Research Topic: critically analyze the impact CRM (Customer Relationship Management) on customer retention in UK retail sector. A case study of Tesco in the London Area.
Table of Contents
1.1 Research Background.
1.2 Aims, objectives and research questions.
1.3 Justification of the research.
1.4 Importance of the research.
1.5 What is the next
2.0 Literature Review.
2.2 CRM (Customer Relationship Management)
2.3 Impact of CRM on customer retention.
2.4 Conceptual framework.
2.5 What is the next
3.0 Research methodologies.
3.2 Research Design.
3.3 Data sources.
3.4 Data collection method.
3.5 Sampling Method.
3.6 Data analysis and presentation techniques.
3.7 Ethical issues.
3.8 Research Limitations.
4.0 Structure of the dissertation.
4.1 Research Timetable.
This chapter gives an overview of the proposed research works. The research background is outlined first in this chapter, which is followed by research aims and objectives with research questions. Then, the research justification and significance of research are discussed, which followed the next chapter focusing on the literature review on the research topic.
1.1 Research Background
Customer relationship management is one of the effective methods for building long time relationships with customers (Berry et al., 2013). Organization, mainly retails industry, have been considering this concept deeply to promote their products and services, and to attract more customers. In contrast, customers are also advantaged by CRM getting required information for products and/or services (Weinstein and Johnson, 2014). However, as Li and Nicholls (2014) note, many companies still now do not have enough understanding of the practice of CRM and its actual effectiveness on customer retention.
The proposed research will analyze the effectiveness of CRM on customer retention level in the case of Tesco store, London. Tesco, the retail giant of the UK has been facing challenges in gaining an improved customer relationship and retention. Thus, Tesco has failed to achieve its organizational goals and objectives with improving sales revenue and profit margin since 2010 (Tesco Annual Report, 2015). There is evidence that CRM and improved customer retention (Kotler et al., 2015). Therefore, the study will emphasize building a strong relationship between UK supermarkets including Tesco and customers, and recommend Tesco to improve its strategies to gain increased customer retention levels.
1.2 Aims, objectives and research questions
1.2.1 Research Aims
The aim of the proposed study is to analyze the impact of CRM (Customer Relationship Management) on customer retention levels in businesses. Then, the study will provide recommendations for Tesco on how it can improve its CRM to increase customer retention level towards its brand.
1.2.2 Research Objectives
1) To examine the importance of customer relationship management practices for Tesco, UK
2) To explore different factors affecting customer retention of Tesco, London.
3) To analyze the impact of CRM on customer retention level in Tesco, London.
4) To provide recommendations on how to effectively use CRM to improve the customer retention
1.2.3 Research Questions
How Tesco Plc can use more effectively its customer relationship management (CRM) to attract more customers and retain them?
1 What are the components and dimensions of customer relationship management?
- What are the various dimensions that should be considered for customer retention?
- What is the role of various components of customer relationship management for customer retention in the context of the UK supermarket industry?
1.3 Justification of the research
Satisfying consumers have been the biggest challenge faced by UK supermarkets including Tesco mainly since 2009 (Bolton et al., 2012). Therefore, retailers in the UK including Tesco have taken seriously the issue how to build up stronger relations with customers to retain them. Although Tesco has introduced ‘Tesco Club Card’ and has taken other strategies to retain its customers, it has been facing difficulties to retain its customers. Thus, it has been the key issue to take more comprehensive measures. The downturn in business performance with decreased sales and profits since 2010 has forced Tesco to be more innovative and strategic now in build stronger relationships with customers. As a result, the proposed study will first explore the concept of CRM. Then, the study will study the importance of customer retention. Next, the study will focus on the impact of CRM on consumer retention levels in retail sectors. Finally, the study will provide recommendations for Tesco on how it can use CRM more effectively to improve its customer retention level.
1.4 Importance of the research
This research study will play a significant role in the development of Tesco and the researcher’s personal career. This study will find out the problems of Tesco and its government. Then, the study will find out the possible solutions for the government and state. Therefore, the Turkey government and its state will be advantaged through sorting out its current problems. On the other hand, the researcher personally will be benefited. This is because the undertaking study will developer the researcher’s interpersonal skills. Most importantly, it will develop the researcher’s research and analytical skills, and communication skills. In a word, it would be supportive to achieve a good career in the future and develop the researcher’s career in the research field…………..