Report on Tesco's Customer Experience: Value Proposition & 6 Pillars

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This report provides an in-depth analysis of Tesco's customer experience, focusing on its value proposition and the application of the six-pillar customer experience model. It begins by outlining Tesco's value proposition canvas, detailing customer gains, pains, and jobs, alongside Tesco's gain creators, pain relievers, and product/service offerings. The report then discusses specific practices Tesco employs to enhance customer experience, such as competitive pricing, club card incentives, online platforms, and private label products. A demographic analysis of Tesco's customer base follows, segmented by age, gender, social status, occupation, and income. The latter part of the report delves into the six-pillar model of customer experience—integrity, resolution, expectations, empathy, personalization, and time/effort—and assesses how Tesco integrates these pillars into its operations. The analysis covers Tesco's strategies for building trust, resolving customer issues, meeting expectations, demonstrating empathy, personalizing experiences, and optimizing customer time and effort, ultimately aiming to improve customer satisfaction and loyalty. Desklib provides students access to solved assignments and study resources.
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Customer Experience
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Table of Contents
Introduction................................................................................................................................3
Main body..................................................................................................................................3
Value proposition In Tesco....................................................................................................3
Customer profile.....................................................................................................................3
Value map..............................................................................................................................3
Six pillar of customer experience model................................................................................5
Six pillar model on tesco........................................................................................................5
Recommendations......................................................................................................................6
Conclusion..................................................................................................................................7
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Introduction
customer experience which is also known as CX, Is the process that used by the company and
developing the holistic perception off customers experiences with the inclusion of brand
services. In addition to this CX includes all the interactions and processes that performed
between a customer and business. Add includes from navigation of a product from a website,
asking with an expert for a product, talking to customer services and receive a particular
product that develop buy a company after performing various practices. In addition to the
above discussion the mentioned report well analyse the customer experience of Tesco.
The respected company is the retail supermarket giant of UK. The respected company was
founded in 1919 by Jack Cohen. In addition to this the mentioned report will highlight the
value proposition As well as manifests how they delivers customer service. In addition to this
various practices will be highlight such as customer experience model as well as their
application in the company function will be discussed in this mention report (Roy, 2018).
Main body
Value proposition In Tesco
In regard to offer the best services to its customers the respected company developed an
effective canvas of value proposition in accordance to its customer preference, needs and
wants. In addition to this the value proposition canvas is developed under 2 blocks such as
customer profile and company value proposition.
Customer profile
Gains- The customers which they mentioned companies targeting is rely on Value and price.
Moreover they also looking for multi channel and convenience that can help them in Their
shopping.
Pains- In UK people don’t have enough time to purchase various items from different
different stores so that they rely on the multi stores which can provides them all of the
product on a justified price with the quality. Customer always looking for and substitute
options which can help them in choosing a product from different different company.
Customer jobs the mentioned segment includes different task problem or wishes that
customer are intended to deal with, solve or satisfied. By performing such activity the
mentioned company understand their customer emotions as well as their preference and their
buying habits (Khan, and et. al., 2020).
Value map
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Gain creators- The mentioned company provides the quality of products to their customer at
a reasonable price. In addition to this company focuses on being innovative in their field so
that they can better shop to their customers. Through such process they deliver unbeatable
value to their customers.
Pain relievers- the respected company has a wide range of products in one roof. In addition
to this the respected company buy forget all their products in sequence so that customer can
identify the required products easily from the large stores. In addition to this being
competitive in market the respected company also spent on its research and development
department which focuses on understanding the customer needs and market scenario in order
to delivered better product and services.
Product and services- Tesco have the wide range of products with their substitutes on
different price ranges from premium one to lower one. Hence such process help the customer
to select the product according to their needs (Kuppelwieser, and Klaus, 2021).
Tesco value proposition practices in order to deliver the customer experience
In addition to the above discussion the respected company deploys number of factors in order
2 develop effective value proposition process and the operational market. In addition to this
below are the some factors that helps the company in order to deliver better customer
experiences.
Cutting down the price- the respected company make sure that their prices could not
beat by any competitor. In addition to this Tesco enhance their product ranges so that
their customer can get the better value from their products. Moreover the respective
company also enhance their product value as well as deploy bigger packs so that it
can attract customers towards there organization function.
Use of club cards- Tesco knows that customer attracts to the companies who deliver
discounts and coupons to their customers. Hence the mentioned company develop the
business strategies in which they offer club cards to direct customers in which
customer gained the points on there every purchase. These points can be redeemed in
next purchase As a discount.
Internet capture- by analysing the market respected company analyse that major number of
customers are drastically shifting towards online shopping. Hence in order to attract these
rush towards company function the mentioned organization develop an effective online
platform through which customer can order any product from their online stores. Through the
help of supply chain management the respected company efficiently develop the effective
pathway (Goodman, 2019).
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Private label products- they mentioned company recognised that customer world
looking for quality of products at a reasonable price. Hence in order to fulfill their
requirement they mentioned company launched its own label products in their stores
which provides same quality as of top brands with cheap price. And such practice
worked great for the mentioned company, it helped the respected organization in
order to enhance their revenue as well as sales. By performing such activity company
enhance their customer relationship and also got success in manipulate their
competitors customers too. The items which mentioned company sold under their
labelling r dairy products, wines and non foods, bakery items as well as meat.
Customer in Tesco according to their frequency and key demographics
From the analysis of above discussion which stated the value proposition as well as strategies
that adopted by the Tesco in order to resolve the customer issues as well as attract them
towards the company products. In addition to this the mentioned segment is analyse the
customer frequency according to the demographics in which company perform their function
in UK.
Age All age categories
Gender Females and male
Social status Middle class, working class
as well as lower middle
class
Occupation Professionals,
student,homemakrers as
well as employees
Income Lower and middle income
individuals
Gender and age- The above table clearly showed the customer that segmented by the
company according to demographics practices. In addition to this peoples with the age of 25
to 35 are one of the main customers for Tesco who attend shopping in their stores. Moreover,
the age of 50 to 60 are the lowest. As the company analysed they customer carefully, which
stated that the strength of participant in stores are more females in compared to males which
is approx 3:1.
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Occupation- home makers were at top which comes in the stores to shop they mentioned
company products in addition to this employees one second who comes frequently in Tesco
stores for shopping (Rather, 2020). The respected company use these stats In their operations
in order to enhance their performance as well as to deliver effective services to their targeted
customers.
In addition to this the respected company attract these customer segmentations which
discussed in the above topics through various techniques such as club cards, justified price
product with quality, substitutions of branded products etc. By the use of personal
information and companies operational activities Assist in order to enhance their customer
base as well as manipulate customers from their competitors. Moreover the respected
organisation also developed the repackaging strategies in stores in which customer can return
their used package To the company and can take benefits in the term of money. Therefore
these practices develop better customer experience which benefit the organization and better
sales and revenue.
Six pillar of customer experience model
The sexplayer model is the practice that is used by the companies in order to deliver an
exceptional service to their customers. The mentioned model shows the emotional outcome
Which can be combined with Co operation to deliver better customer experience. In addition
to this below are the brief discussion of these 6 pillars.
1. Integrity Organisations which Shows trustworthiness in their operations enhanced the
customer base as well as their relationship with company operations
. on a customer point of view companies which deliver their products according to their
promises to the customers Are the key of integrity. Hence customer majorly rely on these
companies which Which morally and ethically perform its operational activities.
2. Resolution Customer are the main key for every organization success hence it is
important to engage them in organization function. In addition to this customers who
faced bad experience in company operations need to be recovered again in organization
function. In addition to this organizations develop various strategic plans in which they
recovered their customers who faced issues in their practices or operational activities. No
Matter how good is the business strategies there are some times when customer can face
issue in a effective practices too. Therefore through adopting these issues frequently
could Health Organization and develop better customer experience in their operational
function.
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3. Exceptions The effective organization worked on customer needs and develop an
attractive products according to the customer needs and demands. Various organization
deploy research and development department which analyse customer expectations and
interact them in order to deliver product according to their expectation
4. Empathy Understanding your customer emotions is strongly associated with empathy.
Indragarh to disk developing an effective relationship with customers develop loyalty
customer base. The mentioned process assess the organization 2 understand dear
customer feelings and derives solutions according to their needs and such process is only
possible when they understand their customer base which is only possible by empathy
(Marinchak, Forrest, and Hoanca, 2018).
5. Personalisation The mentioned process stats that Customer should feel connected with
operational function of an organization. In addition to this companies need to deploy
practices in which customers feel that the organization understand their preferences. Such
insights can be derived through their past interactions, developing individualised attention
etc. Therefore it can work as an most reliable assets for organization to develop effective
customer experience in their operational function.
6. Time and effort nowadays customer don’t have enough time to spend on a particular
practice as they need instant Gratification. Hence by removing obstacles that could work
as an barrier in customer decision making. In addition to this these practices can can use
by organization in order to get the competitive advantage in their performance as it could
enhance customer base as well as revenue and sales (Batat, 2019).
Six pillar model on tesco
1. Integrity in order to develop the effective operational function in an organization the
respected company developed quality of products according to their promises and
delivered these high quality of products to their customers. Customer believes to the
mentioned company product as they always deliver high class products
2. Resolution respected company deployed various business strategies in their
operational functions dad help them in order to resolve customer problems. In
addition to this the mentioned company has the customer service dead timely took
reviews from their customers about the shopping experiences with organization. All
these feedbacks are addressed seriously and any loopholes which recognise by these
feedbacks are resolved quickly
3. Exceptions The mentioned company developed various product according to their
customer expectations. As the mentioned company always provide high quality of
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products which developed expectations by the customers towards the company of
high standards.
4. Empathy The mentioned company have a effective marketing team which
understand customer circumstances and developed effective strategies to establish
strong relationship between company and customer.
5. Personalization In order to develop emotional connection with customers the
respected company use their individualised information in their operational functions
that assist them to develop personalised experiences according to customer needs and
demand.
6. Time and effort To safeguard the customer important time the mention company
bifurcated there vast variety of products Systematically, which helps customers to find
their required products more efficiently. In addition to this the mentioned company
also deployed self billing counters through which customers can pay their bills
according to their cart by themselves.
Implication of digital disruption in Tesco to deliver customer experiences.
In order to deliver hi customer experiences in operations, the respected company consistently
enhance their digital platforms and technologies in their stores that assist them in order to
enhance their operational activity in the targeted market.
Frictionless stores the mentioned complete developed frictionless stores in London by using
tag from trigo. By the use of such technology customer can purchase their product without
any scanning checkouts or queues. By just simply clicking on products through Tesco app
can facilitate customers to shop products.
Ecommerce website the mentioned company also developed an effective ecommerce
website through which customers can order their products through their homes without
coming to stores. Through the help of effective supply chain management company delivers
all the products to their customers timely. The mentioned company also provides return
policy today customers which assist them in developing empathy and trust between both the
parties (Dou, and et. al., 2019).
Electronic point of sale the mentioned company also deployed computer system called
electronic points of sale in their operational stores which assist them in order to analyse
customers data in regard to loyalty points. Such technology helps in managing all the club
cards function more efficiently. By the such technology company decrease the operational
time which held the customer to perform their shopping practices more efficiently.
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Recommendations
From the analysis of discussion below are the awesome recommendations that can use by
the mentioned organization in order to enhance the customer experiences.
Host events at stores respected company has the vast number of customers in their
operational function hence it is necessary to form an emotional bond with the regular
customers. Hence, through posting events at stores could assist the organization in
order to Understand their customer more efficiently as well as it can build more
effective bond with them. In these events the respected company can showcase their
new products for testing. It will help in increasing their sales if customer like their
new product (Gao, and et. al.., 2021).
Enhance e-commerce operations respected company consistently enhancing their
operations in their stores. Moreover the mentioned organization need to enhance
their online services to as the trend is rapidly shifting towards e-commerce. In
addition to this by providing fast delivery services to the customer can assist the
organization to enhance their customer base even more further. It also provides the
competitive advantage to the company by manipulating their customer base towards
their operational function as well as it will also enhance their revenue and sales.
Conclusion
From the analysis of above report it could be said that customer experience are the main
aspect for every company to perform their activities in the operational market. In addition to
this double report clearly stated that the respected company perform various customer
experience strategies in their operations to attract them towards company products and
services. The mentioned company used value proposition canvas which assist them in order
to develop more customer intrinsic practices. In addition to this by the use of 6 pillars model
Company developed the empathy, more personalised experience as well as reduce the
barriers which increase shopping time for the customers. Moreover the mentioned company
used various digital disruptions In their practices such as e-commerce website and
frictionless stores that attracted customers. In addition to this some recommendations were
also deployed according to the above discussions which were hosting events and enhancing
e-commerce platforms.
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REFERENCES
Books and Journals
Roy, S., 2018. Effects of customer experience across service types, customer types and
time. Journal of Services Marketing.
Khan, and et. al.., 2020. Customer experience and commitment in retailing: Does customer
age matter?. Journal of Retailing and Consumer Services, 57, p.102219.
Kuppelwieser, V. G. and Klaus, P., 2021. Measuring customer experience quality: the EXQ
scale revisited. Journal of Business Research, 126, pp.624-633.
Goodman, J., 2019. Strategic customer service: Managing the customer experience to
increase positive word of mouth, build loyalty, and maximize profits. Amacom.
Rather, R. A., 2020. Customer experience and engagement in tourism destinations: the
experiential marketing perspective. Journal of Travel & Tourism Marketing, 37(1),
pp.15-32.
Shi, and et. al.., 2020. Conceptualization of omnichannel customer experience and its impact
on shopping intention: A mixed-method approach. International Journal of
Information Management, 50, pp.325-336.
Batat, W., 2019. Experiential marketing: Consumer behavior, customer experience and the
7Es. Routledge.
Marinchak, C. M., Forrest, E. and Hoanca, B., 2018. Artificial intelligence: Redefining
marketing management and the customer experience. International Journal of E-
Entrepreneurship and Innovation (IJEEI), 8(2), pp.14-24.
Dou, and et. al., 2019. Outcomes of entrepreneurship education in China: A customer
experience management perspective. Journal of Business Research, 103, pp.338-
347.
Gao, and et. al.., 2021. How customer experience incongruence affects omnichannel
customer retention: The moderating role of channel characteristics. Journal of
Retailing and Consumer Services, 60, p.102487.
Bhattacharya, A. and Srivastava, M., 2020. A framework of online customer experience: an
Indian perspective: an Indian perspective. Global Business Review, 21(3), pp.800-
817.
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