawfully defined as the method in which the overall
exploration is planned accordingly and the ways in which the research will be able to determine
the outcomes effectively. It can be stated that, the researcher would be required to assume the
right kind of strategy in command to achieve the right kind of data collection and the data
analysis technique (Wiek and Lang 2016). In line with this, it can be indicated that, the research
strategy which shall be rightfully assumed for the study can be declared to be the primary
quantitative research strategy. In association with this, it can be agreed to it that, the research
strategy which can be adequately applied for the study can be stated to be the primary
quantitative technique. In consideration with this, it can be revealed that, using the primary
quantitative technique, the reading will be using the primary method of data collection whereby
the data for the research will be utilized by making use of the survey responses. The analysis
technique for the research which shall be applied can be indicated to be the quantitative
technique. In association with this, it can be agreed to it that the statistical methods which are

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present such as the Regression analysis, correlation analysis and graphs as well as the tables will
be made use of to represent the findings of the study.
Data collection
The data collection method can be rightfully defined as the method in which the data is
generally collected for the purpose of the study. Collecting the data for the study can be
considered to be very effective for the study and for the purpose of the research, it can be
considered effective to mention that, the right manner of data collection is adopted (Dumay and
Cai 2015). In suggestion with this, the data collection which will be made use of for the purpose
of the study can be cited to be the Primary data collection method. In consideration of this, it can
be effectively stated that in the Primary data collection method, the medium of the research
instrument of the survey questionnaire will be made use of to undertake the responses of the
various participants who are the regular customers at the different supermarket branches of
Tesco. These customers will be tracked online and will be given the survey questionnaire via the
mail with the help of which they will be asked certain questions which will be useful in gaining
considerate responses regarding the customer relationship marketing and the customer retention
strategy (Taherdoost 2016). This shall help in finding the right kind of strategy for the
organizations to apply in the long run.
Data Analysis
The data analysis can be labelled as the method using which the researcher will be able to
commence the analysis of the data which had been collected. In consideration of this it can be
effectively indicated that, the data analysis technique which can be applied for the study can be
implicit to be the Quantitative data analysis technique. In consideration of this, it can be stated
that, the data analysis practice needs to be aligned accordingly with the research objectives and

16RESEARCH PROPOSAL
associated findings (Ørngreen and Levinsen 2017). In line with this, it is effective to state that,
the data analysis technique which shall be made use of for the study can be indicated to be the
effective in finding the association which tends to exist between the independent and the
dependent variable. The use of the quantitative technique shall be more suitable for this scenario
as this will assist in engaging in considerate success. Using this technique the regression analysis
will be made use of along with the Correlation analysis which shall be useful in defining the
impact of the customer relationship marketing on the customer retention.
Sampling
The sampling technique can be declared to be the method which shall be applied for the
collection of the data. In consideration of this, it is effective to assure that, the sampling
technique which shall be useful for the particular study can be agreed to be the Simple Random
Probability sampling technique. Using this sampling technique, the research will take the
opinions of the random individuals who are the consumers of the Tesco and their viewpoint will
be undertaken and applied accordingly (Ørngreen and Levinsen 2017). For this study it has been
adequately decided that the sample size will be 200 participants. A pilot test of 20 respondents
will be undertaken so as to find the inspiration of the customer relationship marketing on the
customer retention.
Resources needed
The different resources which will be adequately required for the purpose of the study
can be declared to be as follows:
 Access to various database and libraries: By using this method, adequate resources would
be needed for the Literature review section which will be based on these findings.

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 Access to sample size: The access to the sample size can be referred to as the other
resources which would be required for the purpose of the study. In association with this,
it can be effectively indicated that, the respondents needed to be contacted adequately.
 Monetary resources: Another kind of resources required for the study can be agreed to be
the monetary resources. In such a scenario, the company would be mandatory to see to it
that they are successfully being able to utilize funds for adequate data collection and
analysis.
Ethical considerations
Any study which is effectively undertaken needs to ensure that effective plans for the
ethics are carried out. In association with this, it is effective to state that, for the purpose of the
study, the different resources need to be collected authentically. Moreover, as the primary data
collection method is involved, the privacy and protection of the research participants also has to
be ensured by the researcher.
An indicative research project plan.
Activity Months
M
Mar
M
Apri
l
M
May
M
Jun
e
M
Jul
y
M
Augus
t
M
Septembe
r
Finalizing topic 
Data collection of secondary
sources
 
Research design work 

18RESEARCH PROPOSAL
Literature review   
research planning  
Selection of the research
methodologies
 
Collection of the data from primary
sources at present
 
Analysis of the data sets collected  
Interpretation of the data sets
collected

Concluding the Study 
Designing a rough draft  
Submission of the Final Work  

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