Tesco's Customer Experience: Analysis & Recommendations

This report provides a comprehensive analysis of Tesco's customer experience, examining its value proposition, target customers, and the application of the six pillars of the Customer Experience Model. It critically evaluates Tesco's performance against this model, highlighting both strengths and weaknesses, such as pricing strategies, ethical considerations, and customer service gaps. The report also identifies digital problems, including IT system issues, geoblocking, and data security concerns, that hinder the delivery of a positive customer experience. Finally, based on the CE model and identified digital challenges, the report offers strategic recommendations for improving Tesco's customer experience, focusing on enhancing customer communication, resolving service issues, and leveraging digital solutions effectively. Desklib provides access to this and many other solved assignments for students.

Customer Experience
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Table of Contents
INTRODUCTION...........................................................................................................................3
1. What is the value proposition of the selected organisation.....................................................3
2. Explain about the value proposition that affects the customer experience.............................4
3. Who are the customer targets of their company on the basis of value proposition and
customer experience ...................................................................................................................5
4.What are the six pillars of Customer Experience Model.........................................................6
5 Critically evaluate the customer experience model for the selected organisation...................7
6Explain about the digital problems to the delivery of customer experience for the chosen
organisation.................................................................................................................................7
7. According to CE model and digital problems faced by the company, explain about the
strategic recommendations that can help in improving the customer experience.......................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Customer experience refers to the perception and related feeling after using the particular
products and services. It is also the cumulative effect of interactions with a supplier's employees,
systems, channels or products.
Company Overview
TESCO is a British international groceries and general retailer. It is currently operated in
different 11 countries becoming one of the world's largest retailers. It has diversified into
different areas such as retailing of books, clothing, electronics, furniture, toys, petrol, software,
financial services and internet services. (Kandampully, and et.al., 2015) TESCO is listed on the
London Stock Exchange and also a constituent of the FTSE 100 index. The below graph shows
about revenue earned by TESCO from 2007 to 2020.
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Illustration 1: Historical revenues and results TESCO plus estimates 2020
Source: valuespectrum.com
1. What is the value proposition of the selected organisation
The value proposition of TESCO company is driven by certain schemes which includes
understanding the customers choice, identifying customers preferences, increasing competitor y
options, avoiding monetary value wars, improving service quality, focusing on those parameters
which are meaningful for the customers. The company is focusing on adding value to their
products and services so that customers attract towards their particular store. Understanding the
different perspective of their customers hold the value proposition for the longer time duration.
Customers purchase those things which are mostly required by them, they do not purchase
characteristics, merchandise or services. (KhodamoradPoor, and et.al., 2020) TESCO focused on
always remaining energetic and be foremost for clients. Use their strengths to present unbeatable
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value to our clients. They have studied that monetary value can be one of the most important
factors which could convey clients to them. TESCO has always focused on maintaining quality
as the monetary value cuts. Giving club cards to their customers is also a very good scheme for
stealing the customers from other supermarkets. Because club cards gives all the information
about their customers whatever the company needs. It helps in analysing the customer buying
trends and how much they are purchasing particular products and services. For maintaining its
value and increasing revenue they have started giving private label. TESCO thought to give more
to bing clients in bing shops. For selling the merchandise with which they tried to give about
same quality of top trade names with inexpensive monetary values. For maintaining the value
proposition of their company they always try something new for maintaining their stand in the
market. Also make the proper efforts for attracting major clients towards them. In this way,
TESCO is very different from other supermarkets or retail stores.
2. Explain about the value proposition that affects the customer experience
TESCO'S value proposition affect the customer experience on a very large scale. Their
value proposition can understand about the customers product needs, communicate about the
specified added benefits and also has the ability to explain why their similar products are better
than other brands. Due to these reasons the customer experience has come into the positive
spectrum. They are very clear about what they want to convey to their customers and also
convey it in few lines. The company always comes with their unique ideas which help in
improving the customer experience. (Nasır, S., 2017)They always try to launch relevant products
for their customers which are according to the market trend. The company always try to bring
differentiated services, new schemes for their customers so that they can make their customers
happy. Consistency is always maintained so that they do not receive any negative feedback in
any perspective. The company is also involved in the clothing sector so they also take care about
their customers that they have the availability of all sizes with proper fittings because customers
feel very happy when they get those products which they exactly want. The company avoid
marketing hype, superlatives and business jargon. They have kept their objectives very clear and
do exactly planning in that manner through which they benefit their clients. The company also
maintained quality in communication with their clients whether its through phone or email
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because it will help in creating a good customer experience. They have maintained consistency
in their communication level so that customer need not to worry for their problems with longer
time duration. In this manner value proposition is also very important for maintaining a good
customer relationship or experience.
3. Who are the customer targets of their company on the basis of value proposition and customer
experience
TESCO company has targeted those customers who are cost-conscious and are earning
low and middle-level income having their young children. On the basis of the value proposition
and customer experience, mainly youngsters are targeted by the company. The individuals who
are targeted mainly interested in bargains, sales and value variety of choice. The category of
people involved under the company's target are: students, professionals and employees.
Generally all age categories individuals are there who interested in buying from their stores.
There are certain kinds of families who frequently visit their retail stores. (Zhao, and et.al., 2019)
It includes single individuals, nuclear and extended families. The kind of social status people
who are targeted by the company are: working class, skilled working class, lower middle class
and middle class. High school individuals, technical people and bachelors are also targeted by
the company on the basis of value proposition and customer experience. Because these kind of
category of people are mostly concern about the value, quality, quantity, the kind of services they
are receiving and on the basis of that customer experience has been created. Traditional families
and contended conformers are also interested in doing shopping from their stores. Overall young
generation except small children and old-aged people are focused and targeted by the company.
The people who are interested in taking cost advantage from their stores, easy-going and
determined people are also targeted by the company. The company has created such type of
strategies so that they can focus on large number of people from the market. The value
proposition and customer experience has helped the company in producing the particular type of
products, services and also support in making the stand in market.
4.What are the six pillars of Customer Experience Model
The six pillars of customer experience was developed to showcase businesses the kind of
emotional outcome. The six pillars are of the following:
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Illustration: Customer Experience Model
Source: Slideshare
 Integrity: The foundation of integrity is that to create trustworthiness on a consistent
basis. TESCO has developed its integrity through pricing system. They have not

overcharged from their customers. They have set nominal prices for their products and services.
 Resolution: For turning a bad experience into good one, the successful resolution
elements are a sincere apology and acting with urgency in correcting the wrongs.
TESCO has taken initiative in launching healthy food products and different schemes for their
customers so that any poor experience with their previous products can turn the mindset of
customers into positive manner.
 Expectations: The best brands always set high standards for their customers. So its a
normal thing that the customers have high expectations from their buyer. TESCO has
fulfilled the expectations of their customers by researching about their audiences, make
sure about reaching to the right kind of buyers, look for the new ways to meet the needs
of customers.
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 Empathy: Understanding the customer needs in an emotional manner is the proper way of
creating empathy and strong relationship with their customers.(Cui, and et.al., 2017)
TESCO has build strong relationship with their customers through club cards and option
to use reward points can help in developing a deep connection with their customers.
 Personalization: Understanding the customer specific circumstances and adapting to the
experience accordingly is a key part of personalization. If the customers remain loyal
with TESCO then they offer club cards, deliver first class services to their customers and
provide high range of products with best quality. In this way, the company has
personalized with their customers.
 Time and effort: Removing obstacles which delays in the customer decision making
process and helps the company in achieving their objectives. TESCO has reached to their
customers through social networks with specific details and queries. In this way, it helps
in reducing the time and effort for both company as well as their customers.
5 Critically evaluate the customer experience model for the selected organisation
According to the customer experience model, for maintaining the good integrity they
have to set proper price for their customers. But TESCO has used low cost strategy which leads
to the reduced profit margins.(Nusairat, and et.al., 2020) TESCO retails factory-farmed meat and
non-free range eggs which comes under the category of unethical area. The company can't find
out the successful resolution for it. Sometimes TESCO has lacked in their customer service
point. Not delivering the proper services to their customers can lead to the negative feedback of
their client which will reduce the market share in future. If company's approach is always in
practical manner and do not connect with their customers emotionally then the company can't be
successful in retaining their customers. So its important to take care about their customers for
maintaining their brand name in the market. If company does not understand the circumstances
of their customers then they can't find out the solution of their customers problems.(Rihova, and
et.al., 2018) TESCO is facing challenges with the quality of goods and services. Sometimes
company's real service agents are unable to answer the solutions of the problems of their
customers. They don't have exact knowledge about the products and services due to which
company's time and effort goes into the negative drain. So customer experience model has to
fulfil all the criteria s for satisfying and make them happy in positive manner.
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6Explain about the digital problems to the delivery of customer experience for the chosen
organisation
TESCO has to face issues with their IT systems meant in some cases they were unable to
pick some of the orders placed through its grocery home shopping service. Due to this problem
they are facing issues with some online grocery shopping orders. They have claimed that less
than 10 percent of its customers have been affected by this issue. Customers have also started
cancelling their orders at last minute due to this negative situation which results into creating a
negative impression in the minds of their customers. (Della Corte, and et.al., 2015) They have
started complaining about orders through social media and posted on tweeter regarding this
issue. TESCO has faced some challenges in the European market to understand the need of their
customers and it is also difficult to execute digitally for understanding their market needs. Geo-
blocking is one of the factor that affect the e-commerce by retailers in Europe. Under this
blocking customers can't purchase some goods and services from particular countries. In
implementing e-commerce, it is difficult for the company to secure themselves about data and
also faces problems in maintaining the privacy. When customer comes to know about this
problem then they become insecure for shifting themselves for online shopping. In this manner,
it degrades the customer experience about the company. TESCO has faced problems on the
operation part of the digital implementation of the company.
The process of adopting and implementing e-commerce was a major challenge for transforming
its operations to meet the needs of the electronic age. The high cost is also invested for
maintaining and overcoming their competitors also a very big challenge for the digital
implementation of the e-commerce platform.
7. According to CE model and digital problems faced by the company, explain about the
strategic recommendations that can help in improving the customer experience.
For improving the customer experience, it is important for the company to take steps for
the improvement of their e-commerce platform. The company needs to do some investment
which will help the customers to easily access their website and does not face any problems in
ordering their orders. On the basis of customer experience model, the company should work on
the pillars of this model which will help in improving the customer experience in the positive
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manner. The company has to maintain strong relationship with their customers and always be
active in turning their bad experience into good one by using their skills and their new ideas.
(Ngo, V. M. and Nguyen, H. H., 2016) TESCO has its big brand name so customers have their
high expectations from them so they have to maintain the consistency in fulfilling the
expectations of their customers. The company needs to work on their services by attaching with
their customers in an emotional manner so that they can understand their problems in an
effective manner. They have to also understand the circumstances of their customers so that they
can deliver the services on a very fast scale. The company has to take care about the time and
effort of their customers if they are ordering something very specific on a very urgent basis so its
important for the company to satisfy their customers in a positive manner. In this way, by using
these methods, strategies they can help in improving the customer experience.
CONCLUSION
Customer experience is very important for every kind of business. Customers are the
main parameter for improving their revenue, generating new profits for themselves. Companies
need to take care about the experiences of their customers so that they can link more customers
into their chain of associating with their company's products and services.
If your customers are happy then the company will receive good feedback and it also helps in
increasing their market share. (Sastra, B. A. and Indrawati, I., 2018)On a continuous basis if
company receives good results, then it showcase the good picture at the international level. Once
company has started associating with their foreign clients then the company can emerge as a very
big brand in the market. So customer experience can win the challenge for the company or can
degrade the value in the market as well.
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REFERENCES
Books and Journals
Kandampully, and et.al., 2015. Customer loyalty: a review and future directions with a special
focus on the hospitality industry.International Journal of Contemporary Hospitality
Management.
KhodamoradPoor, and et.al., 2020. Relationship Between Key Drivers Customer Experience
with Perceived Value and Loyalty of Them (Investigation of Players in the Football
Premier League as a Clubs Internal Costumer).Consumer Behavior Studies Journal,7(1),
pp.72-88.
Nasır, S., 2017. Customer Relationship Management as a Customer-Centric Business Strategy.
InAdvertising and Branding: Concepts, Methodologies, Tools, and Applications(pp.
649-685). IGI Global.
Zhao, and et.al., 2019. Predicting overall customer satisfaction: Big data evidence from hotel
online textual reviews.International Journal of Hospitality Management,76, pp.111-121.
Nusairat, and et.al., 2020. The effect of design of restaurant on customer behavioral intentions.
Management Science Letters,10(9), pp.1929-1938.
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Della Corte, and et.al., 2015. Customer satisfaction in tourist destination: The case of tourism
offer in the city of Naples.Journal of Investment and Management,4(1-1), pp.39-50.
Ngo, V. M. and Nguyen, H. H., 2016. The relationship between service quality, customer
satisfaction and customer loyalty: An investigation in Vietnamese retail banking
sector.Journal of Competitiveness.
Sastra, B. A. and Indrawati, I., 2018. Measuring the Influence of Customer Experience on
Customer Satisfaction, Loyalty Intention and Word of Mouth Behavior Using Customer
Experience Quality (EXQ) Model on Telkom’s IndiHome Complaint Handling
Process.Sustainable Collaboration in Business, Technology, Information and Innovation
(SCBTII),1(1).
Rihova, and et.al., 2018. Customer-to-customer co-creation practices in tourism: Lessons from
customer-dominant logic.Tourism Management,67, pp.362-375.
Cui, and et.al., 2017, July. Superagent: A customer service chatbot for e-commerce websites. In
Proceedings of ACL 2017, System Demonstrations(pp. 97-102).
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