Amsterdam University CRM Report: Tesco's CRM Analysis (2020)

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Amsterdam University of Applied Sciences
Customer Relationship Management
Report
TESCO
5-12-2020
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Student number: 500788062
Name: Muhammad Kazim Bashir
University: Amsterdam University of Applied Sciences
Course: Customer Relationship Management
Lecturer: Mrs. Alicia Roman Alonso
Class: IB2B/ IB3F2S
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Contents
1.1 Introduction...................................................................................................................4
1.2 Company Background.....................................................................................................4
1.3 Methodology..................................................................................................................5
1.4 Research Questions........................................................................................................5
1.5 Report Structure.............................................................................................................5
2. Current customer relationship management system...........................................................6
2.1 Introduction....................................................................................................................6
2.2 Current Customer Relationship Management of the Tesco...........................................6
The CRM Strategy and its elements.................................................................................6
Customer Analytics...........................................................................................................8
Responsibility of CRM.......................................................................................................8
Customer Interaction....................................................................................................... 9
Customer Value................................................................................................................9
Persons responsible for managing CRM.........................................................................10
2.3 Conclusion.................................................................................................................... 10
3. Drawbacks of the Current System......................................................................................11
3.1 Introduction..................................................................................................................11
3.2 Drawbacks.................................................................................................................... 11
Checkout counter issue..................................................................................................11
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Multichannel approach.................................................................................................. 11
Discrimination................................................................................................................ 12
RFID Tags........................................................................................................................ 12
No Announcement......................................................................................................... 12
Food Hygiene Issue.........................................................................................................12
4. Recommendation...............................................................................................................12
4.1 Introduction..................................................................................................................12
4.2 CRM Strategy................................................................................................................12
Implementation Level.....................................................................................................14
Customer Analytics.........................................................................................................14
5. Implementing Changes to the CRM....................................................................................15
5.1 Introduction..................................................................................................................15
5.2 Implementation............................................................................................................15
5.3 Implementation schedule.............................................................................................16
6. Findings and Analysis..........................................................................................................17
6.1 Introduction..................................................................................................................17
6.2 Findings and Analysis....................................................................................................17
References..............................................................................................................................21
Appendix................................................................................................................................ 22
Interview............................................................................................................................ 22
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1. Introduction
This paper is formulated for the course of Customer Relationship Management. It is created
for gaining the knowledge regarding the Customer Relationship Management within the real
business setting course. The aim of this report is to make the student independent
consultant of the organisation and providing the recommendation on how the CRM system
can be improve. This report aids in gaining an insight into the extent of the Tesco for
managing and developing the consumer relation, the drawbacks of how the Tesco at
present manages and develops consumer relations, drawbacks of the current approach of
Tesco, and the nature of the Tesco and its environment, in what way the Tesco should
develop and manage relationships with customers using CRM, in what way the Tesco should
execute the essential changes in the customer relationship managing approach to shift from
the current to the anticipated approach for managing and developing relationships with
customers.
1.2 Company Background
The company which is selected for evaluating the CRM system is the Tesco. Tesco is one of
the prominent retail companies of the UK in terms of marketing share and increasing
international sales. From recent years, various fierce forces of competition have been
experienced by Tesco and it is seen that new competitors are increasing (Bai, and Qin, 2016,
pp.112-124). Tesco is regarded as the grocery store champion within the UK. In the
beginning, the company started trading in the drinks and food and the company has
managed to bring diversification into various vital businesses such as clothing monetary and
financial services, and consumer electronics (Wood, Coe, and Wrigley, 2016, pp.475-495).
The core aims of the Tesco includes building continuous customer relationship and expand
itself on the consumer base, assess both the values and the needs as of the consumer for
increasing the chances of revenue growth by fulfilling the needs the consumer, recognizing
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customers individually and improving the strategy for the customer satisfaction for attaining
the objective of the business (Schultz, Malthouse, and Pick, 2012).
1.3 Methodology
For conducting the data analysis for this research, the interviews were conducted from the
five employees of Tesco who have ground knowledge of the customer relationship of the
Tesco. For conducting the Interviews zoom meetings were conducted. Along with the
primary research, secondary research is also conducted. For this, various researches are
gathered from google scholar and various other online sources. The data is gathered
through convenience sampling technique. Participant for the interview are selected on the
basis of convenience and feasibility. Interviews are collected from 5 participants through
Zoom meeting.
1.4 Research Questions
The research question includes:
How Tesco manages relationship with the customer?
What are the drawbacks in the CRM of the Tesco?
What changes needs to bring by the Tesco in terms of its customer relation?
1.5 Report Structure
Within the chapter of this report aids in comprises, research question, company description,
methodology so that the reader can understand the report. Within the chapter 2, all the
description related to the current CRM system of the Tesco is present. Chapter 3 comprises
the drawbacks within the CRM of Tesco. Chapter 4 analyses that in what way the CRM
should be done and what are the strategies needs to be used by the Tesco for managing the
CRM. Chapter 5 contains recommendation for the CRM. Chapter 6 of the research contains
Findings and Analysis of the data collected from the respondents.
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2. Current customer relationship management system
2.1 Introduction
Within this chapter the current customer relationship management system of the Tesco is
discussed in detail. This section contains multiple sub-heading for evaluating the current
customer relationship management system of the Tesco.
2.2 Current Customer Relationship Management of the Tesco
The CRM Strategy and its elements
Customer Relationship Management (CRM) is the type of technology that helps in managing
the interaction with both the present and the potential customers in order to provide
growth to the business. Every organization has this system that helps in streamlining the
process and constructing a sound relationship with the customer in order to increase the
profit, sales, and improving customer service (Schultz, Malthouse, and Pick, 2012). CRM is
the key of attaining success for the company because it helps in gaining an insight into the
perception of the customer. It is one of the great ways of understanding that how the
customer will attain satisfaction and what operation needs improvement.
The CRM strategy of Tesco is based on the constant relationship management of the
company with the clients. For attaining this objective, the company is using the multi-
channel client management strategy. According to Hassan and Parves (2013) this strategy is
related to the deployment, coordination, design, and the channel assessment for improving
the consumer value through maintenance, adequate consumer gaining for improving the
consumer value through adequate maintenance and the development of the consumer.
Within this, the major concern is related to adding more values in the firm. Marketing is one
of the crucial elements of the CRM strategy (Schultz, Malthouse, and Pick, 2012).
Tesco emphasizes upon the Multi-channel client management which is one of the most
prominent marketing functions of the customer-centric approach, that is dissimilar from
conventional sales-channel research that focusses not only to the company but the
distributors also (Bai, and Qin, 2016, pp.112-124). For that reason, there are diversified
channels present in the Tesco through which both the current and the potential clients can
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correlate with the business. Direct marketing, networks for home shopping, call centres,
kiosks, ATMs, and Internet, are presently commonplace by means of which Tesco’s
consumers purchase the product. For managing the relationship with the customers, Tesco
uses the customer-based marketing CRM (Xie, and Allen, 2013, pp.46-62).
According to Hassan and Parves (2013) another core element of the Tesco is customer
service. Tesco also has the objective to evaluate the needs and the customer value for
raising revenue growth through meeting the needs of the customer. For this purpose, the
Club card accounts are used by the company 10 million customers every year, making the
list of the earned profit consumer shopping. Tesco provides vouchers and extra coupons to
its customers with the intention of the reward and increasing the enticements for shopping
(Bai, and Qin, 2016, pp.112-124). This approach of the Tesco is very significant in terms of
increasing the sales of the Tesco and evaluating the customer needs. Data analysis helps in
evaluating the decision-making process of the customer.
Figure 1 Tesco CRM
The value of the customer is visibly identified by Tesco by means of the knowledge and data
attained through the account schemes of the Tesco clubs. Tesco also takes into account the
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profit of the company simultaneously by evaluating the consumer’s data in a haphazard
manner. Along with the awareness related to the profit as a loss account for measure the
consumer investments within the scheme, the resource evaluation is performed within the
Tesco along with the customer value and the extra return created. By means of this
strategy, the customers of Tesco get attracted to the business and this also aids in increasing
the demands of the products of the Tesco. By viewing this approach of Tesco multiple
companies are trying to plot different strategies for their companies.
One of the major objectives of the CRM strategy of Tesco is to sustain the enduring
relationship with the customer and increase the loyalty level. Especially the Idea of the Club
card introduced by Tesco as consumers can use the membership through Club card. The
reason behind the Club card is to allow the consumer to collect the points while they are at
Tesco and by using these points, they can buy some more products. This is, however, one of
the great strategies of Tesco for maintaining customer relationships.
Though, as compared to the competitors of Tesco, Tesco provides these benefits routinely
and there is no specific day set for attaining benefits such as birthdays. Along with this, the
competitors of Tesco have their membership occasion, in this way the customer takes the
benefit of the product. Moreover, the consumers of the majority of the competitors of
Tesco are unable to take benefit from the Club card. Another major aim of Tesco is that it is
focused on increasing the effectiveness and increasing the speed of the queuing procedure
and increase the journey of the customer. Tesco tries to attain the data of customers by
using Data analytics. It is seen that there are multiple companies that don’t take benefit
from this data, though it is vital for enhancing a better relationship with the customer and
maintaining the CRM. There are various places in which CRM is used within the Tesco for
enhancing the efficiency of the work and increasing customer satisfaction. By providing
customer satisfaction, ultimately revenue will be increase.
Customer Analytics
The CRM of the Tesco is followed at the customer facing level. Tesco uses NPS as CRM
analytics metrics. The CRM metrics of the Tesco is based on the 62% of sales through Club
card, 85% of revenue through Club card, and 90% redemption of promotional coupons.
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According to Hassan and Parves (2013) the major advantage for both the company and the
customer is that data analysis helps in making the decision in terms of management,
promotion, and location of the store. These thing helps in putting the Tesco at its zenith
with respect to the customer relationship. Furthermore, for identifying the personal
customers, market segmentations are performed by Tesco, in this scenario the core of the
concentration of the company is on the consumer.
According to Xie and Allen (2013) unlike most of the companies, where the key focus is on
other components such as the technology, the emphasis of the Tesco is on the consumer
only as the basis for finding and ascertaining the distinct needs of the customer. After all the
operations, the individual client starts to be valued and appreciated that aids in increasing
consumer loyalty (Bai, and Qin, 2016, pp.112-124). Furthermore, there is market
segmentation used by Tesco for answering the economic questions of when, how, who,
what, and where to produce during production.
For that reason, Tesco focussed on the individual customer’s needs. Tesco takes into
account that which customer type is loyal, and then place this type at the centre of its CRM
strategy. These strategies of the Tesco worked efficiently when relationship management
with the consumers is concerned (Bai, and Qin, 2016, pp.112-124).
Responsibility of CRM
For managing the CRM, Tesco uses its websites and the on-demand CRM technology for
enhancing customer services in a better way especially for people purchasing from the
website or retailer's stores. Within the call centres of Tesco, there are software for
electronically supporting the customer. Customer services staff log and manages the
customer interactions through chats, and email to increase the understanding around the
reasons that why should the consumers have to build interaction with the business (Bai, and
Qin, 2016, pp.112-124). Consistent responses are provided by Tesco for responding the
queries of the customer whenever any technological products are purchased by the
customer from stores of Tesco and direct catalogue.
Customer Interaction
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Recently the company is controlling the biggest online store of grocery throughout the globe
via Tesco.com. Numerous customers are registered on Tesco.com and they attain numerous
deals on their orders every day and in this way, the company gets revenue of more than
1.83 billion US dollars (Bai, and Qin, 2016, pp.112-124). By means of enhancing the wallet
share via cross-selling in the whole divisions in Tesco, the company becomes able to
enhance its revenue along with the profit margin growth. The reason is that great quality
and improved services are offered by the business.
Moreover, patient care and enhanced value aids in increasing customer satisfaction and
attraction. In this way, customer loyalty increases to a great level. According to Xie and Allen
(2013) for improving consumer satisfaction, Tesco tries to make the consumer experience
bit pleasurable. This however aids in increasing the repetitive buying and increased sales
which aid in increasing the business process and making company at the apex of all grocery
delivering organizations within the whole globe. Tesco targets the customer group who have
the capacity of becoming the potential customers and can accept offers (Bai, and Qin, 2016,
pp.112-124). By means of the CRM tactic of Tesco, the company can target the customer
and can fit on their needs. For the promotion of the Club Card system, Tesco has used
multiple promotion techniques for increasing sales.
Customer Value
For creating customer value, Tesco plays really hard. It is said that no one tried harder for its
consumers as Tesco did, especially for understanding the customer and bringing innovation
for the customer, by using the strength to give unbeatable value to the customers (Bai, and
Qin, 2016, pp.112-124).
The company treats its customers in a way customer want to be treated. The whole team of
Tesco respect and trust each other at its best for delivering the best service to the
customers of Tesco. The workers within the Tesco support each other and avoid criticism to
share the best knowledge so that the knowledge can be utilized for attaining success and
learning from experience. The company knows that the top 100 consumers at any of its
outlets can provide the sales benefits higher than the bottom 4000 due to this reason the
top % helps in providing the sales of the top 20%. It is realized by the company that by
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focusing on the satisfaction of the top consumer the Tesco will aid in providing great success
to the company (Bai, and Qin, 2016, pp.112-124).
For ensuring the company’s success it is essential for the workers of Tesco to understand
the rationale and the importance of the CRM of Tesco. For their staff members, the
company has uploaded about 140,000 educational videos so that they can deliver the best
services to the customers (Wood, Coe, and Wrigley, 2016, pp.475-495). These videos
contain knowledge that how the workers can provide benefits to the stores and what is
purpose and initiative of the business and how the company can achieve goals. These videos
also include why it is essential for the worker.
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Figure 2 Creating Customer Value
For creating the customer value, Tesco performs proper market research in order to gain an
insight into the customer perception. It manages the consumer data and marketing
information.
Persons responsible for managing CRM
CRM managers are accountable for executing the tasks of the customer relationship
management of the Tesco. According to Xie and Allen (2013) one of the major techniques
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used by Tesco is attaining consumer feedback so that it can take into account the preference
of the customer and offering the best services to the customer.
Figure 3 Role of CRM manager and customer relationship manager
2.3 Conclusion
Tesco is regarded as the most renowned retail company of the UK and contain greater share
in market and increased international sales. Tesco is also facing increased competition from
the competitors therefore the company focuses on its customer relation services for
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delivering the enhanced experience to the customer. From recent years, various fierce
forces of competition have been experienced by Tesco and it is seen that new competitors
are increasing. In order to create the customer value, Tesco plays really hard. It is said that
no one tried harder for its consumers as Tesco did, especially for understanding the
customer and bringing innovation for the customer, by using the strength to give
unbeatable value to the customers. The company treats its customers in a way customer
want to be treated.
3. Drawbacks of the Current System
3.1 Introduction
The whole team of Tesco respect and trust each other at its best for delivering the best
service to the customers of Tesco. However, Tesco also lacks in some of the aspects of the
customer relationship. This section will help in providing the details of the drawbacks
present within the system.
3.2 Drawbacks
As Tesco is renowned as one of the prominent global brands of customer management still
there are certain issues that are faced by the customers of Tesco which the company needs
to manage (Bai, and Qin, 2016, pp.112-124).
Checkout counter issue
First is that the complaints are received by Tesco for its checkout counter as it takes a long
time and customers have to wait. Hence, it is essential that the company needs to make
multiple counters for checkout purposes. It was published in the grocer magazine that the
checkout counters of six supermarkets of Tesco have the problem of slow checkout. The
shortest queues were in the Somerfield’s Tesco with a wait of 4 min.
Multichannel approach
The multichannel approach provided by the Tesco causes a lack of Integrated experience to
the customer (Wood, Coe, and Wrigley, 2016, pp.475-495). For efficiently using each
channel for pushing to convince and products means that it is the ground duty of the
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business to deliver the integrated experience to the customer. Due to this reason, some of
the customers of Tesco start looking on other companies for their better experience.
Discrimination
One of the major critics faced by Tesco is related to the discrimination against the Asian
customer which was highly unethical for the brand. Within the Tesco, two workers have
been accused of promoting racism. They refused to sell the grocery to the customer because
they were Asian (Bai, and Qin, 2016, pp.112-124).
RFID Tags
Tesco has also experienced the critics for its RFID tags for collecting the information on
product movement within pilot stores. Tesco was using spy chips for illegally collecting
customer information and shopping habits.
No Announcement
The last club card boost event was in 2016 in which the consumer was allowed to double up
points to use in-store. In 2018, the Tesco decided to end this double up points scheme and
for this, the customer didn’t get any notice. Due to this reason the company faced great
critics and the backlashes from the sides of the customer.
Food Hygiene Issue
While managing the relationship with the customers it is essential that the quality of the
products needs to be high. Tesco also faced scandals such as Foody Hygiene allegation and
horse meet standards due to which the market share of Tesco has significantly dropped.
4. Recommendation
4.1 Introduction
This section will help in presenting the recommendation and the strategies that needs to be
used by the Tesco for resolving the issues within the CRM system.
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4.2 CRM Strategy
Within Tesco it is seen that the discrimination in between the workers is present. It crucial
that all the elements of discrimination must be eliminated for delivering the best experience
to the customer. Otherwise, the company have to pay the strong charge for doing the
discrimination. Another problem face because of the CRM system of the Tesco was that the
Spy chip on the cash counters of the Tesco were stealing the personal information of the
customer which is highly unprofessional and dangerous. It is crucial that the company needs
to take action against any of these actions. The companies are providing the multiple
channels but their lack of integrated experience to the customer. It is crucial for the
company to deliver a fully integrated experience. Due to this reason, some of the customers
of Tesco start looking on other companies for their better experience. The first and
foremost thing that needs to be done by Tesco for managing the relationship is to focus on
workflow automation which is one of the most crucial components of the CRM strategy.
This strategy can help in managing the issues related to the checkout counter (Aiello, et.al,
2020). The company can open every checkout counter for the customers so that the
customer doesn’t have to wait long for their turn. Workflow procedure majorly incorporates
process streamlining that consequently aids in decreasing the cost. The automation of work
flow not only save the energy and the time of the workers as well. This also aids the workers
to evade unnecessary tasks (Wood, Coe, and Wrigley, 2016, pp.475-495). Moreover, the
company needs to converts is an operation on the cloud-based system that can help in
better running the sales. As some of the customers of the Tesco faced a problem with the
apps of the Tesco, therefore it is essential for the Tesco to effectively manage all the
problems associated with the app. The company should use proper store inventory software
to keep an update of the inventory. Or else in case the consumer will unable to confirm that
either the product is present for the pickup than the customer will end up buying the
product from other brands.
Within the multi-channel approach sometime the problem raised regarding the prices. It is
seen that when the prices are less than this aids in providing a competitive edge to the
business of the company. The company should also incorporate the customized buying
experience of the customer in this way there will be much more sales. The customer who
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wants to order the bulk of the products than they can get a great discount with the lower
price’s strategy. Tesco should also sell out the product lower than the market rates so more
customers will get attracted to the brand. According to Turner (2012) for avoiding
discrimination by the employee, it is essential that Tesco must work on this and provide
uniform training to the work. The in-house attorney of the Tesco needs to ensure that
employees are treating the customers equally and with respect. Due to multiple activities,
the element of racism can be raised such as customer appearance, age and race may make
them suspicious. However, this needs to be mitigated by delivering adequate training to
workers and strict actions must be taken in case of the rise of any form of discriminatory
practice. As the training of the employee is the key to customer service, in this way the
company must ensure that all the consumers are attaining a similar experience (Wood, Coe,
and Wrigley, 2016, pp.475-495).
When the workers are highly trained than there will be fewer problems occur. It is curial
that all the workers need to be trained in a way that they never treat customers in a
discriminatory way. The discriminatory practice must not be ignored in any way and it is
essential to report in case any discriminatory practice occurs. Moreover, there should be a
proper CRM system for managing the relationship with the customer. The company needs
to hire the team for CRM management so that there should be no lack of integration or the
negligence can be occurred. There should be multiple check counters for managing the
customers in an effective way. Tesco needs to work upon its online counters so that there
can be no delay in the orders of the customers and they can get satisfied.
The company needs to ensure that each and every policy needs to be the same for
everyone. Tesco needs to have diverse staff for breaking the prejudices that workforces may
already such as workers from the different race deal with different customers, this is great
for avoiding discrimination. According to Mollah (2014) Tesco needs to make sure the safety
of the customers by securing their information at its best. Tesco needs to maintain a high
level of confidentiality of the customer data as the accused to illegally taking the personal
information of the customer through a spying chip. Tesco is accountable for using social
media for effectively announcing each and every scheme (Wood, Coe, and Wrigley, 2016,
pp.475-495). It is also essential that the company must notify the potential customers if in
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case the company stops any of its promotion or discount offers. The announcements need
to be present on every channel of social media with the proper update of new or closed
schemes so that customers cannot get dissatisfied.
According to Xie and Allen (2013) Tesco needs to have advanced CRM software. Bringing
advancement and modern kinds of software will help in managing effective relationships
with the customers and this is the great way of increasing the customer satisfaction and the
retention as well. When there is advance CRM software, then the customer will get
integrated and a better experience of the customer. The CRM will have enormous benefits
for the future in a way that customer will get satisfaction and all their queries and problems
will be easily resolved without any hurdle.
For better CRM, the company needs to use the email integration such as Yahoo, Outlook,
and the Gmail that permit the Tesco for managing and doing the contact list segmentation
(Shkoukani, Alnagi, and Abulail, 2013, pp.1-8). In this way, the centralized hub for internal
cross-collaboration will be promoted within the Tesco. Within the CRM software of the
Tesco, the email integration capabilities need to be included. According to Mollah (2014) the
company needs to CRM managers who have more experience in this field so that they
cannot only manage the CRM software but look at the overall management of the
relationship with the customer.
Implementation Level
The CRM strategy of the Tesco needs to be implemented at the organization-wide level so
that each and every worker of the company, will exert best efforts for meeting the customer
satisfaction level at its best.
Customer Analytics
The company should use CRM analytics for gaining information from the customer and
gaining the perception. One of the best analytics is the CSAT that can better able to help the
Tesco for gaining insight into the demands and the market. The company should use the
trend study by making charts that will consequently the company for doing the trend study.
Data analytics is the pivotal and essential rudiment of Customer relationship management
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as it aids in doing the study of the data that may further aid in business conditions at any
point of time (Wood, Coe, and Wrigley, 2016, pp.475-495).
5. Implementing Changes to the CRM
5.1 Introduction
This chapter helps understanding the changing within the Customer Relationship
Management. This chapter contains implementation schedule task of the Customer
Relationship Management.
5.2 Implementation
For the management and implementation of new strategies within Tesco, it is essential that
the company needs to involved various stakeholders such as the CRM manager, marketing
manager, and retail store agent, for effective implementation of the integrated system
(Shkoukani, Alnagi, and Abulail, 2013, pp.1-8). CRM manager has this duty to perform
customer interaction and are specialized in customer management for maintaining and
executing the system. It is the altogether duty of the CRM manager, retail store agent, and
the marketing manager to have sound customer relation management. The happy
consumers are the cash cow for the business therefore all these stakeholders need to work
together for better engagement of the customer. The CRM manager may help Tesco in a
better understanding of the customer. Similarly, the top manager will better be able to view
the market trends and ensure that issues can never raise again (Wood, Coe, and Wrigley,
2016, pp.475-495).
For bringing changes in the culture and organization there is a need of proper training of the
workers. It is essential to train the worker as per the culture of the company. In this way, the
workers will better able to manage the relations with the workers. The workers need to
train as per the new CRM policies. It is crucial that they need to be trained for eliminating
discrimination against the customer. Slowing the checkout counter is one of the crucial
issues faced by the customer, workers should view this issue and try to fix it whenever the
problem is raised. Tesco needs to work on its environment by making it friendly for its
workers so that they can effectively work on implementing on the provided strategies.
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Moreover, the company needs to redesign its cultural intervention. The best relationship
with the customers, it is crucial to have a proper employee team for managing the concerns
of the customers. Therefore, the company have to formulate strong foundation for the
employees. Tesco is accountable for ensuring that each and every policy are same for
everyone. Tesco needs to have diverse staff for breaking the prejudices that workforces may
already such as workers from the different race deal with different customers, this is great
for avoiding discrimination.
Tesco can use “Trust maps” as the CRM (Customer Relationship Management) Software.
This software includes Customer data management, marketing automation, sales
enablement and acceleration, customer support and service, and some other additional
features for better management of customer relations. Within the customer service and
support, ticketing system, live chats, knowledge bases are included (Wood, Coe, and
Wrigley, 2016, pp.475-495). Marketing automation incorporates some of the essential
features of marketing automation, these include marketing analytics, web forms, email
marketing, lead management, lead qualification and storing, and the web forms creation.
For accelerating the sales technology, the Trust maps in one of the essential features for
sales enablement. Other special features that are included in this include scalability, ease of
integration, privacy, and security.
5.3 Implementation schedule
The CRM activities will be executed in six months.
TASKS/ACTIVITIES 1st
month
2nd
Month
3rd
month
4th
month
5th month 6th month
Formulating the CRM
Implementation Team:
Hiring CRM manager,
marketing manager, and
other workers
Formulating a Change
management plan
Starts working with the
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CRM
Training of other
employees and workers
related to customer
relationship
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References
Aiello, L.M., Quercia, D., Schifanella, R. and Del Prete, L., 2020. Tesco Grocery 1.0, a large-
scale dataset of grocery purchases in London. Scientific Data, 7(1), pp.1-11.
Kukreja, G. and Gupta, S., 2012. Tesco Accounting Misstatements: Myopic Ideologies
Overshadowing Larger Organisational Interests. Wall Street Journal.
Bai, F. and Qin, Y., 2016. The implementation of relationship marketing and CRM: How to
become a customer-focused organization. Journal of Business & Economic
Policy, 3(2), pp.112-124.
Hassan, A. and Parves, M., 2013. A Comparative Case Study Investigating the Adoption of
Customer Relationship Management (CRM) The Case of Tesco and
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Appendix
Interview
1. To what extent the Tesco focuses on the customer satisfaction?
2. What measures are taken by the Tesco for meeting the needs of the customer?
3. Is CRM is used in the Tesco?
4. Do you think the CRM of the Tesco is effective?
5. Is there any drawback within the CRM of the Tesco?
6. In what way the drawbacks within the CRM of the Tesco can be managed?
7. What modification should be added within the CRM system of the Tesco?
8. What will be the future benefit of the CRM system of Tesco?
9. What benefits are attained by the company with the Customer Relationship
management?
10. What changes needs to bring by the Tesco in terms of its customer relation.
11. Who should be stakeholder in building changes within the CRM of the Tesco?
12. At what level the changes need to be executed?
Transcript
1. To what extent the Tesco focuses on the Customer Satisfaction?
For the first it is asked from the participant that “To what extent the Tesco focuses on the
Customer Satisfaction?
Participant one: Tesco focuses greatly on the Customer Satisfaction.
Participant two: Customer are the essential and important asset for the Tesco; therefore,
the core focus of the Tesco is to satisfy the consumer.
Participant three: Tesco has higher focus on the consumer satisfaction.
Participant four: Tesco has somewhat focus on the consumer satisfaction.
Participant five: Tesco pays lots of attention on its consumer for gaining high level of
satisfaction.
This indicates that the answer of the majority of the respondent was in favour that Tesco
have great focus on customer satisfaction as Tesco considers its customer as its asset. From
the analysis it is extracted that the focus of the Tesco was greatly on the consumer
satisfaction.
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2. What measure are taken by the Tesco for meeting the needs of the customer?
For 2nd question it is asked “what measure are taken by the Tesco for meeting the needs of
the customer?” The cumulative response was attained.
Participant One: Tesco uses multiple strategies and assess the customer such as use of
technology and other methods of providing great satisfaction.
Participant Two: Tesco take into account the consumer preference by evaluating the like
and dislikes.
Participant three: Evaluating the customer and make the groups of the customer into
multiple segments and the permutations in line with aspects such as promotional
responsiveness, regency, lifestyles lapse rates, value, frequency, the redemption of the
coupon, behaviour have been used by Tesco as one of the core tactics for attaining the
successful market segmentation strategy in operating the business.
Participant Four: For taken into account the consumer preference, Tesco conduct survey
and divided the consumer in different groups and segment. After that perform proper
evaluation of their likes and dislikes.
Participant Five: For evaluating the likes and preferences, there are different strategies
The cumulative response suggested that in order to gain an insight into the needs and
preference of the customers are check. For this the surveys are conducted on a regular
basis.
3. Is CRM is used in Tesco?
For 3rd question it is asked from the participant, Is CRM is used in Tesco?
Participant one: Yes, Tesco gets various benefits through it.
Participant Two: Yes, CRM is used within the Tesco. Tesco tries to attain the data of
customers by using Data analytics.
Participant Three: Yes, it is used as the core element for taking into account the consumer
preference. It is seen that there are multiple companies that don’t take benefit from CRM.
However, it is essential for maintaining consumer relation.
Participant Four: There are various places in which CRM is used within the Tesco for
enhancing the efficiency of the work and increasing customer satisfaction.
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Participant Five: Tesco uses CRM for providing customer satisfaction, ultimately revenue will
be increase.
Thus, it is indicated that CRM is used at various places within the Tesco and have greater
importance within the Tesco.
4. Is there any drawback within the CRM of Tesco?
For 4th question it is asked from the participant that either any drawback of CRM faced by
the Tesco or not.
Participant one: No, I don’t think so.
Participant Two: Yes, there are few drawbacks of the CRM that need to be catered One of
the major issues in the CRM of the Tesco is that the checkout counters of the Tesco are slow
and customers have to do long waits.
Participant Three: Yes, there are few drawbacks such as Tesco is providing the multiple
channels but their lack of integrated experience to the customer. It is essential for the
company to deliver a fully integrated experience.
Participant Four: Yes, Tesco CRM is associated few major issues, due to this reason, some of
the customers of Tesco start looking on other companies for their better experience.
This indicates that CRM of Tesco has few issues. The foremost issues of the CRM of the
Tesco is that the checkout counters of the Tesco are slow and customers have to do long
waits. Moreover, the Tesco is delivering the multiple channels but their lack of integrated
experience to the customer. Due to this reason, some of the customers of Tesco start
looking on other companies for their better experience.
5. What way the drawbacks within the CRM of Tesco can be managed?
For 5th question it is asked from the participant that either any drawback of the CRM can be
managed affected. Multiple ways are presented by the respondents.
Participant One: Efficient training of the workers, is one of the effective ways. Efficient and
skilled workers are highly trained which reduces the problems. It is essential that all the
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workers need to be trained in a way that they never treat customers in a discriminatory
way.
Participant Two: In order to eliminate the discriminatory practice, it is essential to take
serious measures. As Tesco is the renowned company therefore, the discriminatory practice
must not be ignored in any way. Whenever, any discriminatory practice occurs, it is essential
to report.
Participant Three: For managing the relationship with the customer, there should be a
proper CRM system. The CRM management needs to be efficient
The company needs to hire the team for CRM management so that there should be no lack
of integration or the negligence can be occurred.
Participant Four: There should be multiple check counters for managing the customers in an
effective way.
Participant Five: Tesco needs to work upon its online counters so that there can be no delay
in the orders of the customers and they can get satisfied.
This indicates that It is crucial to provide effective training to the workers. When the
workers are highly trained than there will be fewer problems occur. It is essential that all the
workers need to be trained in a way that they never treat customers in a discriminatory
way. It is essential that Tesco should work for the discriminatory practice. Within the Tesco,
the discriminatory practice must not be ignored in any way and it is essential to report in
case any discriminatory practice occurs. It is essential that there should be a proper CRM
system for managing the relationship with the customer. The company needs to hire the
team for CRM management so that there should be no lack of integration or the negligence
can be occurred. There should be multiple check counters for managing the customers in an
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effective way. Tesco needs to work upon its online counters so that there can be no delay in
the orders of the customers and they can get satisfied.
6. What modification should be added within the CRM system of the Tesco?
For sixth question it was asked from the participants that what kind of modification needs to
be added within the Tesco’s CRM.
Participant One: It is crucial that there should be advanced CRM software. For this it is
essential to use big data analytics for managing the CRM.
Participant Two: Bringing advancement and modern kinds of software will help in managing
effective relationships with the customers and this is the great way of increasing the
customer satisfaction and the retention as well.
Participant Three: CRM can be effective by adding different strategies within the CRM
system of the Tesco. CRM managers needs to be hired for this purpose.
Participant Four: CRM software are the great source of increasing the consumer satisfaction
level.
Participant Five: When there is advance CRM software, then the customer will get
integrated and a better experience.
This indicated that in order to increase the satisfaction level of the customer there are
different software
7. What will be the future benefit of the CRM system of Tesco?
When it is asked form the participants that what can be the future outcome of the CRM
system of Tesco.
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Participant One: The CRM system needs to be efficient and advanced for providing the
future benefit in an effective way. This is one of the great sources of providing the great
satisfaction to the customer and delivering the services and products as per their desire.
Participant Two: CRM system will help in managing positive relation with the customer and
helping in reducing the queries of the customer in an efficient way.
Participant Three: CRM system is one of the effective ways of managing the consumer
relation with the company therefore, within this the customer relationships will be
sustained greatly.
Participant Four: In future, CRM will be great for meeting the need of the customers and
resolving their issues, if present any.
Participant Five: Through CRM, the company can effectively fix possible problems related to
the consumer satisfaction. This is one of the efficient ways of retaining the customers.
According to the cumulative responses of the participants, the CRM will have enormous
benefits for the future in a way that customer will get satisfaction and all their queries and
problems will be easily resolved without any hurdle.
8. What benefits are attained by the company with Customer Relationship
Management?
Participant One: While managing the customer relationship, there are numerous benefits
provided to the company as this helps in increasing the level of the customer satisfaction.
Participant Two: It is one of the great ways of the increasing the success of the company.
Participant Three: It helps in increasing the reputation of the company.
Participant Four: CRM is one of the great ways of understanding that how the customer will
attain satisfaction.
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Participant Five: CRM is the essential way that helps in understanding that what operation
should be improved.
As per the responses, CRM is the key of attaining success for the company because it helps
in gaining an insight into the perception of the customer. It is one of the great ways of
understanding that how the customer will attain satisfaction and what operation needs
improvement.
9. What changes needs to bring by the Tesco in terms of its customer relation?
For question 9 it is asked from the participants that what changes needs to bring by the
Tesco in terms of its customer relation.
Participant One: It is essential that there should be proper customer relation management
and for this there should be proper employee team.
Participant Two: Employee team can help in managing the concerns of the employees of
Tesco.
Participant Three: In order to construct better relation with the customer, the presence of
employee team is necessary.
Participant Four: For enhancing the better relation with the customer, the workers need to
be trained efficiently.
Participant Five: Tesco relationship with the customer can be managed if the company will
use proper software and advance technology for enhancing the operations of the Tesco and
retaining more customers. The cumulative response suggested that for managing the best
relationship with the customers it is crucial to have a proper employee team for managing
the concerns of the customers.
10. Who should be a stakeholder in building changes within the CRM of the Tesco?
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For 10th question, it is asked from the participant that who should be a stakeholder in
building changes within the CRM of the Tesco?
Participant One: As per my opinion the important stakeholder for changing the Tesco CRM.
Participant Two: From my perspective, the top-level management should bring changes
within the Tesco’s CRM.
Participant Three: Team workers and marketing managers are the essential stakeholders for
managing Tesco’s CRM.
Participant Four: Employee team, top-level management and marketing managers are the
essential stakeholders within the Tesco.
Participant Five: Top-level management is accountable for bringing changes within Tesco’s
CRM.
This indicates that stakeholders are the key components of any business. The important
stakeholders for managing the CRM include top level management, CRM manager,
marketing managers, and other team workers for managing the relationships with the
customers.
11. At what level the changes need to be executed?
When it is asked from the participant that at what level changes needs to be executed.
Participant One: The changes needs to done at the organisational level.
Participant Four: From my perspective changes must be done at the level of organisation.
Participant Five: For effective customer management, it is essential that changes should be
performed at the level of organisation.
This indicates that in order to bring changes, the organisational level should be selected.
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