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Customer relationship management is all about development of healthy relationship with target market so that business can easily accomplish its desired aims and objectives. Further, main objective of every organization is to satisfy need of its target market in efficient manner and due to this reason development of relationship with them is quite important. It is the duty of internal staff members of company to take corrective actions for effective CRM and through this all the external stakeholders can be satisfied easily and in appropriate manner. Moreover, to retain large number of customers loyalty schemes are being introduced with the help of which it becomes easy for enterprise to strengthen its customer base. For conducting the present study organization chosen is Tesco which operates in retail sector and well known in the market for range of products it offers to its target market. The report focuses on CRM strategies of the business and large number of tasks has been covered which involves role of external stakeholders in achieving effective CRM, how information gained informs marketing etc.
Customer relationship management is all about maintaining healthy relationship with target market so as to accomplish main goals and objectives of the organization. Further, one of the main aspects of CRM is to acquire and retain customers where it has become possible for Tesco to understand the need and requirement of target market and initiatives are taken by business to grab large number of customers. Moreover, due to rise in level of competition many businesses are not able to develop healthy relationship with its target market and this sometime leads to decline in overall efficiency of the organization. The second major aspect of CRM is that it supports in recognizing and distinguishing needs of different customers and products can be offered to them on the basis of requirement. This feature of CRM is regarded to be most significant where business can easily focus on satisfying need of large number of individuals. Apart from this, it becomes easy for Tesco to develop its product range as per request of customers in the market. CRM totally focuses on requirement of workforce where products along with services are delivered to the customers as per their expectations which direct leads to favorable results for organization along with company. So, these are some of the key aspects of CRM which needs to be considered by business for its smooth functioning in the market.
Large numbers of benefits are present which Tesco obtains by undertaking the approach of CRM and in turn it acts as development tool for the business. One of the main advantages of CRM is that it assists organization in grabbing large number of customers as products are offered to them as per their expectations and this leads to rise in level of satisfaction. Apart from this, another benefit of this approach is that it supports in enhancing market share along with profitability level of the company which is generally one of the main motive of organization behind carrying out operations in the market. Apart from this, concept of CRM allows Tesco in understanding need and requirement of target market due to which customers are served in appropriate manner and this in turn allows Tesco to serve customers in better manner. Another main benefit of CRM is that it enhances customer satisfaction where business tries to build healthy relationship with the target market on continuous basis. On the other hand, customer relationship management supports Tesco in improving the level of customer service where remarkable service can be rendered to the target market as per their expectations and in turn it acts as development tool for enterprise. This is also one of the main benefits of customer relationship management which Tesco is able to obtain.
Quality systems have direct impact on CRM as through this Tesco can efficiently satisfy requirement of its target market. Further, it is well known fact that before purchasing any type of product or service it is ensured by business that it is of acceptable quality and due to this reason quality systems have positive influence on CRM. Enhancing quality is considered as one of the main concern for every company and due to this reason enhance the quality level can lead to favorable results. In case if business totally focuses on quality improvement tools then it directly becomes easy to maintain healthy relationship with target market and in turn organization can gain competitive advantage easily. On the other hand, it is well known fact that before purchasing any commodity customers ensures that quality level of the product is up to the mark so that they can be easily influenced to buy the commodity. Due to this, basic reason it is necessary for Tesco to undertake quality system so that business can build healthier relationship with target market and in turn it can allow in gaining competitive advantage. Without undertaking quality systems it is not at all possible to focus on satisfying customers needs and it can lead to decline in overall performance of business in the market.
For effective CRM different type of processes are being needed which supports business in building better relationship with target market and allows in gaining competitive advantage also. Firstly to have effective CRM it is necessary for organization to design simple tool so that it can be used by each and every individual within the workplace. Moreover, every employee must have proper knowledge in relation with CRM so that favorable results can be accomplished easily at the time of using this strategy. In order to have effective CRM it is required to follow 5 key steps which are as follows:
Collecting and storing data
It is the first stage where Tesco is required to store important and relevant information linked with its customers.
Building a communication timeline
it is the next stage where company has to identify the best frequency for communicating with new customers. This involves sharing of crucial information.
Analyzing sales data
In this stage business has to analyze its most profitable customers and more effective ways must be identified in order to contact them.
Making the data accessible
Sales person of the business is required to know status of orders, issues along with payments.
It is the last stage where organization can use the past history that has been collected in the database of CRM.
Staff members working within Tesco plays most crucial role in accomplishing effective CRM where the knowledge along with skills present within them supports business in building stronger relationship with the target market. Further, it is well known fact that every individual has some sort of good knowledge which can be applied in understanding need and requirement of target market. In short, staff members working within the organization plays most crucial role in effective CRM where they apply large number of strategies so as to target customers in proper manner. Internal staff members directly deal with customers on daily basis and due to this reason they know the effective ways through which CRM can be developed easily and in turn Tesco can gain competitive advantage with the help of same. By applying different type of knowledge and skills Tesco can build healthier relationship with its customers and this leads to favorable results for business such as enhanced market performance, rise in market share etc. Apart from this, they can guide business on various areas especially where organization is under-performing and needs improvement. Employees can assist in development of more effective CRM strategies which are fruitful for the business in every possible manner. Therefore, with the help of this it can be stated that internal staff of the company plays most important role in achieving effective CRM.
External stakeholders are various parties associated with the business and they are influenced by the type of decisions being taken by business. Stakeholders such as customers, government, banks can assist company in effective CRM. For instance if Tesco takes feedback from its customers on continuous basis then same can be considered in development of products and provides them a base in serving customers. Apart from this, their role is crucial as in case if their feedback is not considered then it is not possible for management to develop healthier relation with target market. Through effective feedback system organization can easily know need and requirement of target market and same acts as development tool for the enterprise. Due to this reason role of customers as external stakeholder is crucial especially in achieving effective CRM. Business has to comply with the need of the target market and it has to be ensured that organization is meeting with their needs in efficient manner. Apart from this, government is another key stakeholder which provides different type of information to company on various aspects. So, such data is also beneficial for organization for effective CRM. Through this, it is possible to serve customers in better manner.
In order to retain large number of customers businesses have started to introduce loyalty schemes with the help of which it becomes easy to enhance satisfaction level of the customers and enhances organizational productivity. Further, Tesco’s loyalty scheme named clubcard is quite effective where the holder of the car receive one point for every £1 they spend. Holders can also receive extra points on special offers and they receive one Green clubcard point for every carrier bag they re-use. This loyalty scheme of Tesco directly provides additional benefit to customers of enterprise where they prefer to purchase more products of Tesco on continuous basis. Apart from this, when any clubcard is being issued to new customers then personal information along with purchase of products is taken by company. This is one of the most effective source being undertaken by Tesco in order to satisfy need and requirement of target market. Apart from this, the additional points being obtained by the customers can be converted into cash or can be redeemed. The options being provided to the customers are based on their convenience and in turn enhance satisfaction level. This loyalty information has supported Tesco in obtaining information regarding purchase behavior of target market and on the basis of same organization is able to meet with the changing need of customers. So, with the help of this it can be stated that loyalty scheme of Tesco is quite effective and has supported organization to serve its customers in better manner.
Information obtained by Tesco with the help of loyalty scheme supports in informing marketing along with customer service policy. On the basis of customer information marketing strategies are being developed by business and in turn company can easily target its customers in efficient manner. In short, business can easily determine the ways of promoting products in front of target market. Further, customer service policy is also developed by obtaining information in relation with customers. In case if organization knows that customers prefer more online shopping then with the help of customer service policy online tools are promoted so that target market can indulge into online practices rather than offline one. Data gathered linked with customers supports in development of marketing along with customer service policy which is effective enough in enhancing organizational performance. Apart from this, it strengthens customer base of the organization and brings favorable results such as rise in market share along with profitability level. Different type of marketing tools are being present but it is not necessary that they may influence purchase decision of customers. Therefore, the information gained about customers supports in informing marketing along with the customer service policy of business.
CRM within Tesco plays most crucial role as through this Tesco is able to understand need and requirement of its target market. Further, it has lead to accomplishment of desired objectives along with favorable outcomes. Each and every product is offered by Tesco as per customers need and modification is done on continuous basis so that satisfaction level of target market can be enhanced easily. Apart from this, for building relationship with target market feedback is taken from them and on the basis of same possible changes are made in the product range. Overall the CRM strategies employed by Tesco are quite effective and this is one of the main reason behind strong customer base of the enterprise. Through loyalty scheme such as clubcard company is providing monetary benefits to its target market along with remarkable experience in the field of retail. Moreover, through effective feedback system business ensures whether satisfaction level of target market is up to the mark or not. It has enhanced satisfaction level of the customers and due to this reason they prefer to purchase products of Tesco rather than other companies in the market. In short, CRM strategies have developed internal strength of company along with the ability of meet challenges being present in the business environment. So, this can be easily regarded as one of the main reason behind success of Tesco in the market where it operates.
The overall process of CRM employed by Tesco is effective but some improvement is needed so that organization can easily strengthen its customer base. Further, improvement is required in development of new loyalty scheme as till present company totally depends on clubcard scheme and due to this reason introduction of some other scheme is must. Organization is required to focus on other type of offers such as providing discount on the offers so that large number of customers can be attracted easily. Apart from this, online feedback system can be introduced where feedback in relation with products and services can be taken from the target market. It can directly assist organization in knowing whether needs of customers are satisfied efficiently or not. Moreover, business can strengthen its customer base and in turn it will become possible to deal with the challenge of rising competition in the market. Apart from this, time to time point system in the clubcard system needs to be modified so that customers can obtain more benefits with the help of this. All these improvements can surely bring favorable results for Tesco where customer satisfaction can be enhanced easily along with market share and profitability level. By considering the feedback from all the customers possible areas can be identified where company is lacking behind and through improvement loyal customers can be retained easily for longer period of time.
Staff members working in Tesco plays most crucial role in promoting good customer relationship where they deal with large number of customers on daily basis. Further, it is well known fact that large number of individuals are working within Tesco and they are assigned duty to develop healthy relationship with customers. Employees within Tesco can support business in developing more effective CRM strategies and with the help of this need of target market can be satisfied in appropriate manner. Apart from this, business can deliver training to its workforce in relation with offering good customer service through which retaining customers can become easy for organization. All these improvements can surely bring favorable results for Tesco where business enterprise can easily focus on its desired goals and objectives. Apart from this, some motivational tools can be employed by company with the help of which employees can be encouraged to take part in major affairs of the organization which is also beneficial for enterprise. In short, employees play most important role in promoting good customer relationship where they can assist in enhancing satisfaction level of target market by offering them right product as per their satisfaction level. So, all these improvements are highly beneficial for Tesco in the competitive market where company operates.
In order to implement all these improvements in appropriate manner it is necessary to have appropriate plan so that it can benefit Tesco in every possible manner. In case if business wants to implement online feedback system then plan has to be prepared for the same. First organization is required to gather information regarding tools to develop online system. After the same training has to be delivered to staff members so that they can easily work on the system. Business has to build environment of change within the workplace. Overall cost has to be identified which has to be incurred in the implementation of online system along with the benefits which can be delivered with the help of this system. So, this is one of the main plan which Tesco is required to follow at the time of implementing improvement and this can assist in maintaining better relationship with the target market where overall needs can be satisfied in efficient manner. Apart from this, management has to ensure that every employee takes active participation in the implementation process.
The entire study being carried out has supported in knowing about the importance of customer relationship management. Company like Tesco operates on wider basis due to which effective loyalty schemes have been introduced by business with the motive to grab large number of customers. Apart from this, staff members working within Tesco plays most crucial role in promoting good customer relationship and this is one of the main reason behind success of company in the market. All the employees are contributing in satisfying need of target market and in turn it has acted as development tool for enterprise. Apart from this, CRM strategy has allowed Tesco in gaining competitive advantage.
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