Retail Issues and Application Report

This report delves into the critical aspects of customer relationship management (CRM) within the retail sector, focusing on issues affecting customer-organization relationships. It examines various factors such as user experience, predictive analytics, technology, and marketing strategies, using examples from companies like Marks and Spencer, Tesco, and others. The report critically evaluates these issues and explores different CRM models, including the IDIC model, QCI model, and CRM value chain model, to address these challenges. It also discusses aspects of loyalty building, such as trust, relationship satisfaction, and commitment, and various attempts by retailers to enhance customer loyalty. The report concludes by emphasizing the importance of effective CRM for maximizing profitability and growth in the retail industry.

Retail Issues and
Application

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Illustration Index
Illustration 1: IDIC Model...............................................................................................................4
Illustration 2: QCI model.................................................................................................................5
Illustration 3: CRM value chain model............................................................................................6
Illustration 4: Customers' loyalty.....................................................................................................8

INTRODUCTION
Retailing term refer to the processing of selling products and services. For this process
various distribution mediums are required. The major objective of this process is meet demands
of clients and attract them. With the help of this activity organisation is able to present their
goods into market. Customer relationship and management is considered as an essential element
for the company. It directly affects the growth and profitability of business organisation.
Therefore, firms focus in order to maintain relationship (Agrawal and Smith, eds., 2015).
There are various that affects, such as quality of services provided to users, satisfaction
and so on. In order to maintain this core element a dedicated management unit is established
known as customer relationship management. This report is base on retailing application and
services with this respects to customer relationship. It is presented in context with Markers and
Spencer. It is one of the leading multinational brand of UK (Bae and et. al., 2014). They are
providing services in various sectors. Such as luxury clothing and food are much popular among
audiences. They are also considering it as an essential factor in order to increase growth and
profitability of company. In this report issues are discussed that are affecting. Different theories
and models are also considered in order to maintain this relationship.
MAIN BODY
There are various issues that are affecting relationship between client and organisation.
Such as user experience, predictive analytics, marketing, technology, social business and tools
that are being considered for this process. There are various research that are supporting these
factors. Markers and Spencer, Tesco and various companies are facing issues related to customer
relationship. Such as user experience, In this produces products and services to make life of user
easy and comfortable. For this they always try to develop high quality products (Benrqya, 2015).
With the help of this, they are able to attract clients and increase profitability. However,
sometime services are not provided up to the mark. Bad quality products diminish the image of
company. Through which clients do not prefer their products and move towards other service
provider. During this process customer relationship management and loyalty of organisation get
influenced. Along with this it creates huge impact on the clients – organisational relationship.
Therefore, users experience is considered as an essential factor (Bhattacharya, 2015).
Predictive analytics is considered as another issue. In this approach to identify desire and market
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trends. Along with this it also implemented in order to analyse psychology and demands. But
some these analytic get failed (Crespo and et. al., 2013). During such situations direct impact
falls on the organisation. Sometime duration between research and implementation also
increased, due to which proficiency of services get reduces. It directly affects their relationship
with clients. Technology is equally responsible such as ineffective implementation are
considered as an important step to present unique image into market. During this process, various
challenges occurs, in case all the challenges are not, encountered effectively they may cause
huge failure.
These all process make huge impact on the relationship. Apart form the development
process, various distribution channels are also affecting the process. Such as cloud storage and
online services (Hoehle and Venkatesh, 2015). Implementation of tools are sometime ineffective,
which leads emergences of various tools results into bad qualities of services and products.
Therefore, companies are facing this issue major into retailing sector. During this process, when
bad quality of services are presented to the clients the customer satisfaction and loyalty get
affected. In order to resolve all these issues all the business organisations are considering various
customer relationship management models and approaches. Along with this customer loyalty is
equally important for the companies therefore, they are also making strategies in order to
improve them.
Retailers Responses
In order to resolve this issues various retailers have provided their responses. With the
help of this they are trying to improve customer-relationship-management. They are
implementing these strategies at their level to improve customer-relationship-management and
loyalty. According to the survey of 2015, retailers of various multinational companies had
presented their responses about necessity of this relationship (Hunt, 2017). For this various
issues are considered some of the best issues are like, according to TESCO, 24*7 customer
services in order to provide solutions of their problem and queries is an optimum way to
maintain relationships. Along with this it reduces the formal relationship into friendly
conservation. On the other hand, Next consider accuracy and preciseness as an essential step in
order to maintain relationship. With the help of this process organisations are able to improve
experience of their clients. It results into strong customer relationship (Hunt, 2017). However,
New Look B&Q are giving emphasis on the distribution channel that is considered to provide
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services to clients. With the help of this process companies are able to provide services
effectively. They are also considering profile and reputation of brand as an essential factor. As
loyalty of customer results into profitability and growth of company. Therefore, various rewards,
policies and schemes are provided to their clients. Along with this efficiency improvement
strategies are also introduced (Migdalas, Pardalos and Värbrand, eds., 2013). With the help of all
these steps they are able to manage effective results.
Critically Evaluation
On the basis of above report there are various issues are critically analysed. That are
creating huge impact on the user and organisational relationship. Markers and Spencer, TESCO,
NEXT, B&Q and so on are considering it as an essential process, in order to increase growth
and profitability of company. Various issues are determined some of them are user experience,
ineffective predictive analysis, implementation of techniques, tools and marketing strategies. In
order to resolve these problems various units and departments are established into organisation
(Molyneaux, 2014).
These units are dedicated in maintaining the relationship by satisfying and maintaining
loyalty to their clients. Along with this various other combinations are also integrated such as
technologies and tools after testing (Santoso, Kurniawan and Gunawan, 2015). This process
increases the effectiveness and make huge positive impact on clients. Along with this various
offers and rewards are provided to them for effective results. CRM is important for companies
because helps to maintain balance between sale and purchase, due to which profitability ratio
always get increases. Able to improve action plan for attracting more clients. Various efficient
approaches can be considered faster growth of company.
Theories and models
Customer-relationship-management and loyalty is considered as an essential factor for
the growth and profitability of companies like TESCO,Markers and Spencer,NEXT, B&Q.
Therefore, various models are available in order to maintain relationship such as operational
customer, CRM life-cycle, tactic integration, IDIC model, QCI model and so on (Zolnowski,
Weiß and Bohmann, 2014). Through implementing these model companies are able to improve
their relationship. Some of them are following:
IDIC model
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Under this approach process is converted into four stages. Such as identification of
needs, differentiating them on the basis of several factors, interacting and customizing them.
With the help of this organisations are able to understand clients closely. This approach is
considered by most of the companies such as Markers and Spencer, TESCO, NEXT, B&Q and
so on. The four steps are following:
(Sources: Zolnowski, Weiß and Bohmann, 2014)
 Finding needs: This is considered as initial step of this model. In this step determination
and identification of clients needs takes places. Deep understanding is also developed in
order to maintain relationship (Zolnowski, Weiß and Bohmann, 2014).
 Differentiating: In this step customers are identified on the basis of their demands. It
helps the organisation in order to implement strategies accordingly. With the help of this
process firms are able to distribute their task into categories to provide satisfactory
results.
 Interacting: With the help of this step companies are able to understand needs and
exceptions from other brands. Therefore, they are able to implement effective changes in
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Illustration 1: IDIC Model

order to improve interaction with customer (Spaargaren, Oosterveer and Loeber, eds.,
2013).
 Customising: In this process offers and services that are provided by clients are
implemented. This is considered as last step of this process. Through this way companies
are able to develop deep knowledge about behaviours and interest of customers.
Quality Competitiveness Index model
(Sources: Spaargaren, Oosterveer and Loeber, eds., 2013)
QCI model is considered as specialized model. It consists of both theoretical as well as
practical approaches. Under this process all the activities takes place in chronological order.
Along with this is integrate various factors that may affects the relation. Such as staff, audiences,
techniques and company. Various business factors are also included in this process. Therefore,
strategies are implemented by considering all the factors. Through applying this model company
is able to identify activities with users. Therefore, it is considered by most of the organisations
such as Markers and Spencer, TESCO, NEXT, B&Q and so on (Spaargaren, Oosterveer and
Loeber, eds., 2013). On the basis of that targeting and selling process initiated. It helps in
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Illustration 2: QCI model

attracting clients and maintaining customers. Through this process they are able to maintain
customer-relationship-management.
CRM value Chain model
(Sources: Migdalas, Pardalos and Värbrand, eds., 2013)
This is considered as an effective approach for SME organisation (Zolnowski, Weiß and
Bohmann, 2014). With the help of this approach, they are able to make various element of
company effective. Such as software, hardware, accounting, telecom, developing, media and so
on. With the help of this model, companies are able to fulfil requirement of company related to
clients. In this approach process takes places in the form of chains, to assure building and
developing activities of companies. During this process various strategies are implemented, but
out of them one few are effective. The processing of this model is distributed into five steps that
are following:
 Consumer Portfolio Analysis: This is considered as initial stage of this process. There
are various questions are considered in order to identify specific needs of clients. With
the portfolio leading companies like Tesco, Coca cola are able to establish foundation of
their process (Migdalas, Pardalos and Värbrand, eds., 2013).
 In order to make this process more effective business organisation should be able to
understand needs of their client.
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Illustration 3: CRM value chain model

 Client Intimacy: In order to effectively implement this step they put more efforts in
gathering data. For this process various sources are considered by companies such as
files, scanning and market segmentation approach. On the basis of results strategies are
considered to maintain long term relationship (Juan and et. al., 2015).
 Development of network: With the help of this process organisations are able to remain
connected with the clients. It helps them in order to build their relationship more strong
and effective. Along with this it maintains value of sales and purchase by involving
various elements. Such as effective distribution channel, stockholder, retailers and so on.
 Preposition developing process: This is considered as fourth step of this process. With
the help of this step organisations are able to develop process and effectively implement
network. During this activity, company achieves a specific position and range in market
which refers to their brand value or market position.
 Maintaining relationship: It is considered as final step of this process. At this stage all
the previously implemented steps are analysed in order to maintain effective customer-
relationship-management and loyalty (Hoehle and Venkatesh, 2015).
The Maturity model
With the help of this tool company is able to rate them on the basis of various factors
such as capabilities and performance. In order to generate effective results various sources are
considered such as interaction of firm, implementation of strategies, value and positioning of
both clients and organisation. On the basis of all these factors performance measurement step is
takes places. Through which they are able to rate and score activities. This is considered as an
essential step with the help of which they are able to analyse effectiveness of process. On the
basis of implementation of strategies takes places (Crespo and et. al., 2013). Through providing
services of effective quality companies are able to attract clients and maintain relationship
effectively. Along with this they are able to improve performance and positioning into market.
On the basis of above applied process, various tools are implemented according to the
need of process. With the help of this process. Scoring and ranking of the process takes places.
Along with this proper description of each activities are also provided. On the basis of provided
description various changes are introduced in order to get effective results. In order to implement
this step effectively, five conditions are also considered (Bhattacharya, 2015). Such as activity
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and culture, HRM processing, effective management of data and information, designing and
organising. With the help of these conditions all the steps will be implemented effectively.
Aspects of loyalty building
It is the attitude and behaviour which customer have regarding the particular brand. This can be
based on the several factors such as convenience, performance, price, familiarity or their comfort
zone. Customer loyalty is very necessary as it is profitable for the organization and growth of
business. They are less expensive, more consistent in shopping, spend more, promote the
business (Benrqya, 2015). There are three aspects through which customers loyalty can be build.
They are trust, relationship satisfaction and commitment.
Trust: Building trust in the customers is very necessary. In the TESCO Plc. trust is developed
through the following things, they connect to the customers through the social media or any other
sources and take their feedbacks and reviews and implement in the organization. They are more
professional in their approach which brings trust, loyalty and respect from customers. However,
Wal-Mart in UK, promotes their business through the admitting their mistakes and customer
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Illustration 4: Customers' loyalty

convenience (Bae and et. al., 2014). They value their customer which builds strong relationship
among them. When taking about the ASDA they are consistent in their service which makes
them loyal to their customers. Their performance and services attracts more customers towards
their services.
Further, all three retailers deals with the inquires which promotes their business. The more faster
the response the more is trust build among the customers.
Relationship satisfaction: To promote the business relationship satisfaction is required as they
helps to expand the business. As we can see in TESCO plc. this are established using the
recognizing the employees and understanding their needs. This are the potential customers of the
company. Providing commitment and caring helps the organization to achieve high
complements. Further, they provide high positive and emotional comforts to the employees. This
helps the company to understand and share the views of each others. However, Wal-Marts
establish such relation through helping the customer in gaining their products, and supporting to
the community and environment. Such activities helps the customers to recognize about the
company. Further, they are responsible for their actions as they acknowledge their duties and
mistakes. They are more committed towards heir work and perform every necessary activities
which help them to build the relationship satisfaction (Bae and et. al., 2014). As per the ASDA,
they establish this things using the followings things such as balance their work and they provide
benefits to them. They encourage the community through their values and help them to learn new
things and grow. Along with this, they motivate and try to keep interest of the customer in the
firm.
Commitment: Followings things are performed by the company to remain committed towards
their customers.
TESCO plc. Wal-Mart ASDA
This things are performed
through the appearance,
attitude and responsibility of
the company towards
customers. `
The firm focus on the
friendliness, impression and
services they are providing to
customers (Bae and et. al.,
2014).
They mostly focus on the
personal excellence,
commitment, communication
and team thinking so that they
can show their commitment
towards the company.
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