Customer Experience at Tesco: Value Proposition and Strategies

This report provides a comprehensive analysis of Tesco's customer experience strategies. It begins with an introduction highlighting the importance of customer satisfaction and Tesco's value proposition, which focuses on providing affordable, high-quality products. The report examines how Tesco delivers customer experiences, identifies their target customers (middle-income individuals), and details the six pillars of the customer experience model (integrity, resolution, expectation, empathy, personalization, and time & effort) and how Tesco applies them. The report then explores the implications of digital disruption on Tesco's customer experience, including their website, mobile app, AR technology, and delivery innovations. Finally, it offers strategic recommendations to enhance Tesco's customer experience and improve customer loyalty and overall business performance.

Customer Experience

Table of Contents
INTRODUCTION...........................................................................................................................3
Value proposition of Tesco....................................................................................................3
How it delivers the customer experience................................................................................4
Target Customers....................................................................................................................4
The Six Pillars of Customer Experience Model.....................................................................4
Implication of Digital Disruption to the delivery of the Customer Experience.....................7
Strategic Recommendation.....................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Customer are the key ingredients for any business, without them organisation cannot
perform their operation activities. They are the one who purchases goods and services from
Company and drive revenue. It is important to make customer satisfy by fulfilling their needs
and requirements because satisfied person helps in increasing growth and productivity of
Business. The Organisation competes with each other to attract customers by providing better
services, developing unique products or by lowering their price to increase customer base. To
fulfil customer needs and requirements, some organisation monitors their customer relationship
to improve its products and services (Kuppelwieser and Klaus, 2021). For increasing the growth
and operation of business it is necessary to make consumer feel happy by providing good and
services according to their taste and preferences. Customers are generally classified according to
their demographic for example, race, income level, age, geographic location, gender and
ethnicity which helps businesses o identify their target market and focus on particular segment.
To improve customer satisfaction, the organisation must understand customer’s needs and collect
feedback from them (Trischler, Zehrer and Westman, 2018). Tesco is a multinational groceries
and general merchandise retailers; they focus on providing products and services at low cost to
increase their customer base. There first priority is to offer best services with supreme quality to
people at affordable price which makes them unique and leads to gain higher profitability. The
report covers value proposition of Tesco and its target segment on which they are focusing. In
the project, six pillars of customer experience model are also discussed by applying on Tesco and
its implications of digital disruption to the delivery of customer experience in Organisation.
Value proposition of Tesco
The Value proposition of Tesco is to understand customer better than anyone, Company
wants to be energetic, innovative and first for customers. They are using their strength to deliver
unbeatable value to consumers. The Organisation treat customer according to the way they like
to be treated. They have adopted a strategy of reducing price to attract more and more customers.
Tesco has also maintained its product quality as by reducing the price. By using this strategy,
company ensures that no one could match their price of products.

How it delivers the customer experience
Customer plays an important role in today's business as they are the one who creates an
impact on performance of business. Nowadays, companies are focusing on fulfilling needs and
requirements of customer rather than producing and designing product as they sell products
which makes people satisfied, not the goods which organization want to sell or produce. Tesco is
one of the largest supermarket chain which deals in variety of products and services including
clothes, telecom, groceries and insurance, their main aim is to meet demand and needs of
different type of customer in one stop shop situation (Khan and et. al., 2020). The company
produces its own brand's product and offer to people; they also serve commodities of other
organization. Tesco main purpose is to create value for customers, they put them in its first
priority. The firm uses predatory pricing strategy as this helps in producing and offering products
at low price. This strategy makes organization to compete with other supermarkets and lead to
increase in growth and profitability. They improve customer experiences by providing products
at affordable price so that more and more people can attract towards supermarket (Shobeiri,
Mazaheri and Laroche, 2018).
Target Customers
The target customer of Tesco is individual with middle income and the person who are
more interested in quality. Therefore, Company targets people who want products at affordable
price without compromising its quality. They target customers of all age whether young or old
people. On the basis of gender and occupation they target both men and women whether
students, professionals or employees. Tesco main purpose is to increase its customer base by
providing goods at minimum price which attracts people towards store. Customer are the key
ingredient for any business if they are highly satisfied with the services and products of company
they can increase its growth and profitability. The main reason for the success of Tesco is its
customer centric approach as they keep people at top priority which means company understand
their situation and emotions by providing products at low price (Goodman, 2019).
The Six Pillars of Customer Experience Model
The six pillars of customer experiences model was created for the businesses to know the
emotional outcome which is given by customer in respect of exceptional customer experience.
When pillars are combined with each other it helps organization to understand the customer
experiences they are offering across various channels.

Integrity
The organization must create integrity by creating trust building moments and events.
Customers prefer goods and services of that company who stand on its promises. For increasing
the growth of Business it is necessary to present them in trustworthy manner. The firm can create
trust by standing for something other than profit and provide better services at affordable price.
The business can build Customer trust by keeping their behavior consistent and persistent. By
applying consistent approach, people are much more likely to trust organization. It is necessary
to maintain a great relationship with customers as by having conversation, the barriers get
breakdown and company can gain trust of people (Ciuchita, Mahr and Odekerken-Schröder,
2019). Tesco is working with Integrity as they provide products at low price without reducing
quality which creates a trust among people. The Company’s main aim is not to earn profit rather
they focus on fulfilling needs and requirements of customer (Pekovic and Rolland, 2020). They
communicate with people by providing Clubcard royalty schemes which enable customer to gain
point on every purchase at Tesco. The advertisement of Tesco is usually broadcast at evening
time as this time is suitable for people to sit in front of TV. Company also use various sales
promotion techniques to attract customers such as offering products with Buy one get one free
schemes or using three for price of two scheme.
Resolution
Resolution generally means turning a bad experience of people into great one. The
organization must recover customer who had faced poor experience. Resolution is all about
keeping customers in better position by solving their issue and offering sincere and warmth
apology. The business must create a sense of urgency by accepting and solving problems of
customers genuinely. They must create a trust among people that whatever it takes to fix the
issue, company will go extra mile for solving problem and providing satisfactory customer
experience. The brand must focus on making customer feel good related to the service recovery
experiences (Sahu, Deng and Mollah, 2018). Businesses can use resolution elements for
correcting the wrongs they are acting with urgency and sincere apology. Tesco main motive is to
make their customer feel comfortable with its price and quality. If in case people face any bad
experience, organization clears the issue with efficient manner without reducing the image of
Brand. Tesco train their employees by scheduling training and development programs in which

seniors provide knowledge related to handling and dealing with customers complaints and
queries (Klink, Zhang and Athaide, 2020).
Expectation
Expectation is the third pillar of customer's experience, company must need to clear what
people are expecting and then go out of their way to exceed customer expectation. It is necessary
to meet the expectation of people by identifying their needs and requirements so that they get
highly satisfied with its services and help in increasing profitability and growth of Organization.
Expectation can be met by knowing target audience and reaching to right buyers. The Company
must look for a new ways to fulfil needs and requirements of people (Shi and et. al., 2020). Firm
should never expect from customers to change their expectation related to products and services
which they are offering. For working towards meeting customer expectation, best way to find out
whether the efforts are successful or not is to take feedback from people on regular basis. Tesco
works on fulfilling the needs and expectation of customers. They research and gather information
to improve its services and products quality through which company can gain more and more
customers. Hence, Tesco is successful due to fulfilling expectation of customers by targeting
right people and identifying their requirements.
Empathy
Empathy means to understand customer point of view for establishing strong relationship
with them. The empathy can be created by knowing customer experiences emotionally. By using
empathy, organization can sense other people's emotions and imagine what they might think or
feel. The organization must listen, customer problem carefully and consider it just like
companies issue it creates one to one relationship so that they can come back to. It is the
responsibility of firm to ensure that their employees must talk to the people with respect. They
must know how to treat or handle their complaints patiently and professionally (Manthiou,
2020). Tesco is using customer centric approach by creating a relationship with customers by
providing goods at affordable price which makes company to gain competitive advantage in
Market. The Employees of Tesco are well trained and well mannered, they know how to deal and
handle people with patiently and calmly.
Personalization
Personalization is another pillar of customers experience which focuses on understanding
needs and requirements of customers. This pillar helps in making Customer feel important by

creating strong connection between individual and company. Personalization is used to grab the
attention of people to drive emotional connection. The products and services are personalized
according to the taste and preferences of customers. By selling personalized goods, organization
can improve its productivity and sales as people prefer products that satisfied their requirements.
It could be possible by creating individual attention, customer preference and past interaction
with people. Tesco also provide a facility of personalization to its customers by identifying their
needs and requirements. They produce products according to the taste and preference of people
through which they get highly satisfied and become loyal towards company.
Time and efforts
Time is one of the precious commodities for customer and organization. The customer
wants to achieve their goals at particular time frame with easy manner with no issues and
complaints. If there is no problem related to products and services it becomes easy for them to
make decision and accomplish their objective easily which helps in increasing loyalty. Tesco is
working on reducing time and efforts of customer and employees by adopting a new technology
such as robotics. The new technology helps in saving time of workers and people which helps in
increasing growth and performance of Company.
Implication of Digital Disruption to the delivery of the Customer Experience
Digital disruption generally means a change that takes place due to new business model or
technology which affects the value proposition of products and services. It helps in gaining
competitive advantage and customer in Market. Usually, Company prefer digital disruption when
they get to know that customer needs are shifting. Thus, it enables organisation to keep their
customer happy whether existing or new ones. Tesco has its own website through which people
can purchase products easily without going to store. The organisation also has its mobile app
which enables individuals to browse product location. They also use AR technology to provide
information related to product location in store for employees and customers. The Company is
working on bringing delivery robot for providing automated delivery services to people. Tesco is
also working on providing same day and top up delivery services to customers. They are
planning to increase their delivery productivity by using drop off lockers and crowd delivery.
The Organisation increases their sale and makes business more efficient by using mobile
engineering technologies and social media to interact with customers and take their feedback.
Tesco is exploring upcoming technology which can increase its growth and productivity such as

adopting robotics at store and using Google glasses. The Company has already implemented
varieties of digital application to run their business activities such a Cloud computing, CCTV
monitoring systems, self checkout machines, software driven stock movement, inventory and
reception, saving schemes for people and online buying through mobile app and website (Batat,
2019).
Strategic Recommendation
Tesco can improve its customer experiences by focusing more on solving issues and
complaints of customers immediately without keep waiting them. The Company must keep
active on social media sites regularly and reply on the comments which are posted by customers.
They should ask a feedback from customers through conducting surveys and providing
questionnaires so that Tesco can improve its performance and make changes accordingly. The
Organisation must take social proof seriously to increase customer experiences by maintaining
proper customer reviews, star ratings and celebrity endorsements. The reviews and star rating
helps in increasing sales and profit as people who purchase online firstly, check out the profile of
company then only they purchase goods.
CONCLUSION
From the above information it is being concluded that the success of organization
depends upon long term relationship with people by fulfilling their needs and requirements. To
grab the attention of customers, company can provide products at low price with proper
convenient store access. By offering goods at low price, firm can create high reputation in
Market for being customer centered by giving first priority to customer and think according to
their mind such as providing goods at minimum price, varieties of commodities at one place and
convenient shopping area.

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