This dissertation basically aimed to achieve an understanding of whether the concepts of customer relationship management which are so effective in industries like banking, airlines etc can also be as useful as they are for the said industries. This research therefore focused on the broad categorization of whether CRM has the power to create customer loyalty and if yes can the same concept be imitated for the retail industry.
The Dissertation describes the customer relationship management (CRM) initiatives undertaken by Tesco, the number one retailing company in the United Kingdom (UK), since the mid-1990s. The company's growth and its numerous customer service efforts are discussed. The dissertation then studies the loyalty card scheme launched by the company in 1995. 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. This dissertation 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.
Customer relationship management is not a new concept as many organisations have successfully implemented it to achieve better results. The business model of the Dell suggests that how delivering directly to the customers can create strong customer loyalty and help develop the effective customer relationship management within the organisation.
In its essence, Customer relationship management is considered as an activity through which organisations try to maintain customer retention and try to develop customer loyalty through that. However information technology has played an important role in the development of CRM not only as a concept but also as a practical reality. However traditionally CRM has remained the domain of some typical and particular industries such as banking, airlines, automobiles, hotels as well as electronic commerce. Retail Industry such as large super stores such as Tesco, ASDA etc has not been able to initiate the same level of CRM as it should have been.
As a case study we have chosen Tesco as our reference point for discussing the CRM with specific reference to Tesco.
This study will aim to analyze and understand the role of CRM into retail industry and whether CRM can prove useful in Retail Industry. Accordingly research objectives such as the ability of CRM to create customer loyalty, whether CRM has the ability to create the same for retail industry and to finally evaluate the extent of CRM into current industry.
History of Tesco can be traced back to the second decade of last century when Jack Cohen started to sell grocessories from a stall in London. The business survived and soon it emerged as the leading grocery providers in the country. Tesco is now the largest retail organisation in UK in