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Providing a helpful and friendly customer service is the lifeblood of the company as it is not only important to selling the product or services but also to help to build customer loyalty. If the company provide the customer service in the right way they can gain competitive advantages.
In this few year the quality and level of customer service of Tesco is decreasing and getting complain from the customer and customer loyalty is decreasing because lack of understanding at the executive and middle management levels of a customer service policy. As we know that customer service of Tesco is provided by sales representative and automated which is online service.
Therefore, Tesco need to improve their customer service quality to enhance the company's competitive edge. That means Tesco need to focus primarily on the action of their employees rather than those of their customers because the importance of front-line service employees and customers services is important in creating customers satisfaction (Rasiah & Tan, 2010). They need to understand their customer, product and their service quality by establish customer feedback because by evaluating customer feedback it can help to improve business process and better customer experience.
Tesco can use the feed back performance relationship theories such as behavioural, social cognitive, control, goal setting theory and efficacy theory that had succeed in commercial Banks industry (Rasiah & Tan, 2010). The behavioural theory is the feedback will let the employees know the consequence of their act. For example, front-line employee who is polite to the customer will get a positive feedback from the customer and will get praise and reward but employees who are rude will get negative feedback and will get warning letter from employer. So, employees will motivate to increase their performance in order to get reward or future opportunities.
Furthermore, self efficacy theory and goal theory is related to the employee self expectation of their performance. Where the customer feedback of their performance have impact and directly influence the individual goal, whether to set higher goal or to improve to achieve their current goal. Lastly, control theory is for employee look at the customer feedback as a way to maintain their performances that match the organization standards. As customer service is an intangible product so the customer service employees need to improve their performance by using the feed back performance relationship theories to compare and create a framework of the relationship between their service and customer satisfaction.
Customers who visit the Tesco physical store or Tesco.com are demonstrating a certain level of trust and expectation toward the organization. So, when they encounter problem and contact the customer service, they are expecting the employees of the organization able to help them and resolve their issues. In other word, the employee should have the skill in resolving their issues and not confusing the customer this will then increase their trust and loyalty if not the customer will not do their shopping at your organization anymore. Hence, Tesco should improve their employee knowledge of their organization product, service and policy so they can handle customer problem and enquiry quickly by organize training program for all employees where the Tesco services of quality can be emphasized (Seybold, 2001).
In others hand, Tesco can build an infrastructure which allow the customer service employee to get in touch with the customer that are around the complain resolution. This infrastructure ease the customer to call in with complains and problem directly to the customer service employees where the employees have the ability to identify and resolving complain and problem quickly as soon as they communicate with them. While for the customer feedback, complain, problem and enquiry via online the system will send e-mail automatically to the customer service employees to allow them to take appropriate action such as call the customer expressing their concern after they provided feedback. This will increase customer level of trust, satisfaction and loyalty as they feel that the organization valued them.
Besides that, Tesco should ensure all the shelves are full because failure to ensure shelves are full will kill the organization. For example, Kmart Corporation have planning error that the organization crippling its ability it match the price offered by Wal-Mart, the worse is when the organization able to lure back the customer but the supply chain not able to deliver and provide stock to them in time. Due to the wrong forecast and planning Kmart is now bankrupt (Konicki, 2002).
Indeed, to ensure shelves were full is the biggest problem encounter by many supermarkets but they can solve it by improving their forecast of demand of product and supply chain technology. By mastering supply chain technology and improving supply chain management Tesco will able to build a supply chain planning and manage the demand of stock effectively. For example, SABMiller, the global brewing giant has revamped it supply chain management system (Goodwin, 2009). The company rework it supply chain to reduce their stock out cause by it efficiency supply chain management. SABMiller has used the advance supply chain management system that allow the company to collect information from their resource planning system and financial system to generate useful information for production schedules, raw material orders and financial forecast to increase their flexibility to meet changes in demand(McGettrick, Sewell & Sivills, nd).
Adopting new software will help them to improve their shipment on date as promised. Therefore, employees will able them to manage processes such as stock returns, promotional activity, merchandising queries, claims for returns and increase their customer service quality.
In addition, it also can improve the transparency management process, both at wholesale supplier level and in-store. Not only that, they might also able to save time checking stock returns , therefore employees have more time to ensure the shelves are fully stocked .
In 2009, Tesco had started a website store that allow customer to order online and Tesco employee will deliver the grocery to customer within 2 hour. Some customer had complained about their website because their website is not user friendly and it wastes few hours to complete a purchase. Thus, organization that running an ecommerce website should have an user friendly website that allow the customer to browse, select and do payment easily is the key part of your current website can provide you that edge (Walsh,nd)
Ecommerce store website is a very successful way gain competitive advantage but the competition is critical. Therefore, Tesco employees should guide customer how complete a purchase online such as search for product, add product to cart and payment method at their physical store and revamp their website such as update their catalogue regularly, include a plug-in in the webpage like blogging that will allow their customer to comment and ask question easy and include a search browser on Tesco homepage that allow the customer to browse the product they need so reduce the browsing time.