MG526 Customer Experience: Tesco Analysis and Improvement Strategy

This report provides a comprehensive analysis of Tesco's customer experience, starting with its value proposition, which focuses on providing customers with desired products at low prices while serving buyers, communities, and the planet. It examines Tesco's customer experience initiatives, including the Clubcard and Baby Club, and analyzes customer demographics, highlighting the importance of age, gender, income, and family structure. The report applies the Six Pillars of Customer Experience model (Integrity, Resolution, Expectation, Empathy, Personalization, and Time & Effort) to Tesco, evaluating its performance in each area. It also discusses the implications of digital disruption on Tesco's customer experience, including the implementation of digital in-store experiences and data-driven consumer engagement. Finally, the report concludes with strategic recommendations for improving Tesco's customer experience to benefit both customers and the organization. Desklib provides this assignment solution and other study tools for students.

CUSTOMER EXPERIENCE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
1 . Analysing Value Proposition of Tesco...................................................................................3
2 .Analysing the customer experience of Tesco..........................................................................3
3 .Tesco's customer's and their demographics............................................................................4
4 . Six pillars of customer experience Model .............................................................................5
5 . Applying Six pillar of customer experience to the Tesco......................................................7
6 . The implications of digital disruption to the delivery of the customer experience of Tesco..8
7 .Strategy to improve Customer's experience in Tesco..............................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
There are several aspects in the organization that needs to take care of like its Value
proposition, their customer experience, customers and their demographic and the six pillars of
the customer's experience of the organization. In this project it has shown the value proposition
of Tesco and their main purpose is to cater customers with the products at the low price and its
core purpose is to serve their buyers, communities and planet every day. It will also shed a light
on the customer experience of the Tesco and how they are making better experience for their
buyers by introducing new schemes that is making convenient for the purchasers. Furthermore,
the project will show the details about the six towers of consumers experience and its
implementation in the Tesco. Moreover, it will also highlight the digital disruption and will also
provide strategic recommendation to improve customer experience for the customers.
MAIN BODY
1. Analysing Value Proposition of Tesco.
A value proposition is a commitment of value to be delivered, communicated, and
recognized. It is also a feeling from the buyers about how value will be delivered, experienced
and assume(Leone, Pietronudo and Dezi, 2022). A value proposition can apply to a whole
organization, or part of thereof, or customer accounts, or products or services. According to
Tesco's official website, Tesco's consumers care about the cost and value, multichannel and
comfortableness and the certainty. Typically, therefore, the establishment value proposition is to
cater customers with the products that they want at a low price(Mohd Satar, Dastane and
Ma’arif, 2019). Tesco's core purpose is to serve their purchasers, people, and earth a bit
improved each day. They every time want to make their buyers to be most important part of
what they do, while also reflecting their duty towards the people or service to community more
largely
2.Analysing the customer experience of Tesco
Tesco provides good quality of customer care services to their customers which is helpful
in increasing their engagement towards the brand. Promotion, packaging, attribute, simplicity of
use and reliability. Tesco regularly introduces new and attractive products and services for the
customers which is helpful in incinerating their attraction towards the business activities. Their
task was only to help the consumers for improving their overall experience from the business. It

also offers a variety of other services that are crucial for the business to gain a better advantage
in the industry. The organization aims at providing better payment options to their customers in
order to motivate them to make the purchasing decisions regularly. The first payment option that
will be offered by the business will be Tesco-credit card. This project will cost around something
15–20 million British pound, with beginning costs of 5-10 million pounds. The services for
buyers is the Tesco Club-card, through which customers will be able to attain lots of discounts
and offers. These coupons are beneficial for the business to improve the engagement of the
customers to buy products and services from the brand. The Club Card presently have 9.5
million purchaser. Tesco uses information Club-Card to provide to tailor its promotion much
precisely to their necessary. Previous year, Tesco introduced Club-card plus, that helps purchase
calculate for improving the purchasing process. Few months ago it also launched the Baby-club,
which gives appropriate guidance to the mothers who are expecting, including 70 British Sterling
pounds with coupons and different other gifts. The organization has a wide variety of m,embers
and has been successful in providing better services to the customers.
Tesco may be planning to develop better applications and websites that offers services to
gas stations. This occurred in Great Britain and monetary value of the company was effected
badly.
3.Tesco's customer's and their demographics
Demography is the survey of statistic, the ethical features and data base of a people
population. This survey of the property, age, constitution, and economics of respective people
can be utilized for a different of purpose.
Type of Demographics
Age: The Tesco's 42% buyers is in the age of 24-35, whereas 35% is them is in the age of
35 to 50. The population of the 18-24 age group is only about 13%, only bigger than the age of
50 years (7%) and 13-18 year old is about only 1%. The most dominating gender that is about
61% is the females. Age demographic means centring on the age range most valuable to the
Tesco's product or service.

Gender: Men and Women generally have different choices and unlikeness, demands and
thinking ability. For instance : woman mostly does the household grocery shopping and men are
less likely to do household shopping. Instead of it they are more interested in donation to a
charitable cause.
Income: Tesco uses data base in order to know their buyers income range. This tells
them that what kind of product will their buyers will purchase according to their income level.
For instance a high level income person will buy expensive and luxury products and a low level
or medium level customer will buy products according to their needs.
Family Structure: Family structure tells a lot about the customers needs and affect their
buying habits and Tesco's sales process. For example an individual person tend to priorities
themselves. Whereas people with several kids have different needs and demands. Big families
are more focussed on the low cost home items goods in comparison to the two people that has
exact salary, but do not have kids.
Demographic helps in identifying and knowing the target audience. Tesco can focus on the
marketing strategies on purchasers that are more likely to buy its products. Rather, then try to
reach everyone. It's a more cost effective and manageable manner to promote their products and
reach out to new customers.
4.The model of customer experience model
The qualitative results are shown by the six pillars of customer experience model which
provides the information about emotions. It is useful to provide an enhanced customer
experience to the consumers and increase their overall development. These pillars in the model
are helpful in recognizing the quality of experience that is provided by a business to their
customers(Galanakis, and et.al 2021). Successful establishment of these pillars may be useful
for the business top gain a higher quality of output..

Integrity: The foundation of integrity is considered as a display of the trust that is
established between the customers and the organization. Various events have been organized by
the organization in order to improve the trust of the customers towards the activities that are
performed by the business. According to the customers, establishment delivers on its
commitment is the fundamental towards the integrity. The social and ethical practices that are
conducted by the business are beneficial to build an effective image among the customers and
gaining their trust.
Resolution: It's crucial to recover purchaser that had an inappropriate experience of the
business. The work can become ineffective is the policies and procedures are not given the due
consideration by the business. Organisation have procedure which puts purchaser at their
previous position. The resolution of these problems is crucial in to fulfil the needs of customers
and provide them with a better experience. The major declaration factors is an honest Apology
top the customers and providing them with better output.
Expectation: The best brand sets the high standard. The expectations of the customers
may be fulfilled by the business in order to gain competitive advantage. The organisation knows
their brand commitment and action sets hopefulness to consumers. The needs may be effectively
met in order to provide them with better experience.
Empathy: Empathy is crucial for business in order top understand the emotion connect
of the customers towards the brand. The business may be able to build strong relationships with
the customers and improve their popularity (Keiningham and et.al 2020). It creates better
opportunities for the organization to grow in the business environment.
Personalization: It is an important element of experience is personalization. Being
capable to demonstrate that they understand purchaser particular condition and adapting to the
experience consequently is a primal part of personalization. The personal; experience may be
enhanced by understanding customers taste, interaction, creating personalized attention.
Time & Effort: Customers in today's era want fast services in order to get better results.
The business may provide the customers with the services in the time which is promised to them

as it is beneficial for gaining benefit in the industry. The organization may utilize this time
effectively for getting positive feedbacks from the customers.
5. Applying Six pillar of customer experience to the Tesco.
Integrity: Tesco regularly organizes trust building events for their customers in order to
increase their engagement towards the brand and provide them with higher quality of output.
Behavioural economics grip that as people trust. The power to build resonance at an elementary
human level is therefore critical in creating trust with customer.
Resolution: COVID-19 has goaded speedy creation due to the various problems that
have been faced by Tesco. These practices may speed up a focus on solutions. Rather, then
products and compulsive action.
Expectation: Customer satisfaction is considered as the potential difference between the
expectations and delivery. Knowing, delivering and, if possible extraordinary expectations is an
important ability of the Tesco. Due to COVID-19, customer anticipation have become more
unstable. Understanding these dynamic expectation is an essential constituent of scheming the
appropriate solutions to the problems. Proactive belief setting communications will now be
expected as normal.
Time and Efforts: Changing unwanted obstruction, authorities for providing the
customer to accomplish their objectives rapidly and improve their loyalty. Due to COVID-19,
the business may be able to attract more customers to order products and services at their
doorstep.
Personalization: The customers under these circumstances explains about the different
aspects that are crucial for the development of the relationship between company and the
customers. The organization focuses to provide a better experience to the customers and increase
their motivation towards buying products and services of the company.

Empathy: Corporate goodness are the two words not ordinarily set collectively, but they
are now fundamental to how Tesco function from inside Tesco invest time to understand their
buyers needs and displays their care of its customers.
6. The implications of digital disruption to the delivery of the customer experience of Tesco.
Digital break is the change that happens when a brand new digital engineering and
businesses models impact the worth statement of present merchandise and facility. The fast
increase in the use of mobile devices for individual activity and work, a change sometimes
referred to as the analysis of IT, has enhanced the prospective for digital disruption across much
manufacture. Tesco is one of the major merchandiser in United Kingdom, accountancy for the
25% of all food market income offline and 43% of all food market gross income online. In the
past 15 years (Galanakis and et.al 2021.). Tesco is digitally innovating its clients experience,
enterprise framework and operational framework via investments in the latest internet site with
select and collect functions. A digitalized in shop experience and a data compulsive consumer
commitment level.
Implementation of a digitalized in-store experience:
In order to modify the productivity of the Tesco's operative framework, Tesco invested in
digital in-store opening. 'Examine as you buy ' hand-held tendency and own checking out
procedure platforms is arranged close to the regular staff check outs station to give buyers with a
application to do the checking out task without the participation from the Tesco staff. By the
organisation and operative framework it resulted in effectiveness in value saving as less staff
were needed to execute manual check out (Rosnizam, and et.al 2020.). However, self checkout
has come with some difficulty of its own. The less demand of staff oversight is leaded to
important levels of pretender for the Tesco of nearly 8 million British pound. Tesco is turning
this theft via digital slip application and special cctv at self checking out counter to alert worker
real time to irregular client examine act.
Development of Tesco Club-Card an intelligent data driven customer loyalty scheme.
The Tesco club-card fidelity strategy label a specific consumer ID to each buying ,
consequent to the combination of countless of buyers buying data points. Tesco investing big

information search and method to adjust the provision chains and merchandise offer to buying
tendency, foretell future consumer buying custom and create individualized online and offline
offers. This has formed possibility for Tesco's business and operating model as approx. 16.5
million purchasers endorse to Club-Card to the Great Britain (Shankar and et.al 2021). Impulsive
greater client lifetime worth and commitment via repetition purchase because of individualized
offeres and giving greater exactness into predict client need by location and good class.
7.Strategy to improve Customer's experience in Tesco.
Creating an immersive shopping experience:
It very easy to shop online in comparison to buying in the retail stores. With a few clicks,
the purchase will be delivered straight away to home. But sometimes buyers want more instead
of shopping online they want to shop offline (Monte, 2021). Brands that recognize this will
surely win the competition. For instance Tesco uses raise reality to buyers can" try” the make up
they want to buy using an app on their phone. Now purchaser can discovery the best colour of
the lipstick before purchasing them.
Happy Employees leads to Happy customer's:
If the employees is happy then the customers are automatically happy (Alexander, 2020).
For instance, high employee's disappointment leads to turnover rate that can make business look
unstable, whereas happy worker are much loyal and present a consistent, reliable and enlightened
face for buyers. Rising trust in the brand happy employees are more likely to cooperate and put
the time and attempt essential into crafting a great experience.
CONCLUSION
As per the above project it has been concluded that Tesco value proposition is to provide
the lowest price possible and main purpose was to cater its customer's with the low prices and its
core purpose is to serve to its buyer, communities and planet little every day. Furthermore, it
highlighted the consumer experience of the Tesco and its customers and the demographic. It also
has details about the six towers of the consumer experience and implementation of it on the
Tesco. Moreover, it has implication of digital disturbance to the transportation of the customer

experience of the Tesco. In the last it also has strategic recommendation for improvement of
customer experience for the customer.

REFERENCES
Books and journals
Rosnizam, M.R.A.B., et.al 2020. Market opportunities and challenges: A case study of
Tesco. Journal of the Community Development in Asia (JCDA). 3(2). pp.18-27.
Galanakis, C.M. and et.al 2021. Innovations and technology disruptions in the food sector within
the COVID-19 pandemic and post-lockdown era.Trends in Food Science &
Technology.110.pp.193-200.
Keiningham, T. and et.al 2020. Customer experience driven business model innovation.Journal
of Business Research.116. pp.431-440.
Mohd Satar, N.S., Dastane, O. and Ma’arif, M.Y., 2019. Customer value proposition for E-
Commerce: A case study approach.International Journal of Advanced Computer
Science and Applications (IJACSA).10(2). pp.454-458.
Rodríguez García and et.al 2021. E-grocery retailing: from value proposition to logistics
strategy. International Journal of Logistics Research and Applications, pp.1-20.
Shankar, V., and et.al 2021. How technology is changing retail.Journal of Retailing.97(1). pp.13-
27.
Leone, D., Pietronudo, M.C. and Dezi, L., 2022. Improving business models through augmented
reality applications: evidence from history, theory, and practice. International Journal
of Quality and Innovation. 6(1).pp.28-42.
Alexander, I.N., 2020. The influence of technological innovations on organization's competitive
advantage: Case study on Irish food retail company (Tesco) (Doctoral dissertation,
Dublin, National College of Ireland).
Monte, A., 2021. A study of value chain reconfiguration processes under Covid-19 pressures: the
case of Tesco PLC in the United Kingdom.
Mbama, C.I., Ezepue, P., Alboul, L. and Beer, M., 2018. Digital banking, customer experience
and financial performance: UK bank managers’ perceptions. Journal of Research in
Interactive Marketing.