Relationship Management In Tesco

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Customer Relationship Management (CRM) is a business strategy that aims to understand, anticipate and manage the needs of an organisation’s current and potential customers and is considered to be one of the most powerful tools in modern marketing strategy.
For the past decade, retail companies are facing more dynamic and intense competition due to increased globalisation and market saturation. Advantages such as the marketing mix are never long lasting and market dynamics are ever changing. As a result, retails companies have to keep their competitive advantage by better managing customer relations in order to survive and thrive.
This study has selected a popular retailer of the United Kingdom, Tesco. The objective of this study is to focus
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Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End. Over the years, their business has grown and according to Tesco (2012), they can be considered as the third largest retailer in the world, after Wal-Mart and Carrefour and occupies more than thirty percent of the United Kingdom retail market.
Tesco positioned itself as a company offering good quality products at extremely competitive prices in an attempt to provide better services to its customers and meeting their needs. Tesco also took a very customer-centric approach as illustrated in its ‘core purpose’ and ‘values’ (Refer to Table
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The need for adopting the right customer approach to improve customer satisfaction was when Tesco realised the importance of getting to know and understanding their customers. Tesco then collaborated with Dunnhumby, a marketing services company and implemented a customer loyalty program known as the ‘Tesco Club Program’, Tesco’s biggest customer initiative and the first focused CRM drive in 1995. The Tesco Club card was designed to focus entirely on the customer and to offer service benefits to the customer in a unique way. This initiative was inspired by the increasing popularity of such schemes in other parts of the world. Customers became members by opting into the program with a joining fee and had to provide personal details such as name, address, date of birth, e-mail, family composition, dietary requirements and personal preferences. Through the Club cards, information on areas like merchandising, pricing, customer services, promotions, customer acquisitions, media effectiveness, customer communications and market research have been generated. Furthermore, over 140,000 educational videos about the program to educate Tesco’s staff were distributed store-wide. These videos explained why the Tesco took up such an initiative, what the company expected to gain out of it, and why it was important for employees to participate whole-heartedly in the programme. Individual

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