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Customer relationship management (CRM) in Tesco

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❶In conjunction with deploying new technology and initiating information engineering and knowledge management, no project of this scope should be launched if its does not address re-engineering processes across the service delivery model and the enablement and optimization of the people and the leadership that oversee it. Customer loyalty, however, is more to do with how customers feel about the firm whether they trust the firm, whether they actively want to do business with the firm and whether they will recommend the firm to others.

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It investigates the usage of e-business in CRM. The various obstacles that arise as a result of lack of CRM practices have been discussed. The ways in which CRM practices increases the sales and profit margin of Tesco has been discussed.

The researcher has been able to arrive at the conclusion by conducting a survey involving the customers, employees and manager and quantitative analysis of the response. Customer relationship management is one of the key factor via which the organization can successfully enforce its strategies and ensure the loyalty of the customers and increase the retention so that the sale of the company can increase and there will be considerable increase in the repeat purchase.

Tesco is the leading retail sector in UK. It is important for Tesco to have a CRM program in their organization to increase the sale and increase the repeat purchase amidst the tough competition from other retail giants Jones and Saundry, ; Tesco. Tesco is the leading retail organization in UK. It receives tough competition from other retail organizations like Sainsbury and Aldi.

Thus in order to retain and increase the market share it is important for Tesco to ensure that the customers are satisfied with the product and service of Tesco Smith and Marsden, Thus in the present scenario of tough competition, CRM becomes mandatory.

The retail industry is the largest private industry in the world. It is one of the largest sectors in UK. Customer relationship management is an emerging tool that helps the managers to maintain their presence in the dynamic environment Anderson and Kerr, The retail companies are targeting the consumers across various segments which vary among the low, middle and the high income earners.

Thus it is important to practice CRM in the retail organization to retain the share of the market Verhoef, This will help the organization analyze the choice and preference of the customers Payne and Frow, Tesco is a leading retail chain in UK.

It receives tremendous threat from other retail giants Sainsbury, Aldi etc. Thus in this context it is important to analyze the CRM practices of Tesco. The theoretical aspects behind the role of CRM implementation of Tesco will be identified.

CRM is the tool via which the company maintains the relationship with the customers. The CRM is done via the information system Winer, The information system will store the major information of the customers like the details, preferences and processing of the sales order and automation of the sales force. According to Finnegan and Willcocks , the process of managing the customers is large for an organization like Tesco, thus it is important for the organization to develop CRM in order to integrate the vast field and bring it to a single platform Azad and Ahmadi, Customer Relationship Management — Recent Trends.

Retailers depend on the application of the policy frameworks related to CRM for ensuring the success of the organization Buttler, The CRM activities tend to strengthen the existing position and generate the demand in order to exploit the market opportunities.

The investment of the companies in customer relationship management has increased significantly over the recent years Raab, Goddard, Gargeya and Ajami, Retail companies realize that the customer satisfaction is a way of generation of revenue. These are pre-requisite for the success of the organization Coltman, Organizations aim at reducing the operational cost of the organization so that they can maximize their profitability through the solidification of the customer loyalty Frow and Payne, The loyalty schemes provide rewards to the customers Minazzi, n.

They are offered discounts and other benefits on purchase. These schemes increase the engagement of the customers with the organization Knox and Denison, Since there is competitiveness of price in the grocery segment in UK the perception of the customers can be known by offering them with the loyalty cards. It will increase the association of the customers with the organization Smith, Sparks, Hart and Tzokas, E-Business has been used by the large retail organizations and other large organizations to streamline their business process which will increase the productivity and the efficiency Zhu and Kraemer, The communication with the customers, vendors and partners are maintained by using internet Hammervoll, Internet is being used largely on a commercial basis.

MIS is used by the retail organizations in order to simplify their process of working. Online transaction makes the process of working in the organization simpler and the customers can buy a product with minimum standing time Warrington, Abgrab and Caldwell, The research methodology will design the structure of the research.

It is the way by which the researcher defines the problem of the research, approach of the research and designs the overall structure of the research for the purpose of data collection. According to Saunders et al , it is the systemic collection and interpretation of the information so that the clear purpose of the research can be achieved Kothari, The research is mostly based on primary data. In the present research the researcher has chosen the philosophy of positivism, deductive approach, design of the research is descriptive in nature and the researcher has used primary data collection procedure Berg, In the present research, the researcher has used quantitative method for analyzing the data 'Essentials of research design and methodology', Ethical issues has to be considered in order to proceed with the research is a systematic manner.

The researcher has followed the ethical guidelines in order to proceed with the research. The data has been used by the researcher for commercial purpose only. The valuable information gathered from the research has been kept confidential. The researcher has used appropriate style of referencing in the present research. The study of the research identifies the role of customer relationship management in Tesco UK. The benefits of CRM practices for the success of the organization have been identified.

The process of data collection has been primary and secondary in nature. But the researcher has emphasized on the primary data collection process in the present research. The research topic is based on the role of customer relationship management in Tesco. The customers will be able to best describe the role of CRM in their repeat purchase. For this purpose primary data has been collected. The primary data has been collected directly from the respondents which will make the research more valid and reliable Jha, The primary data has been collected by means of sampling.

For this purpose it was crucial to select the appropriate candidates for the survey. The researcher has used non probability method of sampling for this purpose. The company's growth and its numerous customer service efforts are discussed. The case then studies the loyalty card scheme launched by the company in It examines how the data generated through this scheme was used to modify the company's marketing strategies and explores the role played by the scheme in making Tesco the market leader.

The case also takes a look at the various other ways in which Tesco tried to offer its customers the best possible service. Finally, the company's future prospects are commented on in light of changing market dynamics, the company's new strategic game plan, and criticism of loyalty card schemes. The case is structured to enable students to: UK , Retailing , Mids to , Large.

It reduces the marketing costs of doing business since existing customers are relative easy to hold whereas getting and retaining new ones is more difficult.

The loyalty of existing customers represents a substantial entry barrier to would-be competitors. Excessive resources are required when entering a market in which existing customers must be cajoled away from an established brand with which they are well satisfied. The profit potential for the tentative entrant is thus reduced. Furthermore, competition is strong and the costs of getting new customers are high.

Customers that have been with a company for some length of time tend, on average, to spend more on each transaction, offer more opportunities for selling them other products and services and give better recommendations to their friends and colleagues than other customers. Customer loyalty is considered to be an important driver of success and increased profitability. However, customer loyalty and customer retention need to be distinguished from one another.

Customer retention reflects only repeat purchase behaviour. Customer loyalty, however, is more to do with how customers feel about the firm whether they trust the firm, whether they actively want to do business with the firm and whether they will recommend the firm to others. Customer loyalty is closely related to customer satisfaction.

While retention can be obtained through discounts for repeat purchase and so on, getting high customer loyalty requires greater long-term investment. It involves emphasis on achieving excellent in the service activities that augment the basic product offering.

In , an agreement was signed by Tesco to set up a premeditated series of joint ventures for the development of shopping malls in China. This joint venture included three malls: Anshan, Fushan and Qinhuangdao Tesco, Furthermore, there have been promotion of free trading blocs by governments to benefit from globalisation Lynch, This has provided Tesco with a platform to expand its retail network across the EU.

Economic Economic factors are a matter of concern for Tesco since they impact directly on the buying behaviour of customers. As a result of this, the spending power of consumers is again on a steady rise as they are more confident about their current financial situation. However, there is still a lot of financial uncertainty meaning that consumers are likely to spend less on premium products, encompassing organics and ready prepared meals, which will adversely affect both sales value and margins Keynote, However, the positive aspect of recession is that the customers eat out less and eat more at home which provides opportunities for grocery retailers like Tesco to increase their output Guardian, It must be noted that food is the last thing that customers will cut back on.

The percentage of overall consumer spending on food has risen considerably over the years, as shown below Euromonitor, The ageing population is discouraging for the food retailers older people tend to eat less. They are less likely to travel to supermarkets to shop compared with the younger generation. Although, internet literacy level drops over the age of 65 years within the population Turban et al.

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The case describes the customer relationship management (CRM) initiatives undertaken by Tesco, the number one retailing company in the United Kingdom (UK), since the mids. The company's growth and its numerous customer .

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ABSTRACT This study explored the customer relationship management of Tesco. Tesco is the leading retailer in UK. It manages over a thousand supermarkets, hypermarkets, and convenience stores in the United .

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To achieve the objective of building a continuous relationship with the customers, Tesco is using a strategy of multi-channel client management. This refers to a design, coordination, deployment, as well as assessment of channels so as to improve the value of customers by means of appropriate customer gaining, maintenance, as well as . The case describes the customer relationship management (CRM) initiatives undertaken by Tesco, the number one retailing company in the United Kingdom (UK), since the mids. The company's growth and its numerous customer service efforts are discussed. The case then studies the loyalty card scheme launched by the .

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The case describes the customer relationship management (CRM) initiatives undertaken by Tesco, the number one retailing company in the United Kingdom (UK), since the mids. The companys growth. and Customer Relationship Management Today's Agenda Tesco's Overview Current Marketing Issue CRM in Context of Tesco's Issue Tesco's Current CRM Strategy.