Tesco,Uk

Customer Relationship Management (and Tesco frequent-shopper program in particular ) helped the company to deliver better value to its customers and maintain a competitive edge . There are at least three distinct effects this information system might have had on customer relations First of all , the company was able to collect the information about the preferences and needs of the clients , thus expanding their offerings of popular products and , supposedly , reducing the range of goods that were less relevant to the customers

Secondly , it allowed to company to customize discounts and mailings to

individual clients . This creative approached established certain emotional alignment among the customers with this specific chain Additionally , those personally tailored coupons and discounts generated more sales

Last but not least , this information system helped Tesco to adjust its pricing policies to the financial circumstances of their customers since some products are less price-sensitive and others rely heavily on competitive price

After the implementation of CRM system , Tesco managers are able to access each customer 's shopping history . This information can be used for statistical purposes , as an indicator of the overall success of the company , and in the process of making strategic decisions about the company 's future development . Furthermore , it can be used as vehicle of growth in three aforementioned ways

Such information system can be also very helpful in identifying new products to introduce . For example , most popular offers might need supplementary products . If there is hype around a certain product offering a substitute (alongside with the original product ) is likely to increase sales . Moreover , it can be used to monitor which customers are trying the new product in to identify the price range for new offers ...