Attract New Customers
Marks & Spencer have lost a number of customers over the last 3-4 years. This means that it is vital to have an objective to attract new customers. Whilst the sales are important it is also important to measure their success by the number of customers they attract. Marks & Spencer want each customer to have a pleasant experience to shop in. They want each customer to leave with a smile. This means that each customer that leaves happy with Marks
& Spencer service will likely tell others about their experience. This will attract more customers for Marks & Spencer.
To attract more customers Marks & Spencer have launched new products and aimed them at customers who do not usually shop in Marks & Spencer:
The Enhance range was developed to appeal to both existing Classics customers and to attract new customers, who are most likely to be in the 35/40+ age group. The collection contains over 70% of the favourite shades from the Classics range while new technical developments have moved our products to a new level of quality and performance.
Marks & Spencer is changing the way its stores operate by increasing the number of employees directly serving customers by 4,000 over the next year. This will come from re-focusing 3,000 existing roles to customer-facing activities and the recruitment of 1,000 additional employees. This will attract new customers, as there will be more customers to receive a pleasant experience.
Enhance Organisations Image
To enhance Marks & Spencer’s image they need to ensure each store looks the same and carries the same company logo. This means that Marks & Spencer would be recognised all over the world however if a customer has a bad experience in one store they will poor image on Marks & Spencer’s as a whole.
Aim high. Marks & Spencer is the UK's leading employer for retail graduates, so if you're looking for the opportunity to fulfil your Sandwich degree with a business placement then why not start at the top.
They remain the country's leading clothing retailer, attracting millions of customers every week to 300 stores in the best locations. They are also getting bigger all the time in home furnishings, gifts, beauty and financial services.
In fact, they have a leading share in the fastest growing food categories and their food development capabilities are unrivalled. There's never been a better time to make their mark.
2(b) Explain how different members of staff contribute to good customer care in each organisation.
Workplace impacts are those associated with Marks & Spencer employing over 60,000 people in the UK. Their aim is to provide 'A Great Place to Work', because they will:
- ...Be clear about how they each make a difference
- ...Build their strengths and develop their skills
- ...Respect the balance between life and work
- ...Recognise and respect a job well done
- ...Be rewarded for superior results
Customer Service Information Employees
The staff help customers regarding products and services offered in a friendly and helpful manner. The staff are well trained so that they have good product knowledge. This means that they are less likely to give out false information about the company.
Sales Staff
These are the members of staff who are working on the shop floor, either filling shelves or ensuring the store is tidy. This is essential when helping to contribute with good customer service.
The staff continually tidy up rails/shelves as if a Marks & Spencer customer comes in they will expect to find all the sizes and products on the same rail/shelf. This will also keep the stock replenished.
The sales staffs also give advice, and are also pleasant, friendly and helpful.
Managers
Where shop floor staff cannot resolve a situation it is up to the section manager to try and sort the problem out. These managers will try to ensure the customers receive what they want and will always be helpful to customers. They may also take customer details and get back to them.
What makes a good Section Manager?
To be a good Section Manager people skills are essential. Whoever you come into contact with; whether customers, suppliers or members of staff, an understanding of situations and the ability to interact in a calm, confident manner are vitally important.
Selling and Stock Section Manager
Leading a team of Sales Advisers, our Selling and Stock Managers focus on a section of the store. You will begin by creating a pleasing layout for your section, making sure all goods are displayed in an attractive and practical way. At the same time, you will see to it that customers enjoy exceptional service and assistance with their purchases. Increased sales will be a measure of your success, and you will relish the challenge of regularly surpassing your targets.
Till Staff
These are usually the last contact customers have of the store and Marks & Spencer try to ensure that it is a pleasant experience. In the Belfast store additional checkout tills have been installed to speed up their service times. If an item is replaced at the till then another member of staff would replace it for the customer. At busy times they tend to pack the customers bags.
Service and Tilling Section Manager
Good service is one of the hallmarks of Marks & Spencer. As a Service and Tilling Section Manager you will lead and develop a team of Tilling Advisers. You will be responsible for motivating and inspiring your team of Advisers, as well as ensuring that customers receive excellent levels of service at every point of contact within the store in order to provide them with a positive experience to which they will return.
Visual Merchandising Manager
Our Visual Merchandising Managers take the lead in giving each of our stores that distinctive Marks & Spencer feel. Although every store is unique in its own way, you will rise to the challenge of making sure each has a consistent corporate look. You will lead and motivate a team of Advisers to deliver exceptional standards of visual merchandising. You will work closely with Store Managers giving creative advice that will help shape the store layout and generate an attractive ambience for our customers to shop in.
Security Staff
Generally the security staff are the first contact for customers of Marks & Spencer.
Security Staff give the customer a feeling of safety and security. They do not just stand at the entrances or exits. They move around the store. They also have distinctive uniforms. These are an addition to the plain clothes detectives who move unnoticed around the store. Security staff can also give advice to customers on their way around the store.
Café Staff
The staff at the Revive Café at Marks & Spencers are called a Barista.
So what does a barista do on a typical day? Early morning, they will set up the coffee machines, check the grind, weight and feel of the coffee, and make a sample cup or two to test the aroma, flavour and crema - the head of the coffee produced by the coffee oils. If the grind is too fine the coffee will taste bitter, if it's too coarse it will taste weak. Even the atmosphere outside can affect the taste.'
To become a barista, you need to be a people's person who can interact well with customers. You need to be enthusiastic, bright and friendly first, then they can teach you all you need to know about the coffee.' All baristas undergo a comprehensive training programme, using traditional Italian coffee machines. There's no age limit on employees - everyone from 16 to 60 is welcome, and Café Revive have even had non-coffee drinkers on the staff, most of who have been converted to coffee addicts.
At Café Revive they pride themselves in offering you a range of superb speciality coffees, using exclusive blends developed by their expert roasters. They are able to accommodate all of your personal preferences at Café Revive, whether you want flavoured syrup, an indulgent whipped cream topping or a large coffee to help you through your day!
Retail Operations
What makes a good Section Manager?
To be a good Section Manager people skills are essential. Whoever you come into contact with; whether customers, suppliers or members of staff, an understanding of situations and the ability to interact in a calm, confident manner are vitally important.
Store Services Manager
Marks & Spencer Store Services Managers are based either in our main store or in one of our regional stores. This is a diverse role and your challenge will be to make sure everything runs smoothly and efficiently from an operational point of view. Overseeing a team of Store Services Advisers, you will be responsible for cost control, deliveries, equipment and cash management on the sales floor. You will develop efficient systems and operational procedures that are designed to allow our stores to perform to their very best at all times whilst keeping abreast of all Health and Safety issues.
Staff Services Manager
Based in either their main store or one of their regional stores, their Staff Services Manager heads up a dedicated group of Staff Services Advisers. They will take initiatives to ensure high standards throughout the staff quarters area, while monitoring effective cost control and compliance with Health and Safety requirements. They will have a flair and passion for creating stylish layouts in the staff catering area and enjoy motivating their team to deliver the first class Staff Services Operations that their people have come to expect.
Accounting Centre Manager
Marks & Spencer Accounting Centre Managers play a key role at the heart of their organisation. Directing a team of Accounting Centre Advisers across a number of stores they will make sure that all cash and stock information is accurate and balanced. An eye for detail will be vital as they prepare and present data for financial accounting, making sure information flows securely and reliably throughout the Company. With the personality to work closely with colleagues, they must enjoy working under pressure and meeting deadlines.
Human Resources
What makes a good Section Manager?
To be a good Section Manager people skills are essential. Whoever you come into contact with; whether customers, suppliers or members of staff, an understanding of situations and the ability to interact in a calm, confident manner are vitally important.
Human Resource Management in Stores
As a pivotal part of store management you’ll work in partnership with the Commercial teams to increase the capabilities of their people and achieve results through flexible and innovative solutions. Their biggest asset is, and always has been, their people and they will ensure that the environment they work in is a positive one that embraces change, whilst remaining customer focused.
The Human Resource team is responsible for the implementation of a complete Performance Management Framework and cutting edge training packages to provide long lasting and measurable benefits. In addition they will deliver professional recruitment practices and processes alongside focused quality support to their colleagues. They will also facilitate the application of the Company’s Human Resource Policies. As a specialist in their field, working as part of the larger Human Resource team they will provide solutions that will enable their people to meet the challenges created by an ever changing retail environment.
Reporting to the Head of Human Resources, they will get real satisfaction from seeing that these accountabilities are met and that they work towards achieving the Company’s business goals.
Section managers – job overview
These are the types of activities that they would be doing on a regular basis.
What is the purpose of the job?
To manage a team of motivated advisers who deliver results and provide exceptional levels of service to the customer base.
What do you have to achieve?
- Satisfied customers.
- Motivated advisers.
- Meet targets.
- Manage costs.
-
Compliance with company and legal requirements.
What is the scope of the job?
- Team size could range from 5 to 50 people, dependent on role and store.
- 4 reporting levels between you and Board level.
What do they have to do?
- Encourage feedback from customers; analyse this information; recommend and implement service improvements.
- Ensure your team are aware of current products, promotions or services that may benefit your customer.
- Work with advisers to identify service improvements.
- Act as a specialist expert when advisers are unable to solve problems.
- Determine and manage the staffing requirements of your section.
- Agree and review individual targets and objectives with advisers.
- Keep advisers informed of company and store developments.
- Plan and agree daily activities with team.
- Involve the whole team in decision-making.
- Identify training needs and capability gaps within your team. Work with the Human Resource team to develop solutions.
- Give regular feedback to advisers on their performance.
- Establish and maintain good relationships with advisers; provide basic counselling where required.
- Action and implement disciplinary procedures.
- Have an awareness of local competitor activity and recommend appropriate action.
- Keep up to date with systems and procedures.
- Regularly review progress against set targets; take appropriate action to ensure these are achieved.
- Maximise profitability within your area.
2(c) Assess the extent to which each organisation meets its objectives in customer care.
I have assessed the extent to which Marks & Spencer meets its objectives in customer care.
Increase sales
Marks & Spencer have increased their sales and they are currently near the top of the FT100 index; there has been a huge difference in sales over the past few years. Food sales have increased by 4.5% while sales of clothing, footwear, gifts and home items have increased by 16.6%.
Gain a competitive advantage
Marks & Spencer have an excellent competitive advantage over other stores. Marks & Spencer offer the best service. There have been numerous independent surveys and Marks & Spencer continue to always come out on top. Marks & Spencer have good product knowledge to meet their customers’ expectations otherwise they would not have this type of image. They are viewed as one of the most valued retailers wherever they trade and at all time they demonstrate a clear sense of social responsibility and consistency on decision-making.
Marks & Spencer is one of the best-known names on the British High Street. This will attract new customers for Marks & Spencer as many people recognize Marks & Spencer for being ‘one of the best’.
Attract new customers
For Marks & Spencer to grow productively, they need to get back to its core strengths - to those fundamentals that underpinned its success in the past - and begin their recovery from there.
A few years ago Marks and Spencer’s suffered a massive decline in customers due to the following:
- Products aimed at no specific customer.
To solve this problem however Marks & Spencer have built on their knowledge and understanding to provide exactly what their customers want. To do that they focused their teams on the classically stylish, core customer. That's not to say they are turning their back on younger shoppers. These will be served by Per Una supplied by George Davies -- products made exclusively for them and according to their standards, but in such a way that doesn't distract their own people from the core Marks & Spencer customer. Although they still have some way to go, Marks & Spencer are rediscovering their strengths ... superior style, quality and value, good-looking clothes that fit and wear well. That's what all their customers want.
After products, the plan addresses their stores.
Last year they showed a video of Fosse Park - one of 25 stores they refurbished as part of their 'new concept' last year. This year they are taking the most effective elements of these stores and applying them to a further 100 locations - 60 by October and the rest by March. In total, the changes will extend to around two-thirds of their space, so most of their customers will notice the difference.
If you're enthused as customers, you should also be excited as shareholders because you'll know that they are getting it right.
Marks & Spencer are also looking for new ways to meet customers' needs. Yesterday they opened the first of a new, small store format in Surbiton. This caters exclusively for customers who want to buy their prepared food products more conveniently, and it's called 'Marks & Spencer Simply Food'. There's another opening in Twickenham next week. In the coming year, they will be testing these and other ideas to help make their products more accessible, to more customers, more often.
So products ... stores ... and crucially, their people.
In the last couple of weeks, Marks & Spencer have announced a new head of women's wear to complete the clothing team for their UK Retail business. This year they also appointed a new Creative Director for Clothing, new heads of design for men's wear and children's wear, and new heads for stores and foods.
Marks & Spencer is able to recruit top talent because good people do want to be part of their turnaround team.
Their leaders are now working to motivate their teams, restore their confidence and get everyone lined up behind the changes.
Marks & Spencer's employees are some of the most skilled and dedicated in the industry. When all 60,000 are pulling together to provide what their customers want, they can exercise a powerful influence on their results.
They will benefit even more when they move their head office to Paddington Basin. There are good economic reasons for that … but will have a positive effect on their whole culture, and the way they work together to meet their customers' needs.
Marks & Spencer are focusing hard on these three simple components - products, stores and people.
The press covers everything Marks & Spencer do -- and what they have said has not always been positive! As long as the negative comments don't influence customers' and employees' attitudes, it should not affect them.
Marks & Spencer remain the biggest clothing brand in the UK by a huge margin. Ten million customers a week come into their stores. They are one of the best-known, best trusted, retail brands in the world. They have a very special place in the nation's affections, the most loyal customers and a tide of goodwill that want them to succeed.
Constant criticism makes life a whole lot harder for their people who are out there serving customers every day. It also affects customers' behaviour and therefore does slow down recovery.
In the past year, Marks & Spencer have put in place a strong leadership team. This team has developed a robust plan and is making very good progress in its implementation. They are doing everything possible to improve the value of our investment in Marks & Spencer.
All of the above helps to meet their objectives.
Gain customer satisfaction
Good store layouts, helpful and friendly staff and availability of products lead to customer satisfaction through having gained a pleasant shopping experience.
Encourage a motivated and efficient workforce
This is evident through the efficient training sessions and bonuses given to employees. An area that might suggest this is not being carried out successfully is the decrease in employment by 5% although it possible the company may have become more efficient and can now do the same work with less people.
All of the above will encourage a motivated workforce. If the workforces know what is going on within the business then customers will notice this.
It is essential to having a healthy, motivated, and efficient workforce. It is an important factor in the success of Marks & Spencer
Enhance the organisations image
A few years ago this objective was not being met, as people did not think very highly of Marks & Spencer as this has already been mentioned. Now that the problems have been identified and strategies implemented to overcome these, the image can slowly be restored.
3(a) Identify and explain the main needs of the customers of each organisation.
In order to provide a high standard of customer service you will need to understand the needs of customers and how to contribute to the satisfaction of these needs through excellent customer service provision.
The needs of the customers include:
- Safety and Security
- Clear and Accurate Information
- Expecting their consumer rights to be upheld
- Impartiality and objectivity
- Complaint and enquiry, and suggestion procedures
- Special Needs
- Ethical Standards
Safety and Security
Marks & Spencer have an active programme to protect the health & safety of their employees and customers supported by safety officers in each store and annual audits carried out by an independent specialist. Over the last year training has been focussed on store safety officers and managers. They have also been taking the opportunity to make their sale floors safer with their programme of store modernisation.
The major causes of accidents to their colleagues and customers are slips, trips, falls and being struck by moving objects on sales floors. Their actions in 2002/03 have concentrated on reducing these sorts of injuries.
Their customers have high expectations of Marks & Spencer products. They employ around 130 specialist technologists whose job is to set and develop quality standards and work with their suppliers to make sure that these are being met. As well as traditional types of product quality such as the taste of food or the fit of clothing they also pride themselves in taking a progressive approach to issues of social responsibility.
You'd expect them to operate effective systems to ensure the quality of thier clothing, what you might not expect is the use of independent specialists to help ensure that all designs of children's clothing are ethically suitable or their 'needle policy' which bans all sharp pieces of metal such as staples where our children's clothing is being manufactured or stored.
Clear and Accurate Information
Marks & Spencer go out of their way to provide clear and comprehensive labelling on packaging so you can make informed choices about what you eat.
Nutrition Panel
This tells you how much energy (Calories and kilojoules) and nutrients are present in the product. Labelling regulations dictate the order and nutrients included here.
Energy
This can be useful if you are trying to lose weight.
Protein
You might be surprised how much protein there is in cereals and milk, not just meat and fish.
Carbohydrates
These are broken down to show the sugar content. This can be sugars naturally present in foods such as milk (lactose), fruit and vegetables or can be from added sugars such as honey, table sugars, and syrups. The remaining carbohydrate is made up of starches, which are essential for energy.
Fat
This is broken down so you can see the amount of saturated fatty acids. On some products such as butter and fat spreads polyunsaturated and mono unsaturated fatty acids are shown too.
Fibre
This includes both soluble fibre (helps to lower blood cholesterol) and insoluble fibre (promotes good digestion). We're recommended to have around 18g of fibre a day. Having five portions of fruit and vegetables a day plus wholegrain products, beans and lentils will help achieve this target.
Sodium and salt
Salt is made up of sodium and chloride. Because of the recommendation to keep salt levels to a minimum (6g per day for adults) for good health, we list both the salt and sodium content so you can track how much you are eating. Look out for the new salt balanced icon (below).
Ingredients
Provides clear and comprehensive information on what the ingredients are
in each product.
Guideline Daily Amounts
This shows the recommended average daily amounts of calories, fat and salt for adult women and men, so you can compare how the product fits within the recommended amount.
Contains
If you have an intolerance to certain ingredients this will help you quickly identify which foods to avoid, by showing when a product includes allergens such as cow's milk, wheat, eggs, fish, shellfish, sesame products, nuts, gluten, soya. It will also mention the presence of phenylalanine and salt substitutes such as potassium chloride.
Customers also expect to be able to find their way around the store easily and not have to spend valuable time trying to locate a specific product. Marks & Spencer’s provide clear signs to identify what is sold in each aisle by putting signs up high so customers can see them clearly. This improves good customer service. An information desk is also available to customers in the store, this makes it easier for customer to find out information without having to ask a member of staff on the floor who will already be working and may not have the information the customer requires.
Expecting their consumer rights to be upheld
Ethical Trading
Customers have the right to expect that Marks & Spencer products will provide them with truly aspirational levels of quality and value without exploiting the people who work for their suppliers. That's why a summary of our their standards called the Marks & Spencer Global Sourcing Principles forms part of the contract between us and our suppliers.
Their technologists regularly visit suppliers and where they want extra assurance about their standards on child labour, safety, pay, terms of employment, and working hours they use 'ethical audits'. Many of these audits are conducted as part of their participation in the Ethical Trading Initiative that brings together groups representing government, business, trade unions and human rights groups.
Set out below are the Global Sourcing Principles Marks & Spencer expect all suppliers to meet, then use as a base to raise standards further as their business relationship develops.
Supplier's Responsibilities
Together with each supplier they establish a set of standards, which includes specifications appropriate to the industries and countries producing the goods. It is the supplier's responsibility to achieve and maintain these standards.
Workforce Rights
The people working for their suppliers are to be treated with respect, and their health, safety and basic human rights are to be protected and promoted. Each supplier must, as a minimum, fully comply with all relevant local and national laws and regulations, particularly with regard to:
- Working hours and conditions, rates of pay and terms of employment.
- Minimum age of employment
Moreover, whatever the local regulations, workers should normally be at least 15 years old; as a norm, they should be free to join lawful trade unions or worker's associations.
Production Sites and Labelling
Suppliers of goods must agree with them in advance the production site or sites to be used for each order and no subcontracting of their orders from these agreed locations is allowed. All goods must be labelled with their country of origin.
Regular Assessment
All production sites are to be regularly visited and assessed by their suppliers and by their own staff. Together they will strive for continual improvement.
Environmental Responsibility
At the very least, suppliers must meet all relevant local and national regulations. In addition, they expect them steadily to improve their environmental performance by aiming to comply with international standards.
Dedicated Production Units
Once they have established significant levels of business with a supplier, they expect that supplier to produce their goods in units, and with workers, dedicated to Marks & Spencer orders.
Commitment to Extending Principles through the Supply Chain
They expect their suppliers to adopt similar principles in dealing with those who, in turn, supply them. Suppliers must not only apply these principles at all times, but must also be able to show they are doing so. Marks & Spencer will take action against suppliers who do not comply, which may involve cancelling their orders and ceasing to trade.
Special Needs
Over a million people in the UK (one person in 60) has severe loss of sight and every day almost 100 more are officially registered blind or partially sighted. Most of these people have difficulty reading print and may not be able to identify people or products. They may also have difficulty finding their way around unfamiliar premises.
All of them are potential customers - training your staff to serve this customer group is crucial.
3(b) Illustrate how customer enquiries, complaints and suggestions are handled.
I have illustrated how customer enquiries, complaints and suggestions are handled within Marks & Spencer.
Complaints are a major source of information about what people think of the services they are receiving and where things are going wrong. The importance of getting customers’ views on the following is very important:
- Whether complaints systems are easy to use;
- The complaints procedures;
- The fairness of the reply;
- The way the complaint was handled; and
- Satisfaction with the remedy offered.
Building a strong relationship with customers and clients is vital to the success of any company. This includes Marks & Spencer.
What a truly successful business does is addressing the needs of its customers, retains them and builds brand loyalty that lasts. Think about to whom or what you are loyal today - it will be somebody or something that you know, or that you trust, that doesn't let you down.
Marks and Spencer structure the operation of their customers care procedures according to customers, individuals and specific needs; there is a need for all organisations to have procedures to handle customer needs. Procedures should be in place for:
- Communication with the customers
Making aspirational quality accessible for all – this is a part of Marks & Spencer’s mission.
“To help make our society a healthier and safer place in which to live and work, and to provide equal opportunities for all."
Being a good corporate citizen and investing in communities is an integral part of the way Marks & Spencer have always done business. By actively supporting the community, and being socially responsible, they are bringing real benefits to their customers, employees, shareholders, business partners and voluntary and charity organisations.
The long-term success of Marks & Spencer depends upon healthy, safe and self-sufficient communities. They believe that creating partnerships with key business areas and community-based organisations can offer great opportunities for their mutual benefit. Their support not only improves the prosperity of local communities but also, in turn, strengthens their reputation.
Different methods that Marks & Spencer use to communicate with its customers, an example may be:
- Direct Communication with Customers
This just means that customers can talk to employees of Marks & Spencer face-to-face about problems they may have. Customers may also talk about suggestions they may have or any enquiries.
Marks & Spencer have different complaints procedures depending on the seriousness of the complaint, for complaints that are not very serious the following steps of action will be taken:
- Refund product
- Offer alternative
- Compensation
For more serious complaints, Marks & Spencer take more serious steps to resolve the problem. These are as follow:
Contact them
The first step is to telephone or write to their customer service advisers who will be happy to help you with your query. The contact details will depend on which product you have.
Acknowledging your complaint
Marks & Spencer will make every effort to deal with your query immediately, if this is not possible, they will respond to your complaint within 5 days. Hopefully they will be able to tell you that the matter has been resolved, if not they will continue to investigate and keep you informed of any progress. Marks & Spencer have a maximum of 8 weeks in which to complete their investigations. They will contact you again after 4 weeks and finally at the end of 8 weeks.
Arbitration Service
If you are not happy with the Final Response, you have the right to refer your complaint to an independent arbitration service such as the Financial Ombudsman Service (or other arbitration facility as appropriate).
3(c) Analyse how effectively customer needs are catered for by each organisation.
It is important that the needs of the customer are carried out effectively in Marks and Spencer; to do this properly they have the following procedures:
Communication with the customers
The success of a business depends on good working relationships between employers and employees. Job roles and responsibilities need to be clear, the organisational structure has to be well defined and there must be good lines of communication. Working arrangements are often flexible so that everyone can adapt to changing business practices and make the best use of new technologies. Everyone in work needs to know their legal rights and responsibilities and what to do in the case of a dispute.
Marks and Spencer’s consider them as having good communication with their customers, they ensure this by training employees to communicate properly with their customers. Marks & Spencer communicate with their employees through magazines, letters, leaflets and face to face.
Investigating the issues raised
As I have mentioned above Marks & Spencer handle complaints very seriously. All complaints in Marks and Spencer are investigated by head office. The customer is given a form to give details of the nature of the complaint, which is then sent to head office that acts on the complaint immediately.
Staffing
The targets of sales Marks and Spencer’s have for particular months of the year will determine staffing levels e.g. Christmas. Due to seasonal variations staffing levels will rise or fall.
Monitoring the quality of customer service
This is done in many different ways. I have listed a few below:
How good is the customer experience at the point of sale? Is it living up to the brand promise? Marks & Spencer are continuing to build our network of mystery shoppers throughout the UK.
- Comment cards and customer surveys#
Customer surveys are the ideal opportunity to gain primary information about what your customers want, and just as relevantly, how they perceive you. Even if their perceptions are 'wrong' you must always remember that the customers perceptions, are, to them, the reality.
A business can only succeed by giving customers what they want. Lose track of changes in their wishes and business will quickly suffer.
If Marks & Spencer are to succeed, they will have to start to accept credit cards. Many people now possess a card and some customers may be put off visiting the stores because they know that they cannot put their purchase on their card and pay for it when the bill for the card arrives. Furthermore, they are one of the only major retailers in the country that does not offer any form of ‘Rewards’ or ‘Points’ system. If they introduce such a system then they may find that they will have increased customer loyalty because more people want to earn reward points. As a result, customers will want to spend more in an effort to earn points. This system has worked very well for supermarkets such as Sainsbury, Safeway and Tesco.
The legal dimension
Marks and Spencer’s abide to legal policies. They keep a record of employees working each day encase of an emergencies that may happen.
Marks and Spencer Financial Services plc is a member of the General Insurance Standards Council. The above company represents only the Marks and Spencer Financial Services Marketing Group for the sale of life assurance, pensions, unit trusts and associated products.
The store is always kept clean which meets the Health and Safety act.
Any company with more than 5 employees is legally obliged to possess a comprehensive health and safety policy. Professional Health and Safety Consultants can provide your company with a bespoke safety policy; the document is around 100 pages long and any extra sections that you may need in respect of your particular business practice can be written for you at an extra charge. There are many pro-formas that come with the policy that can be photocopied and re-used if needs be and we are always happy to assist you with any enquiry you may have however large or small. Prices vary according to specific needs and are therefore only available on application.
The sections shown below only represent a very small sample of the wide variety of information contained in the policy but can give you an idea of the type of information contained in a Professional Health and Safety policy.
Health and safety regulations of 1974 Act state that all employers have a responsibility to ensure health and safety requirements of their employees. All companies regardless of their size must have a written safety policy ensuring implementation of Health and Safety Act and indulge themselves in carrying out the risk assessment on all their activities.
A customer would feel dissatisfied if they thought the store wasn’t meeting legal requirements.
3(d) Evaluate and compare each organisation’s performance in meeting its customers’ needs.
4(a/b) Identify and describe the ways in which the organisation monitors and assesses the quality of customer service. Also analyse how effectively each organisation monitors and assesses the quality of customer service offered.
Assessing the quality and effectiveness of customer service
It is important for Marks & Spencer’s to continually assess and monitor the quality of their customer service, to ensure that their service is meeting the needs of their customers and if not they can identify changes that need to be made.
Ways for Marks & Spencer’s to do this is:
Individual performance reviews of their employees to ensure that their staff are happy with their work. It also means that Marks & Spencer will know that the employee is working to their ability.
As part of an extensive programme of work undertaken over the last 12 months designed to re-enforce the strengths of the Marks & Spencer brand, the company today unveiled its updated brand identity to 70,000 employees worldwide.
Marks and Spencer’s also review their mystery shopper’s reports to ensure customers always receive the same level of service so that they are not disappointed that the service does not meet their expectations. If a mystery shopper sees a problem in the store e.g. long cues at checkouts they can inform Marks and Spencer’s who will then make the necessary changes.
The strategic review confirmed that, underpinning those values is a proposition that, not only is unique, but also is as valid now as it was in the past.
This is a fantastic foundation for Marks & Spencer, combined with what is now a clear strategic direction and a very unique and intimate relationship that their customers have with them: they passionately want them to succeed. This shows that marks & Spencer have definitely met its customer’s needs.
Critical to this is the scale and authority that Marks & Spencer have in most of the markets in which they operate. This enables them to generate a quality and a price equation that, when combined with constant innovation, delivers value that cannot be matched by their competitors.
This unique product proposition will be delivered in a shopping experience that is not only ‘easy to shop’, but efficient to run and efficient for their customers to shop in.
These principles translate in to one embracing commitment to their customers and that is ‘to deliver aspirational quality accessible to all’.
Company performance
Marks and Spencer is one of the most profitable companies in the UK. It has had a reputation as a safe 'blue chip' investment for decades. Figure 1 shows that between 1992 and 1998, M&S pre-tax profits increased every year. It has probably the most marketable brand on the high street. For its customers, Marks and Spencer's reputation is built on quality, dependability and good value. For its employees, M&S offers high quality training, staff development, and welfare, and relatively good job security. In return, the employees subscribe to the firm's values and methods of working.
Marks and Spencer remains one the UK's most profitable companies. Competitors are catching up rapidly, and M&S has had to evolve to respond to these challenges. The recent changes in management structure reflect this. The difficulty for M&S is achieving the right balance between the corporate values that gave it its strong market position, and the innovation that is required to stay competitive. Past experience suggests that M&S has the capability to achieve this. It is the strength of the M&S brand and its product quality that has enabled it to sustain profitability over the long term, and to be less vulnerable to changes in market conditions. In the shorter term, a number of factors, such as the effect of lower interest rates and undisrupted trading at the converted Littlewoods stores, should help to improve profitability later on in 1999.
Customer feedback helps with pricing strategies, as it allows Marks & Spencer’s to see that customers feel they are getting good value for money. Most customers have an idea of what they should be paying for a particular product and will be dissatisfied if it does not meet their expectations so customer feedback is an important factor to asses there pricing levels. If their prices are too high customers will go else where which will then lead to a fall in their sales.
Marks & Spencer believes that its customers have the right to expect that Marks & Spencer products will provide them with truly aspirational levels of quality and value without exploiting the people who work for their suppliers. That's why a summary of the company's ethical standards called the Marks & Spencer Global Sourcing Principles forms part of the contract between Marks & Spencer and their suppliers.
Priority is given to the checkouts/tills in Marks & Spencer’s rather than work on the floor. Customers don’t want to have to queue at checkouts; they expect a quick and efficient service. Each store has a ‘model’ for staffing though during sales extra staff are hired to ensure the satisfaction of their customers.
It is important that staff have a happy attitude in their work, due to an unpleasant employee causing a dissatisfied customer.
In each store there is a health and safety officer who ensures Marks & Spencer’s comply with the Health and Safety at Work Act, 1974 by ensuring the welfare of people at work and the protection of outsiders risks to health and safety. Encase of an accident there are first aiders and an occupational health team available at all times. This shows Marks & Spencer’s care for the safety of their customers, which is part of good customer service.
Marks & Spencer have an active programme to protect the health & safety of their employees and customers supported by safety officers in each store and annual audits carried out by an independent specialist. Over the last year training has been focussed on store safety officers and managers. They have also been taking the opportunity to make their sale floors safer with their programme of store modernisation.
The major causes of accidents to their colleagues are slips, trips, falls and being struck by moving objects on sales floors. Their actions in 2002/03 have concentrated on reducing these sorts of injuries.
97% of available stock must be on sales floor for customers, so as customers are not dissatisfied with the products available. It is also important for Marks & Spencer’s to make is easy and straightforward for their customers to buy a product as it is an important factor for their high quality criterion. There will be a loss in customers if the accessibility for products is difficult e.g. people in wheel chairs are unable to find disabled parking spaces.
Marks & Spencer have radically refocused the Company towards their customers, who are noticing a difference in their stores and products. They have slowed the sales decline and current trading continues to improve.
I am confident that the changes they have made to reposition Marks & Spencer as a modern, customer-facing business will achieve a sustainable recovery.
5 Making recommendations for enhancing the quality of customer service in each organisation.
Marks & Spencer’s refund policy needs to be more secure as some customers may feel the products they are buying aren’t completely new, as Marks & Spencer’s allow customers to return goods very easily.
Marks and Spencer’s need to decide what type of customer they are going to cater for. This is a problem, which is being partly addressed, as they are looking more for 31+ with the Pur Una range, this is only one of the problems they still don’t cater for teenagers and they may also need to consider targeting early 20’s as they have the biggest spending power.
Parking is not good in the Greater Belfast area. It is expensive to park in Belfast this may be a problem as customers cant afford to park their cars in car parks and may have to park outside Belfast which means they will have a long walk back to their cars with a lot of heavy bags. Sprucefield and Forestide have free parking though it’s not uniform through all stores.
Marks and Spencer only sell their own brands, they may consider selling other brands as well. At checkouts they only have their own leaflets and magazines unlike Tesco they have a wide variety of different magazines.
Marks and Spencer don’t have a home delivery service except for furnishings, this could be an idea for the future as it would attract a lot of people who cant manage shopping e.g. elderly, young mothers etc
Tesco
1(a) Describe the importance of customer service to each organisation.
Customer Service
Their core purpose is to create value for customers to earn their lifetime loyalty.
Giving First Class Customer Service is the most important aspect of the Tesco business. It's their staff that makes all the difference, and Information Technology is a key part of their innovative customer focused approach. At Tesco, IT creates genuine advantages for them as a business, and their new generation Siemens Nixdorf Point of Sale solution allows them to place even more emphasis on First Class Service through the use of leading edge technology at the Point of Sale."
Tesco is the UK's leading food retailer with 568 stores throughout the country. The company has grown internationally; opening over 200 stores across Europe, and was recently voted 'Britain's most admired company' in the annual Management Today survey.
According to Tesco IT Director, Ian O'Reilly: "Our customers are constantly telling us that our people are our best asset. In all parts of the company, service is key, and it's the enthusiasm of our people in delivering First Class Service that drives our business forward. During the last year we've added more service counters in our stores, extended opening hours, and even opened some stores through the night to help customers shop at the times that are most convenient for them”.
Tesco is a team dedicated to professional management of both people and property. They are committed to each other through mutual respect and support. They realise the importance of individual growth in order to strengthen the whole. They invest in the development of the individual through training, education and reward.
Tesco is committed to serve their owners, their residents, agencies and each other with integrity, fairness and honesty. They seek a balance between preservation of their resources and realisation of profit. They strive to combine accuracy and reliability with accountability.
1(b) Explain how the customer care service function operates within each organisation.
What is customer service?
The provision of a high standard of customer service is an important part in the overall performance of an organisation. Many organisations would not be able to maintain a satisfactory level of sales, or be able to maintain a competitive edge in the modern business environment without effective customer service. You need to be aware that customer service involves:
- Presenting an image of the organisation
- Making sure that the needs of the customer are met by the product or service offered
- Providing information
- Giving advice
- Taking and relaying messages
- Keeping records
- Providing assistance
- Dealing with problems
- Handling complaints
The importance of customer service
An organisations level of sales is greatly influenced by the standard of customer service that it encourages in its staff. A high standard of customer service is important for an organisation in order to achieve the following objectives:
- Increase sales
- Gain a competitive advantage
- Maintain customer loyalty
- Attract new customers
- Gain customer satisfaction
- Encourage a motivated and efficient workforce
- Enhance the organisations image
Customer service in Tesco involves the following:
Presenting an image of the organisation
Tesco is committed to playing a positive role in the community.
Each year the Tesco Charity Trust gives financial and practical help to hundreds of charities and projects that support children, education, people with disabilities and the elderly in areas local to where we have stores.
Tesco Charity of the Year
As the part of their continued commitment to supporting local communities, each year Tesco adopts a national charity to be the main focus for staff fundraising activities. This year the Tesco Charity of the Year is Barnardo's.
During 2003 Tesco staff throughout the UK will be taking part in events and activities to raise funds for the charity, which will receive a 20% "top up" from the Tesco Charity Trust.
This would definitely enhance Tesco’s image as people would feel that by buying from Tesco, will mean that they are also doing there bit as a sum of their money will go towards each charity.
Tesco is committed to protecting the environment, using its commercial strength to put robust principles into practice.
Their environmental standards apply to every aspect of their business and Tesco also asks its suppliers to adhere to many of these practices.
Calling on expertise from all quarters, they continually seek ways to improve further – their customers expect no less. Tesco staff is often invited to join policy groups so that the company’s expertise may be used to help other businesses across the country.
Again people want their environment to be looked after, and buying shopping with Tesco they will fee that they are helping to do this. Also because the staff are involved in protecting the environment by invitations to join policy groups then they will be encourage and motivated to make an efficient workforce.
Tesco & recycling
Tesco is committed to minimising the amount of waste produced and to recycle it wherever possible.
They have a comprehensive recycling programme for their own operations and for their customers. Secondary packaging is kept to a minimum and recycled where possible. Wherever possible, paper, polythene and other consumable items used by Tesco, as well as some non-food products and consumer packaging, contains a proportion or recycled materials.
Tesco has its own recycling units, recovering paper, cardboard and plastic that would otherwise be consigned to landfills or incinerated.
Ink-Jet Cartridge Recycling
In August 2002, Tesco launched the ink-jet cartridge (IJC) recycling scheme in an attempt to reduce the amount of IJC that are thrown away and to raise money for charity.
The recent IT boom over the last few years has made printers and fax machines much more accessible. An average family uses six ink-jet cartridges each year and 90% of IJC are thrown away and end up clogging land-fill sites and causing environmental damage.
The scheme is simple - pick up a FREEPOST recycling envelope which are available in Tesco stores and for every IJC that is recycled, a £2 donation will be made to Cystic Fibrosis Trust.
As the biggest customer of UK agriculture, Tesco has a long-standing commitment to source as much UK produce as possible, where availability and quality permit.
For instance, nearly 100% of their fresh beef is from the UK, 100% of their fresh pork, 100% of their fresh, organic and long-life milk, and 100% of their eggs are sourced from this country.
Their success as a business is built on understanding customer needs better than anyone else and they want to help UK farmers achieve the same. They regularly talk and listen to farmers and suppliers so that together they can provide customers with the quality produce that they demand.
Can you lead a healthy life and still enjoy your food? With Tesco, the answer is yes!
Tesco has been listening and responding to customers’ views on health since the launch of the Healthy Eating range in 1985 and helps you make informed choices for you and your family.
Making sure that the needs of the customer are met by the product or service offered
Catering for all tastes
Tesco is Britain’s best value supermarket. Not only is no supermarket cheaper than Tesco on products of the same quality, but they also offer unbeatable quality, range and service. They understand their customers have different tastes and requirements. Thieir in-store offer ranges from the Finest products to their Value range, catering for every customer in every community.
Organics
Already the UK’s largest organics retailer, Tesco has plans to grow sales to £1 billion over five years. They recently announced a further £12 million of organic produce being sourced in the UK. Responding to customer demand, they also extended their organics range to over 1,000 lines and cut prices on the 50 most popular lines.
Finest
The Finest range has grown by 300 lines over the year to 800, with additions including Finest Roast Onion Mayonnaise and Finest whisky. The brand is now worth over £400 million. Tesco Finest is also sold internationally – in Taiwan you’ll find Finest jams and sauces.
Value
Values lines can now be found in all our European markets. Hungary has Value vodka and cheese. You’ll find Value dumplings in Poland, while the Czech Republic has 200 Value lines across all ranges, including fresh foods and grocery. In Thailand they have Tesco own-brand products and over 500 Supersaver lines, while Value lines in Taiwan include fresh fruit and vegetables.
Bringing Prices Down
Their consistent approach to forcing down prices has resulted in £1.2 billion of price cuts over the past six years. February saw a further £70 million of price cuts across 1,500 lines in the UK. They employ the same strategy internationally, aiming to be the best value retailer wherever they operate.
Providing Local Flavour
Wherever they operate they cater for local tastes, providing customers with the products they want, at the prices they want. Their local products are clearly identified with country or county of origin – sometimes even the farm they came from. Providing products to meet local customers’ needs is also clearly visible in their international operations. They sell Welsh beef in all their Welsh stores. Their stores in Poland sell live carp, while in their South Korean stores you can buy 6-feet long strips of seaweed, live octopus and giant radishes weighing 2.5kg.
Excellent Exports
This year Tesco was named Retail Exporter of the Year. Their Special Reserve Whisky is going down a treat in Taiwan, where the popularity of Tesco Lemon Curd has also spread. Customers in Thailand, the Czech Republic and Taiwan have now got a taste for Tesco Muesli, having seen it featured in the film Bridget Jones’s Diary.
Innovation On A Plate
They introduced 3,500 new food lines this year, including their ‘Ready to Bake’ range for special dietary needs. New counters are being rolled out to some stores, including olive bars, pizza and Grab and Go. Responding to customer needs, they now plan up to 32 seasonal ranges a year, up from four just three years ago. This year they also acquired a majority stake in The Nutri Centre, enhancing their health and beauty offer and meeting their customers’ desire for natural products.
Healthy Eating
They now have nearly 400 Healthy Eating lines in stores. January saw the launch of their
Healthy Living Campaign. Two new food ranges – ‘Free From’ for special dietary needs and the naturally healthy ‘Food Doctor’ – were launched and backed by a new Healthy Living Club and website (). The Healthy Living brand also covers their 5 A Day campaign to encourage people to eat five servings of fruit and vegetables a day to help reduce the risk of cancer.
One-Stop Shop
Customers love their non-food offer. In the UK they have over a 4% market share, on track for their target of 6%. Their extensive non-food range offers the quality, range, service and price that their customers expect – whether it be in their Extra stores, Superstores or online. This year they have launched thousands of new lines offering more choice in more markets for their customers.
Offering Best Prices
They have significantly reduced the price of thousands of health and beauty lines resulting in market leadership in sales volumes. This year they saved customers over £70 million by significantly reducing prices on many non-food lines, including branded goods such as Levi Jeans and Apple Mac computers. Following the end of Resale Price Maintenance on medicines they cut their prices by up to 50%. They continue to campaign to have more freedom to import branded goods from outside the European Community so that they can bring even greater value to their customers. The introduction of Value lines into their clothing offer saw adult jeans for £7.99, kids’ jeans for £4.99 and adult T-shirts for £2.99.
Understanding Local Customers
Listening to customers allows Tesco to fine-tune their ranges, opening hours and even the type of store they build in a local community. Catering for individual needs and employing local people not only benefits customers – it’s also good for staff, shareholders and society as a whole. They pursue their focus on customers wherever in the world they operate.
Staying Local
Wherever in the world they operate, they stay local. The majority of store managers in Europe and Asia are local people and they have development programmes to grow thier local talent for the future. Local sourcing, wherever practicable, means many products are sourced from within each national market.
Keeping It Simple
In October they unveiled an innovative new concept in store design at Irlam, Manchester. They put together in one store a host of new initiatives aimed at making things better for customers, simpler for staff and cheaper for Tesco. Their new store layout ensures that high volume products are moved as little as possible, many counters have self-service options and the flow of products to and from the sales floor has been improved.
Shop Around The Clock
They now have 365 UK stores open 24 hours a day, meeting the needs of people with different lifestyles right across the country. This year, Taoyuan Chingkou became the first hypermarket in Taiwan to operate 24 hours a day, 365 days a year; many of their international hypermarkets operate on a 24 hour basis.
A Refreshing Change
Refresh My Superstore was launched this year, giving customers a real say in how their store is improved. Before any work is carried out, customers and staff are asked what changes they would like made, from the product ranges to the car park layout. Their feedback forms the basis of the work then carried out. In the coming year they plan to refresh over 100 of their UK stores.
Formats That Fit
Their customers have different shopping needs, so Tesco vary their store format for them, tailoring the design so each store is better able to serve its community and make shopping more convenient.
Extra Stores
Provide destination shopping with an extensive food and non-food offer, on major sites.
Supermarkets
Provide one-stop shops for the weekly shop.
Metro Stores
Provide convenience in their high streets.
Express Stores
For top-up and impulse shopping, can be found in busy thoroughfares.
Investing and Innovating
Their UK step change programme achieved savings of over £200m in its second year. Based on the principles of better, simpler and cheaper, their operations were improved and efficiencies increased. A combination of new systems and new processes realised these savings:
BREAKING NEW GROUND: LEADING EDGE SYSTEMS
Their Continuous Replenishment system, where products are ordered automatically based on continuous information flows from their checkouts, is now operating on nearly all food and drink lines, raising availability and simplifying operations.
Using the world’s first store-specific merchandising system Tesco can now tailor each store range to meet the precise needs of its customers. Linked to continuous replenishment, product space is allocated to demand.
A new automatic scheduling system in stores works out the optimum staffing levels required at checkouts, to match 12 million customers per week with 18,000 checkouts.
First For Finance
Tesco Personal Finance (TPF) is one of the UK’s fastest growing financial services businesses. Over one million accounts and policies were opened this year and their share of profit rose from £3 million to £20 million. TPF now has over 2.5 million accounts. With 20% of sales now originating from the Internet and 80% of business coming through the stores, Tesco products are available where and when their customers want them.
Shopping
Tesco.com is the biggest online supermarket operator in the world. Covering 95% of the UK population, they have delivered to over a million homes. The site receives millions of unique visits each month. This year turnover reached £356 million.
Tesco.Com...
...Was voted E-tailer of the Year in the 2001 Retail Week Awards, Best E-Commerce Service at the World Communication Awards and won the Large Corporate category at the Daily Telegraph and Barclays Bank @chievement 2001 awards.
...Is pioneering Internet home shopping for blind and partially sighted people. The new Tesco.com access site () is much simpler to use for visually impaired people, allowing text to be increased in size. If shoppers use a screen reader, a voice from the computer guides them as they shop online. This technology has also opened up shopping on the move via a pocket PC or smartphone.
Tesco.Com also sells a huge range of non-food products. A new wine warehouse was launched in 2001 offering a much larger range of wine by the case than at a conventional store. Their broad range of online warehouses offers everything from prams to flowers and TVs to dishwashers. For example, their online entertainment warehouse carries 1.2 million books plus every single CD, video, DVD and computer game on UK release.
Providing Information
Information is provided to customers at point of sale with leaflets showing new products, nutrition and recipes.
At a time when other online retailers in the sector have been struggling and closing their web operations, Tesco.com is growing every day with more active customers and increased turnover on the site. Month on month throughout 2001,it has broken new records for the number of transactions it has been handling. It's an acid test that the architecture and infrastructure of the site are robust enough to handle in excess of 2500 transactions per hour in peak traffic with a turnover of around £7m per week. You can find lots of information on all of the Tesco products on their website.
Tesco also gather information from their customers using a Clubcard. They are able to see each customer’s buying habits. Also BA Miles can be earned through your Tesco Clubcard.
Tesco Clubcard holders are sent reward vouchers at three-monthly intervals. The value of the voucher depends on how much customers spent in Tesco stores during preceding quarter.
2(a) Describe the strategies used by both organisations to ensure a high standard of customer service.
Strategies used to ensure a high customer service
Increase Sales
Tesco now have their non-food accounting for 40% of their business. Tesco is to become the focus of a nationwide campaign on genetically modified (GM) food. The first own-branded products began appearing on UK store shelves in the late 19th century. Since then, own-brand, or private-label, products have grown to become one of the strongest areas within the retail industry. For many years, own-brand products were viewed as inferior, cheaper alternatives to the branded lines available in shops and supermarkets
nationwide. However, own-brand goods are now among some of the most successful product ranges offered in store, particularly within supermarkets.
Tesco is rated the number one company for the past three years.
With a 12 million customer base, 700 stores in the UK and a 24% share of the grocery market, Tesco is undoubtedly the market leader. Launched in 1995, the Tesco Clubcard scheme was to be the UK’s first supermarket customer loyalty scheme since Green Shield stamps in the mid-70s. This is quite a legacy to match. But response to the scheme was instant and overwhelming – to date, there are 8 million Tesco Clubcard members. This will without a doubt increase sales for Tesco. This may also increase sales because Tesco customers feel loyal to the company and want to gain points on their cards.
Their total international sales have surged from 37.4% to 4 billion pounds and pre tax profits have saved 60.8% at 119 billion pounds due mainly to the company of 6 hyper markets in Europe, 18 in Asia giving Tesco a total of 102 outlets over seas.
Gain a competitive edge
Loyalty cards can also be a point of difference allowing Tesco to gain a competitive advantage. Tesco have enjoyed significant incremental sales from being the first major multiple to offer loyalty cards along with Safeway.
Tesco has become Britain’s most successful food retailer, leaving competitors in its wake, yet only a decade ago the company was regarded as falling behind. Clearly, in order to succeed, the company had to build bigger and better stores, place higher priority on customer services, change management attitudes and revise their ‘store culture’. This is an advantage for Tesco as many people will see them as being one of the best.
Having price comparisons with other supermarkets is also an advantage for Tesco as they have the lowest prices. If customers perceive Tesco as a business that offers lower prices they will remain loyal.
Supermarkets want to avoid price wars, unless they know that they can win, as price wars only result in a short term profit increase and in the long run, profits fall for everyone in the market sector. This is called the 'game theory,' where companies try to guess what their competition would do in the light of a change in price strategy. However, all the supermarkets are better off if they all keeping the prices constant, that way none of the supermarkets have to reduce their prices that subsequently cut profits.
According to Business in the Community’s Cause Related Marketing Tracker, the biggest programme in 2001 was the Tesco Computers for Schools scheme, which put £7,500,000 worth of IT equipment into UK schools last year.
This sort of information becomes vital for a competitive edge as we move towards electronic shopping, when the customer can decide to purchase at any time of the day. The fact that people now make twice as many telephone calls after 11pm than they did a decade ago, many of them to 24 hour service centres, has underpinned the notion of telephone shopping. On-line banks are open all the time, 365 days a year, with one-third of banking transactions now taking place out of hours. The trend is set to continue as was disclosed in a recent report sponsored by BT and First Direct. We can all now purchase books, insurance policies and theatre tickets via the telephone. This trend will undoubtedly have future implications and place severe pressure on shops to open longer hours in order to compete effectively against other methods of shopping available to customers.
Maintain Customer Loyalty
Tesco can maintain their customer loyalty through their loyalty cards. Loyalty cards enhance customer loyalty directly by offering rewards as an incentive to shop at Tesco supermarkets. Tesco loyalty cards also generate considerable information on their customers. Tesco can then use this information to tailor product offerings, promotions, investment and advertising to the needs of their customers, thereby indirectly enhancing and maintaining customer loyalty.
Own-brand products appear in a variety of markets, and many own brands have been developed to become, effectively, stand-alone brands, but with fewer risks and associated costs. Many own-brand lines have also been developed for the purpose of returning higher profit margins, as well as promoting and attracting customer loyalty.
Tesco are very successful is maintaining customer loyalty.
Attract new customers
Word of mouth is an important factor when attracting new customers, therefore it is important all customers have a pleasant experience in the store, dissatisfied customers tell at least 15 people about the bad service they receive.
Tesco also have a number of special promotions in which attract new customers. Shopper insight is important in UK grocery. Promotions too will become increasingly shopper and format focused. Store and brand loyalty do not have to be incompatible. Shoppers can be rewarded for consistently buying the same brand in the same store - perhaps in real time at the checkout.
Early indications point to retailers and suppliers taking a more sophisticated strategic approach. What is a particular promotion designed to achieve? Who will benefit from it? Buyers and national account managers are currently rewarded for short term results and look for instant success. Promotional activity needs to be discussed jointly at a higher level if it is to provide long-term benefits.
Tesco run a mainly EDLP strategy with promotions increasingly targeted to shoppers and store formats, using Clubcard data.
Enhance the organisation’s image
Tesco is a respected company, it’s stock market listed and in the top 100 companies index and they are the number one retailer in the UK with the biggest number of stores.
Tesco are the second biggest employer outside the Civil Service and has been the number one retailer in the UK for the last three years regarding the number of employees.
Tesco also enhances its image through its charities. People will think highly of Tesco and will shop in their supermarkets if they feel that their money is helping to go towards some of the following charity for example:
As the part of their continued commitment to supporting local communities, each year Tesco adopts a national charity to be the main focus for staff fundraising activities. This year the Tesco Charity of the Year is Barnardo's.
During 2003 Tesco staff throughout the UK will be taking part in events and activities to raise funds for the charity, which will receive a 20% "top up" from the Tesco Charity Trust.
This would definitely enhance Tesco’s image as people would feel that by buying from Tesco, will mean that they are also doing there bit as a sum of their money will go towards each charity.
2(b) Explain how different members of staff contribute to good customer care in each organisation.
Tesco have four different types of stores as follows:
With a name like Express, it's not surprising that this is Tesco’s fastest growing format, opening at least 50 stores a year! It meets customer demand for longer trading hours and greater convenience - and their own people love it, too. "It's one team, like a family", commented one recently. Express stores are usually found at petrol stations and are aimed at local customers who want a convenient place they can trust to 'top up' their shopping or replace home essentials. Each is a single unit of up to 3000 sq ft, stocking around 2800 lines, including fresh and frozen food, ambient goods, a bakery and, in many cases, wines and spirits. The stores are very busy and it's a very fast-moving, hands-on environment.
Site Managers are responsible for a significant weekly turnover and a team of 20-40 staff. An Area Manager who supports 10-14 stores supports them. Within each Express store there are Duty Managers with operational area control, such as Stock, Cash, People, or Customer Service, who manage their own teams. Meanwhile, Customer Assistants serve their customers, keep the shelves stocked, help bring in deliveries and generally ensure that the store keeps giving the great service our customers expect.
Express is an ideal way into retail for people with experience of managing teams in other fast-moving, customer-facing environments.
When they say Extra, they really do mean extra! These larger stores sell a wide range, focussing on breadth rather than depth in non-food, all under one roof. Already successful in the UK and other countries, they plan to expand worldwide to 120 of these hypermarket-style operations that concentrate on a bigger non-food offering than superstores.
Their in-store roles are just the same as in their superstores, and in the central support office, Extra stores have their own specific marketing and commercial managers to cover the format, as well as regional support teams.
With the wide range of non-food products and groundbreaking initiatives in Extras, their specialisms in non-food capability and rollout planning are crucial to the success of these giant stores and they especially value people with appropriate experience.
Store teams work under the guidance of Stores Directors, ensuring operational excellence and strong financial performance. Regional Development Support teams provide support and guidance on HR matters and other specialist teams advise on trading and marketing.
Experienced senior manager appointments and their focus on developing their people ensure that a wealth of retail experience is coached into every team member, so that everyone can deliver superb value and service to their customers.
Metro brings grocery shopping back to the high street. It's a modern-day version of the convenience store, brought bang up to date, offering customers yet more choice where they need it. Currently, there are 41 Metro stores, with more developments planned.
Dedicated retailers who want big company benefits but prefer a small-store environment where they can build customer relations need look no further than Metro.
There are lots of opportunities within the format - and it's a great place to help you to move elsewhere within the business, too.
They have got opportunities for Store Managers, Senior Team Managers, Section Managers and General Assistants.
Tesco has 277 large and 81 compact Superstores around the UK, as well as 224 other supermarkets. Many trade 24 hours a day and all have a sharp customer focus. Each offers a large food range, and many have great non-food ranges too. Superstores by their nature tend to be large and on the edge of town, with free parking and facilities that include cafés and petrol stations. They're a key element of Tesco, used mostly by customers wanting big, trolley-based family shopping.
Each Superstore has a Store Manager in charge. His or her role covers both operational effectiveness and team leadership - after all, they'll have several hundred people under their wing!
Because of the diversity in each store, they always need Section Managers for areas such as fresh food, produce, deli, dairy, bakery, café and stock control; and Non-Food Managers to supervise and motivate staff in everything from clothing to cook shops. Every Superstore also employs Customer Service Managers, Personnel Managers and experienced specialists in a number of other areas to ensure that the whole operation runs smoothly right round the clock. Fundamental to that smooth running are our General Assistants, right at the front-line of customer service. They have naturally always interested in hearing from anyone who'd like to take on one of these vital roles.
Stores
There are three major parts to this programme, with a review after each to ensure you've met your targets, and are ready to progress to the next stage. If you want to go into Store Personnel Management, you'll progress through a specially designed training programme. Following the same duration and structure as the Store Management Programme, it combines a thorough introduction to the latest HR techniques with a specialist perspective on the issues affecting our core business.
Months 1 to 9 - Foundation training
At this stage you'll lay the foundations for your future, gaining a thorough grounding in how our stores operate. You'll spend six months learning and developing the specific skills needed to become an effective Section Manager of one particular area - either grocery, fresh products, checkouts or pricing/legality, while Personnel trainees will assume the role of Training Manager. Along the way there'll be three-week placements in each of the other areas, to give you the breadth of experience you'll need later on.
Months 9 to 15 - Practical experience
You'll have now acquired a whole new set of skills, and will be keen to apply them. You'll do so by taking on full responsibility for running a department, which might be fresh produce, bakery, deli counters or even the in-store Internet café. Again, Personnel trainees will act as Training Manager. This is a live job, and the pace really steps up at this point, with targets and performance indicators giving you the chance to measure your success in concrete terms. You'll focus in particular on sales figures, staff training and service levels.
Months 15 to 24 - Preparing for senior management
Now it's back to training as you prepare for your first position as a Senior Manager. Shadowing and learning from an existing Senior Manager, you'll assimilate all the skills you need in order to take on their role in another store. The timing of this stage is flexible, as some people are ready sooner than others, but it will last from around three to nine months.
Tesco has four store formats: Express, Extra, Metro and Superstore. Each is designed to meet the increasingly varied lifestyles of the customers we serve, and all offer a friendly, positive and very supportive team environment, where training is key.
They believe in the continuous development of their people and ensure everyone is equipped with the skills needed in their role. They also make sure everyone gains a good overall knowledge of retailing - an invaluable asset that stands you in good stead should you move into other areas of the business.
Whichever store format you're interested in, you'll need broadly similar skills and qualities:
If you're starting your career, the most important aspects are flexibility, a passion for customer service and the ability to work well in a team.
Management roles place greater demands but also offer far greater responsibility.
Sales Staff
Those staff working on the shop floor have the responsibility of ensuring shelves are restocked, keeping the place looking tidying etc. As part of the sales staff training they are taught the SOS motto ‘ say hello, offer advice, say goodbye’.
Information Desk Staff
These employees are specifically trained to know how to deal with customers properly giving them a good impression of the company, as they are the employees who are in main contact with the general public dealing with any enquires of problems customers may have.
Section Managers
Section managers are similar to the sales staff in their approach to customers. Section managers have the responsibility of being able to handle complaints that sales staffs don’t know usually technical questions. For example, manage and motivate a team so that their department delivers the high standards of quality and service our customers expect. A Section Manager could typically manage more than one department, including grocery, wines and spirits, produce, bakery, frozen foods and non-food.
Senior Team Managers
Oversee a complete section of the store, such as fresh foods trading or customer service, which involves managing a team of section managers.
And both Section and Team Manager roles offer the possibility of acting as Duty Manager - effectively, running the whole store.
Till Staff
This is sometimes the last contact the customer has with the store, and therefore should be a pleasant experience. Tesco do this by having helpful, not rude or impatient employees.
Security Staff
These employees are the first and last contacts the customers have with the store therefore need to ensure the customer feels safe in the store. Unlike Tesco in Marks and Spencer’s security staff parole the store. Security staff should also receive training in customer care.
Cleaners
Unlike Marks & Spencer’s cleaners is not third party. Cleaners pay an important roll in Tesco for the Health and Safety of the customers. If a breakage or spillages occurs its important cleaners are they’re to deal with it promptly especially where glass of dangerous substances have been dropped and young children are in the store.
Café Staff
Customers want a pleasant service having refreshments after their shopping. The area should be kept clean and that food is properly cooked. Stock levels should be maintained.
2(c) Assess the extent to which each organization meets its objectives in customer care.
As an organisation grows the importance for good customer services grows with it. One of the first things a large organisation looks into is how to improve relations with the customers. Organisations have come to realise that if they are not giving the customer what they want there are plenty of competitors who will. Hence Tesco’s customer care promise.
Tesco dedicate a lot of time to training staff in "First Class Skills" so that customers receive the best care possible. Tesco’s are seen as one of the most highly customer orientated organisations in the United Kingdom and this can be seen through the rewards that they have received over the last several years. Already they have developed their own web site that is rapidly expanding into all areas including home shopping over the internet. This is another possible expansion of the Tesco web site, to cater for customers by giving them an interactive on-line service for any views or complaints that they wish to express.
For this reason it was decided that for this project they would establish the needs of Tesco’s customer care department and design a web site to meet their needs. They would then analyse their results and decide whether or not the final design fulfilled their requirements.
In order to fulfill the aim of the project, it was necessary to conduct several different areas of research. Their field research was undertaken by firstly having a meeting with a Customer Care Manager of Tesco's and secondly from a questionnaire for Tesco customers.
In order to design the website to be user friendly we devised a questionnaire for those who would be using it, the customers. We distributed questionnaires at four Tesco stores, two in Belfast, one in Lisburn and one in Lurgan. We found the results of the questionnaires to be very informative.
Tesco discovered that many customers prefer not to make a complaint as they were either too shy or they felt intimidated and didn't want to create a fuss. One customer said: " I've had a few problems in this store but didn't want to say anything because I'd have to come back every week and face the same workers."
When Tesco were starting out trying to decide what project they would embark on, they realised that they were all interested in, "Surfing the web," so they agreed that they would design a website. They decided that they would develop a website for them, because data collection would be a little easier and they would already have a slight insight into their organisational goals and workings.
At the beginning it became very clear how competitive this particular industry was and how important customer relations and customer care are in order to stay ahead of your rivals. In order to supplement Tesco's customer care and their own existing website, they decided to design a website for customers to air their complaints regarding any problems they had encountered in a Tesco’s store or once they had left a store.
So, in designing their website they had to incorporate the needs of Tesco and it's customers. To find out these needs they conducted customer surveys, using questionnaires at four separate branches of Tesco and also spoke to Mr Dunbar who is in charge of Tesco's customer care department.
They found that 64% of the customers that they interviewed had at some stage encountered a problem in a Tesco store. Of these people 85% said that they had not reported the problem, saying "didn't want to make a fuss," or "too shy," "best to leave things alone," "couldn't be bothered." Of those who had complained 65% said that they felt intimidated or self-conscious in doing so. 93% said that they would be much more likely to complain if they didn't have to do it face-to-face. Some suggestions from customers of what would be helpful to the website were, easy to follow instructions, ease of use and speed of use. From this it seemed clear that a simple and quick to use complaint form on the web would be welcomed by customers by removing hassle and by removing face-to-face contact with the person whom you are complaining to. Tesco's needs were similar because they want the best for their customers, but also by grouping complaints they felt that they could deal with problem areas which received more complaints in a more effective manner. Tesco also added that they would like a website which was pleasing to the eye, to attract more users and to make customers feel more comfortable using it. It is our opinion and that too of Mr Dunbar that our website is pleasing to the eye and certainly meets this particular objective.
Of course with more sophisticated software and more time the website could be much, much better, but this was well beyond their means. A continuation of this project could use their initial work and develop it, by developing, expanding and generally improving the website to meet even further needs of both customers and organisation. This could be done by using more advanced technical equipment and by expanding the questionnaires given to both Tesco and it's customers, to obtain further recommendations of what they would like to see incorporated in the site and how to improve it in general.
This is all well and good but there still remains the same problems with websites, a lot of people do not have any idea how to use the world-wide web, some won't use it because of a lack of confidence and of course there is a lack of access to on-line computers. Surprisingly, in their survey we found that 78% of those interviewed had access to the Internet, which they felt was quite high. The access though, was not direct in all cases e.g. some people's children, grandchildren, neighbours etc. gave them access, but this access was not actually readily available in their own homes. This could prove to be a major drawback to the site at present with a lack of use, but it is still better to have it now to get the edge over competitors, however slight, and in the very near future it is expected that almost everyone will have direct access to the internet. This problem highlights the need of organisations such as Tesco to make people more aware of their websites and the enormous benefits and additional services which customers using them can receive.
Another drawback of the project is that at the moment it is highly theoretical and they can only base their conclusions on whether or not they feel that the website meets the needs of Tesco and it's customers according to questionnaires answered by a tiny fraction of Tesco's customer base. To actually see how well they have met their objectives, the site would need to be put into practice for at least a few months, in order to get a better idea of how the site was doing. After this time it would be possible to see, whether or not people were actually using the site, if so, was it user friendly enough for customers with little or no computer experience to use, was it helping to target specific problem areas, was it leading to improvements in these problem areas, and so on. Overall they want to see, has Tesco's customer care and customer service improved as a result of the use of their website.
The site could prove to be advantageous or disadvantageous to staff, depending on their attitudes, their current level of morale, how their management address the idea and so on. Morale could be dented, as more complaints come in. Staff may feel they are being unfairly criticised and that there is no need for another way for customers to complain. It may be seen as Tesco not having faith in them and staff may feel intimidated by the risk of being singled out (the staff member's name is asked for on the complaint form). Of course the site could boost morale by making staff come together to overcome the constructive criticism and they may gain more job satisfaction by knowing that they are making a difference to the customer
Overall, they are very pleased with their website and how they managed to overcome the technical difficulties that they encountered in establishing it. They feel that it certainly meets the objectives that they set out at the beginning, but there is some scope for improvement and expansion, without question.
There is assistance to every customer that asks. Mother and baby changing rooms, baby club for expecting mothers, there are also assisted shopping for customers with special needs eg disabled, elderly wheelchairs etc. This is important for a high standard of customer service, to meet all customers’ needs. Other customers may appreciate the fact that they are on their own and prefer to be treated individually rather than grouped together with others.
Tesco have a range of products, which reflect ethnic backgrounds in the UK. Cultural backgrounds influences people’s traditions, tastes, preferences and opinions and therefore will have an impact on level of service that people need and expect for example Jews and Muslims wont eat pork they believe its unclean. The staff employed also reflects backgrounds.
In Ireland, Scotland and Wales there are multilingual signs as well as sub continent signs in India for tourists etc. This is part of effective customer service so that customers from all countries can shop in Tesco. It also leads to an increase in sales.
Customers expect to be able to find their way around the store easily and not have to spend valuable time trying to locate a particular product. Tesco have signs above each aisle to clearly mark where specific products are. Bigger stores have store guides either a person or map. As part of a legal requirement Tesco have to make sure the price advertised is the price charged. There is price verification on every product to check price is correct. This is done through a rolling system.
If customers attempt to purchase a product but are having difficulty deciding between two or three similar products they expect the staff to give them impartial and objective advice as to which product would best meet their needs. Tesco deal with each customer individually and equally.
Task 3 (a) Identify and explain the main needs of the customers of each organization.
Different categories of customer’s require customer service. Tesco have special arrangements in place to deal with these different categories. To provide a high customer service Tesco need to understand the needs of customers and how they contribute to the satisfaction of these needs through excellent customer service.
The needs of the customer include:
- Safety and Security
- Clear and Accurate Information
- Expecting their consumer rights to be upheld
- Impartiality and objectivity
- Complaint and enquiry, and suggestion procedures
- Special Needs
- Ethical Standards
Safety and Security
Tesco provide security not only to their staff who shop in store but also to those shopping over the Internet.
Shoppers on the Internet are protected by the same consumer protection measures available to all customers. There is no opportunity for direct examination of a product prior to purchase, however, so sufficient information must be provided to allow an informed decision over a purchase. It is vital that customers can access the Terms and Conditions of any transaction they decide to undertake, and we currently provide the facility for customers to view these. If customers are forced to go through numerous pages of terms and conditions before making a purchase, trade drops significantly, so while we support the information being fully accessible, we would not want this practice to become any more restrictive.
The safety and security are a priority to efficient customer service, as part of a legal requirement staff has safety training, which is updated every six months. Employees are validated every six months with basic security measure and fire drills. There are security personnel in every store. Customers do not see safety and security as a big issue when they are deciding where to shop though if a shelf of tinned cans fell on them as they pass along the aisle they are likely to take their business elsewhere. There is a risk assessment in every store every month to ensure there is no dangerous shelving etc
Tesco allows other retailers to link their websites to our website. These retailers tend to be smaller retailers who benefit from the volume of traffic to the Tesco site. Customers are informed that any transaction they conduct with another retailer is a contract with that organisation and not with Tesco. Any subsequent customer service issues must therefore be resolved with that retailer. Tesco reserves the right to delete any retailer from our website in the event of unacceptable customer service practices. However, since we would not want the responsibility for monitoring their practices, we would not be able to facilitate access to other retailers if it were proscribed that we are liable for their transactions or conduct.
The UK's biggest retailer will spearhead a new publicity campaign featuring runaway or missing children in the hope that they can be found and returned to safety. Starting today posters will go up in over 700 Tesco stores around the country appealing for information on some of the thousands of youngsters who have been missing for many months.
Clear and Accurate Information
Customers expect to be able to find their way around the store easily and not have to spend valuable time trying to locate a particular product. Tesco have signs above each aisle to clearly mark where specific products are. Bigger stores have store guides either a person or map. As part of a legal requirement Tesco have to make sure the price advertised is the price charged. There is price verification on every product to check price is correct. This is done through a rolling system.
Expecting their consumer rights to be upheld
To ensure the rights of every customer is upheld Tesco work in tandem with trading standards department. They have their own legal department in head office to verify all information to customers. Customers don’t expect to go into a store and be ripped off or unable to return a good purchased. Tesco have a refund policy, which covers every eventuality e.g. electric goods over 28 days without receipts. If a customer is not happy with any product it can be returned within 28 days with receipt used to a no quibble guarantee.
Special needs
In Ireland, Scotland and Wales there are multilingual signs as well as sub continent signs in India for tourists etc. This is part of effective customer service so that customers from all countries can shop in Tesco. It also leads to an increase in sales.
For people with special needs there is a loop at various checkouts in store, scanners for checking prices in Knocknagoney store. This could be introduced to all stores. Some staff learn sign language if they want to its not compulsory. All stores are equipped with standard wheelchairs. A talking magazine for customers with sight deficiency. Tesco see an Elsmere group to see what requirements they have when shopping. There are also special trolleys designed for young mothers with triplets. Tesco try and provide a service for everyone’s needs.
Ethical Standards
Tesco’s is Britain’s leading food retailer and has gained this position in the market throw giving good value and services to the customer. Even though they are this successful they still are committed to their principles and values. This is shown by the fact that since 1997 the company has been at the top of the “Christian Aid league table for ethical commandments.”
For Tesco’s to keep this top spot as the leading successful retailer, it has to take in to consideration the concerns of each sector of the community; such as its customers, staff, shareholders, supplies and the local people who live close by. All of these have ideas they want to see happen and so Tesco has to meet as many of these, which are practical.
Tesco have a range of products, which reflect ethnic backgrounds in the UK. Cultural backgrounds influences people’s traditions, tastes, preferences and opinions and therefore will have an impact on level of service that people need and expect for example Jews and Muslims wont eat pork they believe its unclean. The staff employed also reflects on these backgrounds.
3(b) Illustrate how customer enquiries, complaints and suggestions are handled
It is important that Tesco have good communication with their customers and understand how to deal with customers. They need to be able to recognise a wide range of verbal and non-verbal communication methods when dealing with their customers.
When a complaint is made Tesco try and resolve the issue with the customer face to face at the time of the problem so as customers are satisfied with the way their complaint has been handled and will go away happy. This is not the case all the time some customers will not leave the store satisfied but Tesco try and ensure they do as many times as possible.
Complaints Procedure for a Tesco Loan
‘Our promise to you is that we will always be fair and reasonable whenever you need the protection of this policy and that we will act as quickly to provide that protection. If you ever feel that we have not kept our promise, please call us or alternatively, write to the Customer Liaison Unit, UK Insurance Limited, The Wharf, Neville Street, Leeds, LS1 4AZ. Our staff will attempt to resolve your complaint immediately. If this is not possible, we promise to acknowledge your complaint within 5 business days of receipt. We will then endeavour to resolve your complaint as quickly as possible. If we are unable to do so within 4 weeks, we will write and let you know the reasons why and the further action we will take. If we cannot resolve the differences between us, we will issue a final response letter. If you are still dissatisfied, you may refer your complaint to The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR, or telephone 0845 080 1800.’
Tesco use the telephone to provide part of their customer service. With good telephone skills, it is usually possible to meet the standard of service the customer expects. Tesco will deal with enquiries over the telephone but try to avoid dealing with complaints.
In writing Tesco follow up issues raised or to confirm deliveries etc they don’t use written communication as a main means of contacting their customers.
The Internet is used to give advice and information over the web site and a home shopping service is offered to meet the needs of specific customers. Careers are also advertised through the website showing qualifications needed and salaries paid.
The Internet has the advantage that customers can be worldwide and with the aid of credit card payment goods can be received by customers within a matter of days.
3(c) Analyse how effectively customer needs are catered for by each organisation
There is a need for Tesco to have procedures to handle customer needs, these procedures are:
In the UK some 90% of households have access to Tesco home shopping and it’s already the worlds number one on-line grocer. There cooperate website allows there customers to register online and shop for goods. It also allows them to check out special offers and find out information about the company. The website allows customers to e-mail the customer service department about enquires, information and what the customers want. They try there best to reply back to their e-mails, but they get hundreds a day and cannot reply back to all of them. Customers also can communicate with the customer service by phoning them for enquires, but the lines are always busy. Tesco writes to its clubcard customers informing them of any special offers and information. Tesco have a very good communication link with their customer that helps them to meet the changing needs of their customers and meet their objectives.
Tesco uses Electronic Mail the most frequent way of communicating with their suppliers. This allows them to order for goods by using the Internet and the goods are arrived quicker.
It is also important that employees know how to communicate with their customers.
Investigating the issues raised
All complaints are investigated. Tesco have a standard routine when dealing with these complaints. Each customer is treated in the same way however if its serious and an issue which staff in the store cannot deal with the complaint will be sent to head office.
Taking Action
Once a complaint has been made, Tesco take the certain procedures:
- Correspond with the customer by phone or mail
- Offer the customer a refund depending on the nature of the complaint
- Off the customer a coupon or money off vouchers
Staffing
As like Marks and Spencer’s staffing will change due to seasonal variations and demand projected forecast. The targets of sales also determines the level of staffing needed e.g. Christmas.
Monitoring the quality of customer service
Tesco is always trying to improve its value for money offer based on shoppers’ perceptions of all aspects of the shopping experience – price, quality, range and service.
The quality of service is usually monitored through the mystery shopper reports every four weeks, customer surveys and comment cards. This information can then be used to better meet the customer service offered.
The legal dimension
Tesco abide by all legal policies. The staff working each day are recorded in a book encase of a fire. All areas of the store have to be kept clean, all products have to have price tags below them - sometimes if a product is out of stock a label is placed over the price to inform the customers, though a problem is raised when the shelves have been restocked but the labels not removed, this shows a lack in good customer service.
Task 3(d) Evaluate and compare each organisation’s performance in meeting its customers’ needs.
In order for Marks & Spencer’s and Tesco to provide a high customer service they need to understand how to contribute to the satisfaction to these needs through excellent customer service. The needs of customers include:
Safety and security
A customer wants to feel safe when there shopping e.g. a shelve of cans wont fall on top of them. Both organisations provide this quite well, shoppers feel safe due to the security safe etc. Employees in both organisations are aware of the health and safety procedures required. There are also regular fire drills. A downside to both organisations is neither of them has sprinkler systems, encase of a fire all there stock would be ruined. In Marks & Spencer’s they state they go beyond the minimum legal requirements to ensure the safety of their customers and employees.
Clear and Accurate Information
Marks & Spencer’s provide clear and more accurate information to their customers than Tesco. All Marks & Spencer’s products are individually priced and more detailed information is given on food products. Both stores carry out pricing strategies to make sure the prices they are charging are correct.
Expecting their customer’s rights to be upheld
Employees in both organisations are trained to maintain a clear refund policy at all times. The training ranges from hygiene standards to ethnical production practices.
Complaint, enquiry and suggestion procedures
In both Marks & Spencer and Tesco employees are trained to deal with basic complaints, if the complaint has a serious nature and employees cannot deal with it, head office is used to solve the problem.
Ethical standards
Both organisations have clear standards. There was recent bad publicity by one of Marks & Spencer’s suppliers, meaning that Marks & Spencer’s suffered even though it wasn’t their fault. Desmond’s shirt makers were accused of sourcing cheap labour giving Marks & Spencer’s a bad reputation. Both companies need to ensure that their suppliers meet the same high standards as they do.
4(a) Identify and describe the ways in which the organisation monitors and assesses the quality of customer service. 4(b) Analyse how effectively each organisation monitors and assesses the quality of customer service offered
Tesco has a wide of operation and wants every one to buy their products. These is though as it is normally people who have moved out of their parent’s home and have accommodation of their own. Tesco’s aim is to get full time loyalty from their customers and to carry on increasing the value of their goods for the customers. They want to under stand and respect their customers better than other supermarket chains. Their staff is very important to them so they aim to please their staff for Tesco’s values and also to realise their large contributions in to Tesco’s empire. To increase life for customers Tesco’s are all ways ready to take sensible risks to improve this. They also want to make life better and customers shopping experience more enjoyable in no way other competitive company scan, they will do this through using there bring people who work for them and also using technology, intelligence and sales this all should help increase better value. Tesco have also introduced a range of financial services this was started in 1997. This includes newly started pensions, investment schemes, insurance and credit cards.
Tesco continually assess and monitor the quality of customer service they provide. They do this to ensure their services are meeting the needs of their customers.
It is important that customers always receive the same level of service so that they are not disappointed that it does not meet their expectations. Each week Tesco have health checks and watch workers to see how they are reacting to customers.
Mystery shoppers are used and report back to the store every four weeks to give feedback on the whole shopping experience.
Once a week Tesco will walk round a store with a customer asking what they like, dislike and would improve. This feedback can then be used to better meet the customers needs.
What is the core purpose of Tesco?
Their core purpose is to create value for customers to earn their lifetime loyalty.
Values
No one tries harder for customers:
- Understand customers better than anyone
- Be energetic, be innovative and be first for customers
- Use our strengths to deliver unbeatable value to our customers
- Look after our people so they can look after our customers
Treat people how we like to be treated:
- All retailers, there's one team...The Tesco Team
- Trust and respect each other
- Strive to do our best
- Give support to each other and praise more than criticise
- Ask more than tell and share knowledge so that it can be used
- Enjoy work, celebrate success and learn from experience
What is the commitment Tesco has to its customers?
Tesco customers want the best possible value for their money. Tesco is determined to offer its customer’s quality products, good service, attractive stores and low prices.
To meet these aims, Tesco:
- Works closely with suppliers to ensure products are of the highest quality and are delivered to stores in the best possible condition.
- Makes sure that its staff is committed to giving the best possible quality of service.
- Aims to create in its stores an environment that makes shopping easy, interesting and comfortable.
Latest Innovations
Tesco seeks to introduce new innovations in all areas of its business. The retail grocery market is intensely competitive and no serious contender can afford to rest on its past achievements. This has encouraged Tesco to pioneer many new ideas. By listening and responding to customer needs, Tesco will continue to bring in new ideas and services. Its most recent ventures include financial services with the Royal Bank of Scotland and Home Shopping. Many people today are working longer hours and do not want to spend part of their leisure time food shopping. To help people save time, Tesco has introduced Home Shopping, a service that makes use of information technology so that people can do their shopping via the Internet from their home computer. Tesco was also the first grocery retailer to launch a loyalty card. Clubcard has brought Tesco closer to its customers and at the heart of the programme is one of the most sophisticated customer databases in Europe.
In today's competitive business climate, retailers often engage in ruthless price wars in order to attract custom and consumers are bombarded on an almost daily basis with leaflets, mailings, local and national newspaper ads and billboard posters comparing their local high street retailer's product prices with those of a leading competitor or competitors
Customers expect value for money and will be disappointed if the price charged does not meet their expectations. Tesco have price comparisons with other stores. Market research is also used to see where customers are willing to pay more for certain brands of products e.g. customers expect Tesco brand to be cheaper than Kellogg’s brand. SWOT analysis is carried out for each store, to see where improvements can be made.
The importance of customer retention is a vital part of customer service club-cards; special offers and seasonal activities are all used to ensure this.
Loyalty or club cards are also a form of promotion and were first tested in the October of 1993 but when on national release in the same month of 1995.This has brought the shopper closer to Tescos. The points are earned from shopping trips and slowly are a cumulated so after a while the customer will have many these are then processed and turned in to money off vouchers which can be spent throw any of Tesco’s stores. This is so run as a promotion to enough people who would normally shop at other rival stores to use Tesco, as they will receive money off for the more money that is spent there. This again is promoting their name a company who rewards the shopper who are loyal to them. This throw does not always work as many shoppers will have loyalty cards at many shops so they receive bonuses from not just shopping at one store, this in all is anther way Tesco aims to get more people shopping at their stores.
The mystery shopper report and comment cards are used to see if the store is reliable e.g. customers are going to receive the same experience every time they visit the store. Therefore they can be confident that it will provide value for money, be enjoyable and ensure excellent staffing levels.
Tesco set standards for their staffing levels, e.g. if there is more than two in a queue they will put someone else on the checkouts. A productivity index shows if the number of staff are meeting the sales made. During seasonal periods Tesco employ seasonal staff to ensure that customer needs are still being met and they don’t experience a poor service due to a busy store and not enough employees.
To research if customers enjoy their experience in the store Tesco provide comment cards behind each counter, suggestion boxes at the exit or asking a customer personally how they felt about the experience in the store.
Health and Safety group and store management meet every three months or near to an accident and try to improve the situation. Tesco work closely with the environmental health department giving them a good image of being an environmentally friendly company and leading to an increase in sales. They have comprehensive staff training for health and safety.
Cleanliness and hygiene links with the Health and Safety. The environmental health department will tell Tesco what the expectations are and each department knows their responsibilities.
The fresh produce industry places the very highest priority in ensuring that its products will not present consumers with any hazard to their health and that they are produced in an environmentally sensitive manner. The contribution of the FPC towards this objective is reflected in the following publications:
"Fresh Nutritious and Safe: a guide to the production of safe food"
This publication introduces the concepts of Integrated Crop Management and Risk Analysis and provides growers, packers, importers and independent retailers with key action points relating to the production of safe food. It also places into context the FPC publications dealing with pesticides, hygiene and microbial hazards, the principle food safety hazards the produce industry must control.
"The Control of Pesticides: a code of practice"
This publication gives detailed guidance on how pesticides should be controlled and is now the accepted industry standard to which all businesses operate. It is a standard that not only meets due diligence requirements under the Food Safety Act but is also intended to provide reassurance to consumers that the produce they have purchased is both safe and legal. * "Overseas Agrochemical Approval: a code of practice" This publication aims to establish a consistent approach to the problem of insufficiently developed agrochemical approval schemes in countries where produce, intended for export to the UK, is grown.
"A guide to good hygiene practice for the produce industry"
This code of compliance gives guidance on the standards the produce industry should adopt in the area of good hygiene practice. It was developed as a collaborative exercise between all sectors of the industry, the Department of Health and LACOTS in accordance with the EU Directive on the Hygiene of Foodstuffs.
"The Control of Microbial Hazards: a produce industry guide"
This guide addresses the microbial food safety hazards and good agricultural practices associated with water quality, the use of manure, hygiene and traceability common to the growing and harvesting of produce.
"Returnable Transit Packaging: a code of practice"
This code of practice, based upon HACCP principles, establishes procedures that will ensure that the operation of each traywash unit will wash returnable transit packaging to consistently high standards of cleanliness and hygiene. The FPC Code of Practice on the Control of Pesticides has been integrated into the UK's Assured Produce Scheme, a NFU/Retailer initiative that is fully supported by the FPC.
Training
The FPC aims, through a structured training programme, to assist with the personal development of all those employed within the produce industry. To fulfill this objective a range of training courses at different levels has been developed:
Junior management
A competence based programme for wholesalers and retailers equivalent to a NVQ at levels 1 and 2 has been developed. Currently all ASDA produce staff are participating in an FPC programme, Tesco are using the FPC standards for their own internal training, Sainsbury's Supermarkets are now working with the FPC to develop their own training programme and a report has been prepared for Waitrose on their training requirements.
Middle management
A general management course, called 1st Tuesdays, is run each year. It requires participants to attend on the 1st Tuesday of each month during a ten-month period. By the end of 1999 over 100 managers will have attended this course.
Senior management
This residential course is a joint initiative between the Worshipful Company of Fruiterers, Wye College and the FPC. It was launched in 1998 and is targeted at middle managers in growing, marketing and distribution that are on-track to run their own businesses or become senior executives of companies and future industry leaders. The first two successful courses were completed in 1998.
Tesco make is as easy and straightforward for customers to buy a product by making it as accessible for everyone e.g. wheelchair ramps, lifts etc and taking thought into those that are disabled or have special needs. This is very important when dealing with customer service, as everyone is a customer in the eyes of Tesco.
If these standards are not met a list is produced and the store manager ensure the steps take place.
There are no changes needed to be made in store for the foreseeable future - an audit took place a year ago and Tesco got the green light, this take place periodically.
Regular feedback from customers allows Tesco to assess their customer service. To do this they use the following techniques.
Comment cards kept behind the checkout, which allow customers to give their opinion on the service. If a customer wants a response they can give their name, address and telephone number and Tesco will get back to them.
Surveys are given to customers at random to ask did they get the service they required. It takes no longer than three minutes to complete.
Customer panels are used from time to time. Head office visits an area and invites club cardholders to a local hotel to get feedback. This gives Tesco the advantage of collecting very detailed information because customers can explain their feelings and opinions in depth.
Task 5 Make recommendations for enhancing the quality of customer service in each organisation
Tesco’s own brand is considered of a very poor quality, its classified as cheap. They may consider having their own brands sectioned off in the store like their alcoholic beverages, though some customers may feel self-conscious going into it and may try to avoid it. This could work as an advantage or a disadvantage for Tesco; they may wish to try it out first before just diving in.
I have included a quote from someone who shops in Tesco and what they think about Tesco’s own brand, this may go against what I said about shopping in their own section if they had one:
“I try to avoid buying brand named products as much as possible. I don't generally believe that the more you pay the better the product, as I think often you pay a premium for the name and not for the product itself. So when I do my weekly shopping, I tend to put mostly shop's own products (Tesco in my case) into the trolley.”
A large proportion of employees are part-time therefore don’t have the same product knowledge as Marks and Spencer’s who tend to employee more full time staff rather than part time. Tesco may consider better training facilities and rotate the hours more for full time staff. This could work out best for Tesco in the long run however they may need to spend more on labour.
Assisting elderly people with shopping for example offering elderly people assistance with carrying their bags etc. Tesco could do this on a day were they aren’t so busy e.g. a Thursday morning each elderly person could have a member of staff to assist them with their shopping, this will also benefit Tesco as it will increase their sales and employees.
Tesco could use scanners in all their stores to speed up checkouts meaning customers will scan all their own food and just pay at checkouts; this would be an advantage to customer service.
24 hr shopping in Tesco has been very beneficial due to the rise on profits. Some customers prefer to shop later at night when the store isn’t as busy, though outside normal working hours Tesco restock shelves for the next day. This can be very disruptive to customers as some shelves may not of been restocked and have limited stock on shelves.