TESCO's CRM Strategies: Customer Acquisition, Retention, and Loyalty

This discussion board post examines TESCO's Customer Relationship Management (CRM) model, providing an in-depth analysis of its application within the retail sector. The post explores TESCO's approach to customer relationship development, focusing on how the company identifies, acquires, satisfies, and retains profitable customers through effective communication and quality customer service. It delves into the role of Customer Lifetime Value (CLV) in customer acquisition and retention processes, evaluating the congruence between these strategies. Furthermore, the post critically assesses TESCO's ability to enhance customer loyalty, highlighting the factors contributing to customer preference for TESCO products. The analysis references relevant academic sources to support its claims, offering a comprehensive understanding of TESCO's CRM practices and their impact on customer relationships and business success.

Discussion Question

Table of Contents
MAIN BODY...................................................................................................................................3
1.CRM MODEL of TESCO........................................................................................................3
2.Relationship development with the customers and discuss how the company identifies,
acquires, satisfies, and retains profitable customers. .................................................................3
3. CLV consideration in the customer acquisition and retention processes and evaluate their
congruence..................................................................................................................................3
4.Critically assess the business’ ability at enhancing customers’ loyalty...................................4
REFERENCES................................................................................................................................5

MAIN BODY
1.CRM MODEL of TESCO.
Customer relationship Management (CRM)- It is the theory which directly relates to the
customer's relationship. This theory explains how to manage appropriate relationship in the
industries of services such as in retail sector. In order to manage the customer relationship,
company is effectively utilizing this theory. TESCO is managing its interaction with present,
future and expected customers. This theory specially focus on the retention of consumers and
their sales and profit maximisation of company. The capital role played by CRM is to engage
each consumers in a productive exchange of takings that helps company to engage each
consumers in productive manner. TESCO is not utilizing this model only for maintaining
customer relationship but company is using this model to support sales, services, order analysis,
strategies and marketing (Konrath and et.al, 2017). Company is managing its human resources as
well by using this model.
2.Relationship development with the customers and discuss how the company identifies,
acquires, satisfies, and retains profitable customers.
Relationship development means when company maintains its relationship with
customers by focussing on achieving customer loyalty and repeat business by developing
powerful and optimistic relationship. TESCO is making effective relationship with their
customers through effective communication and quality of customer service. TESCO is
developing its relationship by following the stages of CRM model. The management of company
is identifying its potential customers by targeting the market (Bani-Yaghoub and Reed, 2018).
After than company is promoting its product in much attractive way in order to acquire the
potential customers. Further, company acquires the customers than it is very necessary to satisfy
them by giving quality of products and better customer services. Last the most important stage
of CRM model is to retain the customers.
For example- TESCO is giving better customer services to retain and satisfying its customers.
Company is also doing effective advertisement and promotions to attract potential customers.
3. CLV consideration in the customer acquisition and retention processes and evaluate their
congruence.
Customer lifetime value (CLV)- this theory determines the logical thinking of all the
values a business will conclude from their whole relationship with customers. The customer's

relationship of TESCO is adorable. Customers are fully satisfies by the quality of services and
from services of customers. TESCO not only approach its products only by attracting them by
flourishing advertisement but it TESCO is retaining its customers for long period. The
management of company is implementing this theory to understand its customers. The decision
of sales, marketing, development of products and customer support is done by the help of CLV.
TESCO is getting 360 degree view by evaluating acquisition of customers and retain them and
bring loyalty as well (Qi, Zhou and Li, 2017).
4.Critically assess the business’ ability at enhancing customers’ loyalty.
Customer loyalty means when customer prefer to use particular products rather than
buying other products of different companies. For example- In UK the most preferred products
in retail store is the products of TESCO as because it has ability in increasing their customers
loyalty. The key objectives is CLV is customer loyalty. TESCO has made its customers that they
have developed a sense of loyalty. Company has build good relationship with customers by
providing them quality of goods and effective customer services. There are four factors theat
TESCO is promoted it loyalty which are psychological, economic, technical and last contractual
factors.

REFERENCES
Books and Journals
Konrath, R and et.al, 2017. High-speed PIV applied to wake of NASA CRM model at high Re-
number sub-and transonic stall conditions. CEAS Aeronautical Journal, pp.1-8.
Qi, J., Zhou, Y. and Li, J., 2017. Measuring Customer Lifetime Value in a Semi-Contractual
Transaction Setting with Artificially Truncated Duration.
Bani-Yaghoub, M. and Reed, A., 2018. A methodology to quantify the long-term changes in
social networks of competing species. Ecological Modelling, 368, pp.147-157.

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