Woolworths Report: Customer Service, Timely Delivery, and Loyalty

This report analyzes Woolworths, one of Australia's largest retail companies, examining its performance in the retail sector. The report highlights Woolworths' strengths in providing good customer service, ensuring product safety, and offering timely order delivery, including home delivery services with options like 'Delivery Now'. It also discusses the company's customer loyalty program, which faced criticism due to recent restructuring. The report concludes by emphasizing the importance of customer satisfaction and suggests recommendations for Woolworths to improve customer retention, such as offering additional benefits like free delivery or special combos.

Woolworths

Woolworths
Table of Contents
1.
0About the industry....................................................................................................................1
2.0 Woolworths..........................................................................................................................1
2.1 Woolworths excels at providing good customer service..................................................1
2.2 Woolworths excels in taking timely orders and delivery.................................................2
2.3 One aspect for which Woolworths is criticized for reward customer loyalty program....3
Conclusion and recommendations.............................................................................................3
References..................................................................................................................................4
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Woolworths
1.0 About the industry
Woolworth’s is one of the largest companies in the retail sector. The retail sector in Australia
has achieved growth with the ratio of 3.7% in September 2018 as compared to the other
years. The retail sector in the Australian market has witnessed growth but strong support is
witnessed by the housing sector which is supported by low interest rates with the increase in
the household credit, so it can be said that it has affected the consumer spending pattern. The
future of the Australian retail sector relates with the disruptive forces such as customer
spending pattern and also the influx of the foreign organizations that emphasizes on
formulating the new approaches in the retail sector (Parkinson, 2018).
Presently, the retail sector is facing disruption and also the foreign organizations has changed
the overall retail landscape with the preferences of the customers. The effect on customer
preference is because of the advancements in the technology. By considering the present
situation, the Australian retail sector needs agility and multiplicity of delivery platforms
which can easily search non responsive retailers present in the market. In the retail sector,
there are competitors that are present in the Australian market. The competitors are MetCash
limited, Big W, Wesfarmers and Kmart Australia Limited. So, presently the scenario of retail
sector is changed and the major reason is concerned with the competitors who are present in
the market (Parkinson, 2018).
2.0 Woolworths
2.1 Woolworths excels at providing good customer service
The company emphasizes on offering the valued customers with safe and quality products.
They give priority to their customers and keep them informed about the problems in relation
to the products resulting in withdrawals or recalls. In reference to product safety
requirements, the company take the compliance with the product safety requirements of
Australian consumer law. At the time of offering their brand products, the company ensures
that the products they supply comply with the product safety standards and also they consider
Australian consumer law requirements. Woolworths also provide product safety policy in
which they consider the process of factory auditing, product testing and inspections (Keith,
2012).
If customers face any issue in relation to product quality then they have the choice to report
their problems to support executives and also online enquiry form is available which
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enhances the satisfaction level of the customers towards products and services of the
company. The company always provide latest updates to the client through its official website
and also Scam alerts is one of the best policies which is used by the company. Woolworths
has posted a brief explanation about the scams that can take place and they have kept their
customers aware that they never ask for the personal details of the customers (Woolworths,
2019c). It is analysed that company also emphasizes on “Destination Zero” approach which
simply means that zero harm to the people, environment and also the communities. To
maintain trust among the customers, the company focuses on certain principles that assist in
accomplishing the set goals. There are principles considered by the company like Buying and
selling in a responsible manner, sourcing in a sustainable and ethically way and also to
deliver the value and choice to the customers.
Woolworths is also committed to consider the human rights as it boost satisfaction level of
the customers towards work. The company is signatory in reference to United Nations Global
that showcase the commitment to the values of human rights and also to labour standards of
the organization.
2.2 Woolworths excels in taking timely orders and delivery
The company excels in taking timely orders and delivery that has helped the company to
attain the large market share. The company has provided the facility of home delivery of the
products. The company provide high quality groceries at the door steps of the customers.
Woolworths deliver 7 days a week nationwide and also the customers have the chance to
track the order within 1 hour. If customers give order of any product, the company ensures
that it will be delivered in next 1 hour (Woolworths, 2019a).
Delivery now is also the special facility in which the estimated delivery of the product is 2
hours and the customers can track their products through live map. At the time of shopping,
the customers have the choice to select from 12,000 items handpicked from the local store in
the area (Coles, 2019a).
In 2018, the company has been rewarded as the “Canstar blue award”. This reward was given
for “customer satisfaction for online groceries”. Woolworths was also rewarded as the best
“online grocery service store”. These rewards are given to the company on the basis of
overall satisfaction, pick up reliability and also value for money (Woolworths, 2019b). So, in
this way the company excels in offering products at their door step at the right time.
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2.3 One aspect the company is criticised for
It is noticed that the company has been criticized by the people for the new scheme
introduced by the company in relation to reward customer loyalty program. In this the
company has took the decision to restructure the customer loyalty program that will offer
benefits to the shoppers but the customer has emphasized more on social backlash. In the new
scheme introduced by the company, the shoppers can earn “Woolworths dollar” at the time of
purchasing the products from store and it can be only done when they will buy any “orange
ticket products” across the categories of the products (CMO, 2019).
They said that when the Woolworth’s dollar will reach $10 then only the amount can be used
by the customers at the next shopping. The decision which was taken also saves the company
expenditure up to $80 Million a year. The Australian consumer retail and service research
unit has said that the present loyalty members of the company will use double value by
considering revitalised program. The shopper can spend $108 per week and can only earn
$10 in the seven weeks of the shopping. So, these figures have not stopped the cardholders to
take this issue to the social media platform for criticism (Methner, Hamann and Nilsson,
2015). So, by this it can be said that this has negatively affected the image of the company in
the market.
Conclusion and recommendations
It is concluded that Woolworth’s is one of the largest giant in the retail sector and there are
different aspects that helped the company to compete with the competitors present in the
market. The first aspect is concerned with the customer service provided to the customers.
The next in which the company excels is related to timely delivery of the products.
Woolworths has provided a platform through which the customers can purchase products
online by sitting at their home. The last aspect for which the company is criticized relates
with reward customer loyalty program. It is examined that with the change in the reward and
loyalty points there are many customers who are not satisfied and they criticize the company.
So, it is important for company to provide additional benefits to the customers such as free
delivery or any other combos, as it assist to retain customers towards the organizational
products and services.
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References
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CMO., 2019. Woolworths faces criticism after dropping frequent flyer points in new-look
loyalty program. [Online]. Available
at: https://www.cmo.com.au/article/587570/woolworths-faces-criticism-after-dropping-
frequent-flyer-points-new-look-loyalty-program/ [Accessed on 13 September 2019].
CMO., 2019. Woolworths faces criticism after dropping frequent flyer points in new-look
loyalty program. [Online]. Available
at: https://www.cmo.com.au/article/587570/woolworths-faces-criticism-after-dropping-
frequent-flyer-points-new-look-loyalty-program/ [Accessed on 13 September 2019].
Keith, S., 2012. Coles, Woolworths and the local. Locale: The Australasian-Pacific Journal
of Regional Food Studies, 2, pp.47-81.
Methner, N., Hamann, R. and Nilsson, W., 2015. The evolution of a sustainability leader: The
development of strategic and boundary spanning organizational innovation capabilities in
Woolworths. In The Business of Social and Environmental Innovation (pp. 87-104). Springer,
Cham.
Parkinson, M.M., 2018. Case Study 4: Woolworths Group plc. In Corporate Governance in
Transition (pp. 203-221). Palgrave Macmillan, Cham.
Woolworths., 2019a. Online delivery. [Online] Alphabet. Available
at: https://www.woolworths.com.au/shop/discover/shopping-online/delivery [Accessed on 13
September 2019].
Woolworths., 2019b. Shop. [Online] Alphabet. Available
at: https://www.woolworths.com.au/shop/discover/shopping-online [Accessed on 13
September 2019].
Woolworths., 2019c. Scam. [Online] Alphabet. Available
at: https://www.woolworths.com.au/shop/discover/about-us/scam-alert [Accessed on 13
September 2019].
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