Customer Relationship Management and Tesco Case

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As businesses get larger and more complex, Organizations often lose customer focus. Accordingly, the CRM depend on building relationships with valued customers to maximize their long term value and profitability through: •Increasing longevity of customer relationship

Enhancing growth potential of each customer through cross-selling and up-selling •Making low profit or unprofitable customers more profitable or terminating them. •More focus on high value customers.

The CRM conclude the different segments of customers with their different cultures, shopping habits, and reaching them through phone calls or e-mails A typical example for the management of customer relation is the TESCO case and how it handles their customers TESCO big weapon is information about its customer, In 1995 it introduced the Clubcard programs, giving card holders discounts in exchange for their name address and other personal information about their size household, the ages of their children and dietary preferences and today about 80% of its shoppers are Clubcard members. To help analyzing customer data, Tesco turns to consultancy Dunnhumby to run its loyalty- card programs where each product is scored on 50 dimensions such as price and size of the package and the computer looks for customers whose shopping baskets have similar combinations of score. The data let TESCO tailor promotions to individual shoppers and figure out quickly how new initiatives are working. For example, after TESCO introduced Asian herbs cooking oil and other ethnic foods in neighborhoods with many Indian and Pakistanis the data showed the new products were also popular with affluent white customers accordingly the company quickly expanded the rollout. The data driven strategy puts TESCO at the vanguard in retailing as traditional advertising loses effectiveness. What’s more, Tesco also used its knowledge of shoppers to fight Wal-Mart core appeal which is Low Prices of certain products Finally, Customer...
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