Customer Relationship Management
Essay by gameeela • October 15, 2011 • Essay • 351 Words (2 Pages) • 1,703 Views
When customers use the loyalty cards during pay transactions for goods, details of the purchases are stored in a database which enables Tesco to keep track of all the purchases that their customers make.
The card provided Tesco with vital customer information such as:
→ What products they were and were not buying.
→ Where they were spending their time in the store, and where they were not, as measured by spending.
Tesco-a British international grocery and general merchandising retail chain- is the Best Example for having "CRM" system ,as it is the first chain that decided to implement a loyalty program by focusing on the individuals, Its CRM program is certainly one of the best in the world, and all the customers love it.
Tesco realized that all customers are not equal and now it measures valuable customers by the frequency of purchase and value of expenditure.
As a result of Tesco's efforts to delight the customer, and its success of CRM program :
Its profits and market share figures rose greatly over time.
By serving the customer quickly and efficiently, and keeping all information on a customer in one place, a company aims to make cost savings, and also encourage new customers.
Tesco's CRM program is "learning about how consumers shop and what they want from their retailer, not considering CRM as a marketing sales promotion program and not just changing the one-to-one communication with the customer but changing the physical retail offer to satisfy customer's needs and wants".
As a result of Tesco's efforts to delight the customer, and its success of CRM program :
Its profits and market share figures rose greatly over time.
By serving the customer quickly and efficiently, and keeping all information on a customer in one place, a company aims to make cost savings, and also encourage new customers.
Tesco's CRM program is "learning about how consumers shop and what they want from their retailer, not considering CRM as a marketing sales promotion program and not just changing the one-to-one communication with the customer but changing the physical retail offer to satisfy customer's needs and wants".
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