Page 219 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes
services, delivering up to 150 million items per year. It has the largest individual share of
the national market and employs over 10,000 people across the UK and Ireland. TNT
operates in the tertiary (or service) sector of the economy which provides widely varying
services to other businesses and to consumers. The tertiary sector is the largest sector of
the UK economy, ahead of the primary (extraction) and secondary (manufacturing) sectors.

The Customer Promise
In 2008 TNT recognised that the increasing expectations of customers meant the business
had to make major changes to ensure it could meet their needs. In-depth research showed
that customer satisfaction depended not just on the process of delivering the service, but
also on how the service was carried out. This resulted in TNT adopting a core strategy
focused on delivering a quality customer experience. It developed a two-year programme
to implement and communicate its Customer Promise to employees and customers.
In order to achieve the levels of process innovation and continuous improvement that the
customer focus strategy required, TNT also needed to ensure the capabilities of its people
were aligned to this, particularly in delivering a high quality customer experience.
A review of new employees to the company showed that only 10% held qualifications
above QCF (Qualifications and Credit Framework) level 2, compared to the industry
norm of 52% (as identified by Skills for Logistics Research).
Source: http://businesscasestudies.co.uk/tnt/delivering-a-superior-customer-experience

12.3 Loyalty Programs for a Store

Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal
buying behaviour – behaviour which is potentially beneficial to the firm.
A customer loyalty program is a structured and long-term marketing effort which provides
incentives to repeat customers who demonstrate loyal buying behaviour.
Successful programs are designed to motivate customers in a business’s target market to return
often, make frequent purchases, and shun competitors. In retailing, these programs generally
reward loyal customers with discounts, special offers, rebates, points, or prizes.

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