Comprehensive Report: Relationship Marketing at Morrison Supermarket

This report provides an in-depth analysis of the relationship marketing strategies employed by Morrison Supermarket. It begins with an introduction to relationship marketing and CRM, highlighting their importance in today's competitive market. The report then evaluates Morrison's CRM, examining its customer portfolio analysis, customer intimacy initiatives, and network development. It delves into value proposition development, the management of the customer lifecycle, and proposed activities for customer retention, including email marketing, credit card offerings, and improved customer service. The report also discusses operational CRM and marketing automation, specifically focusing on Morrison's loyalty card program, and concludes by summarizing key findings and recommendations for enhancing the supermarket's relationship marketing efforts. The report is a comprehensive examination of Morrison's customer-centric approach.

Relationship Marketing
4/26/2018
Morrison Supermarket

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Contents
Introduction......................................................................................................................................2
Evaluation of Morrison’ CRM.........................................................................................................3
Customer portfolio analysis.........................................................................................................3
Customer intimacy.......................................................................................................................4
Network Development.................................................................................................................5
Value proposition development...................................................................................................5
Manage customer lifecycle..........................................................................................................6
Proposed activities to retain Morrison’s customers.........................................................................6
Operation CRM and Marketing Automation...................................................................................6
Morrison’s Loyalty card..................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................6

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Introduction
The aim of the report is to talk about the relationship marketing of the Marrison Supermarket.
Relationship Marketing is a sales approach that emphases on forming a long-term relationship
that helps the customer and business (Management Study Guide, 2018). On the other hand, CRM
is the acronym for the customer relationship management. In the competitive market, the
companies have realized that they have to implement relationship marketing successfully to get
closer towards the customer and market in which they are dealing as this will help the business in
understanding the needs of customers. Customer relationship management is described as an
enabler of relationship marketing in any organization. CRM comprises of different tools and
techniques that help the managers to engage the customers. Along with this, the relationship
marketing works as a strategic level and implementation of the strategy is possible with the help
of relationship marketing. Relationship marketing of Morrison Supermarket will be discussed in
the report that is related to CRM. The report also includes different activities of CRM followed
by Morrison.
Morrison is the fourth largest chain of Supermarkets in the UK with the headquarters in
Bradford, West Yorkshire, England. This supermarket was founded in 1899 by William
Morrison. The company believes in serving fresh food &grocery products across the UK with
more than 500 stores. Along with this, the company offers the online home delivery service
facility to its customers (Morrisons, 2018). Currently, the company has introduced a new
customer relationship management with the aim to focus on customers and to compete with their
big four supermarket rivals in the UK. This new system is developed by the Capgemini which

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will allow the supermarket to better analyze and understand the need of the individuals related to
their preference, taste, and others (Glenday, 2013).
Evaluation of Morrison’ CRM
Morrison Company knows the value of their customer and due to which they believe in
following effective customer relationship marketing (Zhang, et.al, 2016). Evaluation of the
Morrison CRM can be done with the help of CRM value chain along with the use of IDIC
model. This value chain is divided into two categories one is primary stages and another is
secondary stages. Below given is the analysis of the primary stages of the CRM value chain.
(Source: Buttle and Maklan, 2015)

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Customer portfolio analysis
This stage reflects that the business needs to identify the customers that it needs to target. The
company targets single, bachelors, working couples and busy occupied professionals along with
the international students and people who wish to work hard to save the money by having ready
means with the spices and good taste (Cohen, 2014). To identify the needs of the customers they
initiated “customer listening programme”. Morrison believes in listening to their customers and
brings the changes in their business operations. Through this, the company can understand the
needs of the customer's such lack of availability of products on shelves, no special offers, and
many others. After this programme, the company brought improvements in the availability of the
product on stores. This is the effective way through which the company can form effective
relation by providing them expected value. Customer listening programme helps the company to
interact with the customers which is essential considering the interaction component of IDIC
model.
Along with this, the company formed the strategy to strengthen the customer focus on the
implementation of the multi-channel CRM. The company has more than 490 stores in the UK
with approx. 131,000 employees serving over 11 million customers every week. Through this,
the company can build strong CRM by understanding and satisfy the tastes, preference and
shopping habits of the customers. Morrison can gather the details easily with the help of this new
system (Ippoliti, 2013). Considering the analysis, this can be said that the company is doing well
but not enough as there is need of improvement that helps the company to achieve the desired
goals and objective of company.

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Customer intimacy
Customer intimacy is another stage in which the company tries to engage with its customers after
collecting the information. It is essential for the company to get engage with the customers to
provide them the greater value than its competitors which is effective to retain customers
(Morrsions, 2018). Morrisons has enhanced the customer intimacy by forming a reliable price
strategy after considering the feedback from the customers. In additions, the employees of the
company were happy and celebrated with the customers when the company introduced price-
cutting strategy (Hobbs, 2017). Thus, this shows that employees share the happiness with
customers. This makes the customers feel valued and precious for the company.
(Source: Hobbs, 2017)
Price cut strategy of the Morrison Company was one of the strategies that are to build emotional
loyalty with the customers who are done with a price cut and the contribution of employees. This
successful price cut reflects the use of identifying component of the IDIC model is done
effectively which states it is essential for the company to identify the needs of the customers.

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Network Development
This stage of network development includes the interaction of all the stage of business and its
customers. The aim of the company is to enjoy the interaction with the customers to makes them
happy and satisfied with the services. After listening to the customers, the Morrison Company
came to know that they are not able to get shoppers experienced personnel at the right place. This
shows that the network development is still not completed (Vizard, 2015). Morrison Company
provided training to their employees and placed them in stores so that they can interact with the
customers and offer them delight services.
In addition, the company was looking into the areas of marketing logistics and head office for the
cost savings across the business as it looks to simplify and speed up. This is one of the effective
ways to build a closer relationship with the customers. The CEO of the company David Potts
said that marketing cost is part of careful programmes which in an effort to make the relationship
with suppliers simple and develop a direct relationship with customers.
Value proposition development
This stage comes when the company has learned much about their customers and have made the
decision regarding what they are going to serve in the market to their customers. Morrison
focuses on reducing the cost of products and services that are essential for creating value for the
customers (Kumar, 2010). The aim of the company is to provide one-stop-shop as this will be
convenient for them. Moreover, the company believes in offering practical services such as key
cutting, mobile repair stations along with the pick-up points. These practical services help the
company in getting connected with the customers and will help them to achieve the position of
leading online retailers. In addition, the company is offering different offers (including deals on
meal and bundle deals) on their products. It is recommended to the company to bring the new

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services such as a sitting area for the customers. It has been observed that in most of the
supermarket there is no sitting place for peoples. If Morrison will start providing this services
then they can add on the in the experience of the customers. Thus, the company will be able to
meet the Differentiate component of IDIC model which states that differentiate can be done on
the basis of value and need.
Manage customer lifecycle
The lifecycle of the customers is defined as his journey from the stage of being a prospect right
through to the end of the line when the prospect has become the customers of the company. The
effective experience of the customers comes with the proper processes and structure of its
organization (Linoff and Berry, 2011). The structure needs attending to customers, acquisition,
retention, and development of the customers.
Morrisson supermarket attains their entire customer whoever visits the store along with this they
attract the potential prospects to visit the store by offering them attractive services. When the
supermarket gets successful in acquiring the new prospects then they retain them by engaging
them in their business by showing their value and culture. In addition, the company tries to offer
the best of their services so that they get successful in retaining them. After retaining the
prospects becomes the customer of the company and makes the purchase of the products from
the Morrison. Later, the company makes such strategy so they can easily convert the customers
into the loyal customers.
Proposed activities to retain Morrison’s customers
Morrison needs to consider some activities that help them in retaining the customers. This is the
fact that Morrison is able to form the strong connection with their customers but still, there is

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need to improve the relationship after considering the evaluation of the company's relationship
marketing (Christopher, Payne and Ballantyne, 2013). Below are the activities that can be used
by the company for retaining customer: -
 Email marketing: - Company can make use of the e-mail marketing on the regular basis
which helps then in reaching to the maximum customers. Morrison Company can share
the content related to the discount and offers that they are offering to the customers.
 Credit card: - Company should endorse credit card to their customers in which the
company will provide them options so that the customer can make the purchase of
products from Morrison on credit card. This means that they don’t have to pay the
amount at that time and they can purchase it on credit.
 Improvement in customer service: - Company not only believes in service at the time
of purchase but also after sales. Therefore, the company should ensure that they are
meeting the changing demands of the customers, and provide those refunds, guarantees
and many others. Along with this, the company should acknowledge the complaint of the
customers and should take necessary steps to resolve them.
Operation CRM
CRM is an approach that helps the company to manage the interaction with the current and the
potential customers of the company. There are 3 different types of CRM; Operational CRM,
Analytical CRM and Collaborative CRM (Payne, 2012). Out of which the major CRM is the
operational CRM. Operational CRM refers to the services that allow an organization to take care
of their customers. It offers the support to the various business processes that include the sales,
marketing, and service (Greenberg, 2010). The relationship marketing activities that are

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proposed helps the company in forming a relationship with the customers. The description
related to the same has been discussed below: -
Email marketing- Morrison can share the content which will help them in attracting the
maximum number of customers as the content of mail will include the details related to the
discounts and coupons to the customers. This activity will also generate the awareness about the
services that the company is offering to their customers. Therefore, this will ultimately increase
the sales and revenue of the company and will help them in forming a relationship with new
customers.
Credit card- This activity of the company will help the Morrison Company in generating high
sales. The company will be able to form the relationship with the help of sales which is an
operational CRM. Along with this, they can form a trust relationship with the customers which
are essential for the future perspective of the company.
Improvement in customer service- Morrison ensures that are offering effective services to their
customers. The company provides the availability of the call centers, data aggregation system,
and website. Through all these services the customer can contact the company easily for sharing
their issues and feedback before the purchase of products and after the purchase of the product.
Marketing Automation
Marketing automation refers to as the software that exists with the goals of the automating
marketing actions. In simple words, it is referred to as the software platforms and technology
that is designed for the marketing departments and the organizations to perform the business
operations more effectively in the market on the multiple channels online and automate repetitive

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tasks (Todor, 2016). It is suggested to the company to make use of the Marketing Automation in
their loyalty card through which they are forming a relationship with the customers.
Morrison’s Loyalty card
Morrison supermarket is forming their relationships with the help of the loyalty card. The
company introduced the Morrison’s More Card through which the customers can earn the
market-leading reward on fuel and can earn points. This card has been sent to the existing
cardholders and gives them the opportunity to earn Morrison's More Points per pound spent in
the store. When any of the customers will be able to earn 5,000 points they will get the £5
voucher that can be used by the customers on the store (Morrisons, 2018).
This card will also provide the benefits listed below: -
 10 points per litre of fuel which is more than the other comparable loyalty cards offered
by different companies.
 The customers can easily earn the five points for every £1 spent in Flower Shop, Garden
Centre and pharmacy (Ankita, 2018).
 The customers of the company can easily earn more points on promotion in-store and
online.
 25 Morrison More points will be allocated to the customers for every £1 spends by the
customers on the gift card purchases of £10+ (Morrisons, 2018).
Application of marketing automation in Morrison
The company should make use of the marketing automation in the loyalty card which will help
them in managing the repetitive task for the emails, social media and other website actions (Jena,

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and Panda, 2017). There are different ways through which Morrison makes use of the marketing
automation in loyalty cards. Some of them are given below: -
Welcome Email
Whenever new customers get register with the Morrison supermarket through loyalty card then
they get a welcome mail from the company side. This is the first active communication that takes
places between the company and the user. To generate the welcome email for the very
customers the company make use of the marketing automation (Beck, Chapman and Palmatier,
2015). Moreover, now the company is willing to send the personalized mail to their customers in
which they provide the greeting with the name of customers. It is recommended to the company
to make use of the picture of the company in which they represent that they are welcoming their
customers which leave a good impression on the mind of the customers for the brand.
Activity Email
Morrison Supermarket provides an email to the customer whenever customer get to engage in the
programs and receive the progress towards the rewards. This is one of the effective ways through
which the company engage the customers with the brand. Moreover, through the activity mail,
the company gives the invitation to the customers to visit again to the stores for the purchase of
the product. The company is making use of the marketing automation in such types of email but
now the company is making it simpler (Bannister, 2017). They are making use of the clear and
simple visuals that reduce the amount of the text generally used in the e-mails. This will enhance
the chances of the contribution from the customer’s side.