Free Essay

Customer Care

In: Business and Management

Submitted By Lisamarie28
Words 2441
Pages 10
Table of Contents

1. INTRODUCTION 3 2. PROCEDURES 3

3. FINDINGS 3

3.1 Customer Service Standards 3

3.2 Identifying and meeting the expectations of key customers 4

3.3 Maintaining Customer Aftercare 5

3.4 Obtaining and monitoring qualitive and quantitive customer feedback 5

3.5 Evaluation 6

4 Conclusion 7

5 Recommendations 7

1. INTRODUCTION

This report is being produced at the request of Annette Wilson of Wilson’s Consulting. The report is to evaluate the Customer Care Strategy for Sainsbury’s. The reason for choosing this organisation is because of their quality of products and convenience regarding the location of the store. Sainsbury’s is part of J Sainsbury PLC, which was founded in 1869 in London by John James Sainsbury and his wife Mary Ann Sainsbury. They now have over 1,200 supermarkets and convenience stores and have now grown to be one of the largest retailers in the U.K. Sainsbury’s state that they “put their customers at the heart of everything they do”. (Sainsbury’s, 2015). They state that their “values and ethos have never changed” (Sainsbury’s, 2015) however they are aware that the retail industry has changed over the years therefore they created a new strategy to continue to be known for excellent customer service and to evolve their organisation so that they can continue to provide for their customers by being able to satisfy the customers needs with regards to “what customers want, when, where and how they want it”. (Sainsbury’s, 2015). Sainsbury’s has recently undergone a period of restructure as they wanted to improve efficiency and customer service.

2. PROCEDURES
The findings for the content of this report was primarily sourced from Sainsbury’s website which is detailed in the Bibliography/Referencing section.

3. FINDINGS

4.1 Customer Service Standards

Sainsbury’s Vision is “to be the most trusted retailer where people love to work and shop” (Sainsbury’s, 2015). This vision demonstrates that their customer care policy pertains to both their internal and external customers. Their Goal is to “make customers’ lives easier by offering great quality and service at fair prices as well as serving their customers whenever and wherever they want”. (Sainsbury’s 2015). This is relative to whether their customers are shopping instore, online or for home delivery. Their Strategy states that they know their customers better than anyone else. They believe their colleagues make the difference to customer service and that their values make them different from their competitors. The main focus for Sainsbury’s is their 2020 Sustainability Plan, which contains 5 Key Values and guided by these 5 Key Values they have set themselves 20 challenging sustainability targets which they aim to reach by 2020. Within this Plan, they are focused on their customer’s wants and needs and believe that their values are what makes them different from their competitors. The 5 Values are: * Best for Food and Health – This is where they are committed to producing healthier baskets for customers by setting targets for salt reduction in their own-brand products. They are also working with their suppliers to reformulate their own-brand soft drinks to have less sugar. * Sourcing with integrity – They are working with suppliers to address the sustainability of their products and have so far ensured that their palm oil they use in their own-brand products is certified sustainable. They came joint top in the Marine Conversation Society’s 2014 survey for having the best own-brand seafood policy. * Respect for our environment – They have installed over 100,000 LED lights which has been a programme with award winning initiatives. They are currently searching for new ideas on innovation for energy efficiency. They have one store which became the first retail outlet in the UK to be powered by food waste alone. * Making a positive difference to our community – In the last year with help from customers, employees and suppliers they have raised millions of pounds for charitable causes including The Royal British Legion and Red Nose Day. They also raise money with their Active Kids scheme which they received the Big Society Award in March 2015 from David Cameron. * A great place to work – They recognise that their employees are a valuable asset and make a difference in customer service standards and provide a range of training as well as recently opening a new college for their Team Leaders and Store Managers which is dedicated to leadership training.
These values show that they have most probably used the PEST analysis and SWOT analysis procedures and incorporated these into their short, medium and long term plan within their strategy.

3.2 Identifying and meeting the expectations of key customers
Sainsbury’s are aware that it is imperative to provide an excellent standard of customer care in an increasingly competitive marketplace and that they have to meet, if not exceed their customers expectations. They are able to personalise their communication methods and offers to meet the individual customers needs. They do this via their Nectar loyalty scheme where they can inform their customers of products and services unique to them and reward them with offers that are relevant to the customer. They know that customers want value for money therefore Sainsbury’s have benchmarked themselves against their competitors and are focussing on lowering their prices (without the detriment to quality) and state that compared to their competitors their prices have never been better. This is because they are introducing and concentrating on more of their own-brand products. They are also investing in more ‘Click and Collect’ instore as they believe that this is a more convenient method of shopping for some customers. As well as their external customers, they are investing in their internal customers, via training, as they believe that their employees are the heart of the company.
Sainsbury’s talk to their customers face-to-face, via telephone and online via their website as well as the use of social media via Facebook and Twitter. They have focus groups and also do accompanied shopping with their customers in stores to have an understanding of what products, services and values their customers would like.
Online shopping with Sainsbury’s is now more convenient with their new click and collect service (which they are rolling out nationwide) and they have invested in pricing and availability of delivery slots. This has increased their order numbers and also their customer loyalty. As customers shopping habits have changed over the years, this is a trusted investment as they are now able to compete with the other supermarkets who do this.

3.3 Maintaining Customer Aftercare

Sainsbury’s look after their customers by gathering the information from customers Nectar loyalty scheme and offering customers vouchers or money off relative to the customers favourite shopping items. Within their loyalty scheme they now also offer money off vouchers for fuel at their petrol stations and are also having special offer events where the Nectar points can be boosted up for commodities.
In the last year they have sent out around 35 million personalised mailings to Nectar card holders where they used their customers shopping preferences to offered vouchers and other special offers for the products customers want to buy.
This is a good way to continue to maintain their customers loyalty and also competitive with other supermarket loyalty schemes.

3.4 Obtaining and monitoring qualitive and quantitive customer feedback
In an ever increasingly competitive market and with customers now having a wider choice for their shopping experience, it is important for companies to get feedback from their customers so that they can enhance and improve their customer service as well as retain customer loyalty.
One way Sainsbury’s monitor customer feedback is that they have an online customer panel called Trolley Talk where customers can discuss any issues. They reach around 4,000 customers every week. Through this method of feedback it allows Sainsbury’s to identify what issues are important to the customer which leads to Sainsbury’s being able to take action and make changes quickly and effectively. An example of this is where customers highlighted that the price dairy farmers pay for their milk was a concern, therefore Sainsbury’s were then able to advertise that they pay their farmers a higher price for milk than many of their competitors. This is a great method to enhance the level of customer care as it shows Sainsbury’s are listening to their customers as well as this also being a great marketing tool to entice new customers.
They recently introduced a system called ‘Yammer’ which allows employees to share best practice, get their questions answered in real time and more importantly to communicate and celebrate success. They monitor the progress of their employees providing excellent customer service via a Mystery Shopper programme. The Mystery Shopper visits each store every fortnight to measure the service levels of that store. As a result of these visits, Sainsbury’s state that “their stores continue to perform strongly year-on-year”. (Sainsbury’s, 2015)

3.5 Evaluation

Sainsbury’s have opened a new training college last year, have run courses in management skills and coaching and believe that this equips their employees with the skills and product knowledge to provide a better service to customers. Last year won the Training Initiative of the Year Award at the Retail Industry Awards for a programme that they had designed to improve operational outcomes and customer experience.
Conclusion

It can be seen through this half-way point of their Sustainability Plan that Sainsbury’s are continuing to evaluate their customers shopping experience and value their employees. Their vision is that they want their company to be “the most trusted retailer where people love to work and shop”. (Sainsbury’s, 2015). This shows that they value their customers as well as their employees. Their employees are paid above the minimum living wage, receive a 10% discount and other employee benefits.

3 Recommendations

It is recommended that Sainsbury’s continue to offer an excellent level of customer care not only to try and achieve a higher profit margin for their shareholders but to also retain a share of the retail market and continue to meet the needs and expectations of their loyal customers as well as trying to gain new customers. They should continue to implement more of their ‘own-brand’ products at a competitive price which helps their pricing to be in line with Tesco, Asda and Morrison’s. They should also continue with their reputation for quality and this can possibly give them the competitive edge. There should be more information on their website with regards to the new Nectar loyalty points scheme bonus structure as it appears this is now benchmarked against Tesco’s Clubcard Boost rewards system.
They should continue with their ongoing training and development with their employees to meet the expectations of excellent customer service that they state they offer. They are investing in a new Colleague Portal to allow communication to be more efficient and are trialling the use of tablets for their store managers to allow the managers to spend more time with the customers and colleagues on the shop floor which shows their continuous commitment to both internal and external customers alike.
They are currently at the half-way point of their 2020 Sustainability Plan and as their values are part of their long-term strategy for growth it is recommended that they continue to review and monitor these values, remain focused on delivering these to their customers, suppliers, colleagues and shareholders. In doing this, they can remain competitive and hopefully continue to offer an excellent service of customer care.

Bibliography

Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/

Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/

Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/business-strategy-and-objectives/

Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/business-strategy-and-objectives/we-know-our-customers/

Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/our-values/

Sainsbury’s 2015 - http://www.sainsburys.co.uk/sol/iw_container_page.jsp?pageRef=sites/www/site_furniture/Site_Furniture_RI.page
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/responsibility/factsheets/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/media/1915645/factsheet_food___health.pdf
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/media/2469576/Sourcing%20with%20integrity%20Factsheet.pdf
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/media/2386154/factsheet_environment.pdf
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/media/2414938/factsheet_bees___biodiversity.pdf

Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/media/2385947/factsheet_community.pdf
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/media/1790296/sainsbury_s_a_great_place_to_work_factsheet.pdf
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/responsibility/factsheets/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/media/2386085/factsheet_management.pdf
Sainsbury’s 2015 - http://www.j- Sainsbury’s 2015 - sainsbury.co.uk/media/1488636/csr_factsheet_new_fashioned_values.pdf
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/media/2385878/factsheet_reporting.pdf
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/responsibility/organisations-we-engage-with/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/responsibility/our-progress-so-far/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/145-years-of-history/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/business-strategy-and-objectives/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/business-strategy-and-objectives/we-know-our-customers/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/business-strategy-and-objectives/there-for-our-customers/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/business-strategy-and-objectives/great-products/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/business-strategy-and-objectives/colleagues-making-the-differece/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/business-strategy-and-objectives/our-values-make-us-different/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/our-values/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/about-us/business-structure/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/extras/faqs/
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/extras/faqs/general/#tabbed_section
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/extras/faqs/investor-centre/#tabbed_section
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/extras/faqs/responsibility/#tabbed_section
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/extras/faqs/media/#tabbed_section
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/media/latest-stories/2015/1112-sainsburys-celebrates-judith-kerrs-iconic-childrens-book-character-mog-in-its-2015-christmas-campaign-supporting-save-the-children/
Sainsbury’s 2015 - http://help.sainsburys.co.uk/help/website/how-to-contact-us
Sainsbury’s 2015 - http://help.sainsburys.co.uk/help/company-values/conduct-interview
Sainsbury’s 2015 - http://help.sainsburys.co.uk/help/company-values/project-help
Sainsbury’s 2015 - http://www.j-sainsbury.co.uk/media/latest-stories/2015/0605-sainsburys-brings-signvideo-to-deaf-bsl-customers/

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