Delivering Customer Values
Summary for “Delivering Customer Value Based on Service Process: The Example of Tesco.com”
* Table of Contents 1.0 Introduction 3 2.0 The Ten Key Points in the Study 4 2.1 Customer Switching 4 2.2 Efficient Service Process Leads to Customer Loyalty 4 2.3 Importance of Service Process 5 2.4 Tesco.com’s Service Process 5 2.5 Tesco.com’s Customer Value Delivery 5 2.6 The Four Ps: Product 6 2.7 The Four Ps: Price 6 2.8 The Four Ps: Place 6 2.9 The Four Ps: Promotion 7 2.10 Conclusion 7 References 8
Introduction
This report summarizes and identifies the key points for the article “Delivering Customer Value Based on Service Process: The Example of Tesco.com”. The main
…show more content…
Tesco 's service concept is based on delivering as simply and cheaply as possible as a response to its customers wanting “more for less”. (Ma and Ding, 2010)
2.4 Tesco.com’s Service Process
Tesco is a company that adopts new service processes to improve customer value. Tesco.com’s managers face challenges such as marketing, training, employees’ welfare, development and control, attention to physical surroundings, scheduling workforces, and many more. Tesco.com’s service processes are of two types: front office (direct customer interaction with Tesco’s employees in the shopping process), and back office (indirect customer participation in the process online).
2.5 Tesco.com’s Customer Value Delivery
The study states that customer value and satisfaction is directly related to the benefit that a product or service provides. Tesco regards its customers as the very center of their business, which is why they created a new service process (Tesco.com, 2011) to create value for customers. Therefore, delivering superior service which manages to satisfy the customer can lead to higher customer loyalty and retention, higher market share and lower costs.
2.6 The Four Ps: Product
The study indicates that Tesco’s progression in product offering not only increases their market share but also offers their customers with a wider variety of products to choose from. It also offers its own line,
It is important for Tesco to have motivated employees which can help them succeed and gain awards for the best customer services. Tesco’s employees also need to help the customers and other stakeholders in order for them to return. This could also lead to people buying more shares in the business. The influence is customer satisfaction, stock, whether the customer returns because of Tesco’s quality products and prices or whether their service is good, if they don’t then Tesco’s customer service is not good enough.
Tesco tries to understand customers and be the first to meet their needs by always sending emails to latest new products in store and on their website. Plus deals and discounts on products that suits the customers’ needs.
They want to gain respect and value from their customers, so that they will become loyal to them and recommend Tesco to others as a good store which will improve their reputation and gain them more customers. So by making sure they listen and respond to all their customers’ needs there more likely to achieve this. If they did not treat their customers well and strive to meet their needs they would not have many customers, would not have a good reputation and they would there for not sell a lot and make hardly any money.
In this assignment I am going to produce report which identifying the expectation of client for my chosen organisation which Tesco and I will link the expectation of client to the organisation and the method they use to provide the Services and meeting the needs and expectation of the customers.
Customer service plays a vital role in the running of this organisation. As they have many competitors they try extremely hard to stand out above the rest with their customer service approach. They use the slogan ‘Every little helps’ to
Customer Value is ‘the performance characteristics, features and attributes, and any other aspects of goods and which customers are willing to give up resources’ (Robbins, Bergman, Stagg and Coulter, 2012). This broad definition highlights the fact that there are multiple aspects that contribute to create a sense of value within the customer.
Two different customer service models that most retail and online retail organisations use are the cheap prices and convenience model and the personalized in-depth model. The cheap price model is controlled by management and ensures policies and procedures are in place that can be easily measured and constantly measured. This is the one that we at Flanagan’s use more than the other model. However, the other models the personalized and in depth model is used predominately by our other section of the organisation. This is the hotel and leisure and building maintenance side of the business. This is face to face and allows our agents/advisors to be more personal with them. Good use of
This course focuses on services management in general and service operations in particular. It explores the elements that unite services, that differentiate service processes from non-service processes and that differentiate various types of services from each other. Customers generally participate in the service process, often with direct and uncensored interactions with employees and facilities. The resulting
Within these stores, there are many different departments and groups of job roles including sales floor customer assistants, store operations, section managers and store managers (Careers.marksandspencer.com, 2016). Marks and Spencer are devoted to providing great value and services to their shareholders and customers within their business, which suggests customer service is a key part within their organisation (Corporate.marksandspencer.com, 2016). The strategic direction of Marks and Spencer is to prioritise profitability as well as growing the business, alongside improving performance in all areas of the organisation (Corporate.marksandspencer.com, 2014). This essay will focus on sales floor customer assistant departments within Marks and Spencer.
Tesco can be said to be a global leader in the UK retail business. It is one of the leading world retailers. The company started using the trading name TESCO in the 1920s and since the group has expanded in many ways venturing in different markets and with interest in different sectors. Over the years, Tesco has recorded growth which has been achieved through different strategies. There has been emphasis on the growth of Core UK business in order to expand internationally. This growth has allowed the company to position itself in food and non-food sectors based on retailing services. Over the years, the company has witnessed financial fortunes which have been reflected in its growing sales. Sales have risen from 31,726,280 from 2013 to 32,074,650 in 2014 (Kantar, 2014.) This has been achieved through growth strategies which have seen the company expand its retail outlets and at the same time enter into new markets with high growth potential using their famous ‘every little helps’ branding along the way. The ‘Every little helps’ branding helped Tesco’s attract 1.3 million new customers in the period from 1990-1995, and the campaign achieved good effects on staff morale, attracting quality marketers to join Tesco, directly affected the share price and allowed the brand to move into non-grocery sectors where brand credibility is a key requirement. Disadvantages….limitations etc
In this report, the writer will explain the background of Tesco, purpose, benefit, the shortcomings and the impact on its business by using e-business strategy, as well as the developments in the strategies and business models of online supermarket retailing.
Service firms are increasingly using customer service to develop sustainable competitive advantage – through value generation as well as differentiation. This
Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.
Customer satisfaction and service quality are the two important components that direct anyone’s attention in every concept related to marketing, services, etc. (Spreng and Mackoy, 2006). In today’s competitive era, the success lies in
“Value is the customer’s assessments of the benefits of the service weighted against all the cost involved.” (Johnston and Clark, 2008, pg. 44). In a service organisation, operations determine the balance between minimising organisational cost and maximising customer’s value. The service value of BA includes the following: