MG526 Customer Experience at Morrison: An Analytical Report

Introduction

Customer experience (CX) refers to the totality of cognitive, behavioural, sensory, and affective responses during each stage of consumption process that includes pre and post purchase stages. Each company aims at improving customer’s experience as it is directly linked with the overall profitability and stability of the business entity. Morrison is the fifth largest supermarket chain of UK and currently it has 497 stores across England. The organization was established in the year of 1899 by William Morrison and it’s headquarter is present in Bradford (Description of Morrison, 2023). This report is based on evaluating customer’s experience from Morrison’s product and services.

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Main Body

Value proposition of Morrison

Value proposition refers to the statement that defines the satisfaction which customer’s will experienced from firm’s product and services. “Be more competitive” is the value proposition statement of the Morrison. The company is contributing towards the product, services, facilities, jobs, supporting food banks and delivering high quality food. The company is also operating through the online retail; stores as to save customer’s time and provide the utmost effective experiences to them (Ertemel et al, 2021). Organization is also involved towards providing personalized offers based on the past purchases of the customers.

The proposition of Morrison is to provide services better than the competitors and making healthy as well as fresh food available at all the places. Morrison is offering the wide variety of goods and services along with effective quality that result into enhancement of overall goodwill and reputation of business entity. Further, firm is involved in utilizing the latest and updated technology so that the most effective services could be provided to the customers. In the current times, Morrison has initiated policies for the regular customers that are purchasing some of the selected product that are providing value to both brand and customer. Business entity has collaborated with MMG with the aim of easily connecting with its customer.

Morrison’s beliefs regarding the customer’s experiences

Morrison believes that firm is providing effective services to its customer by utilizing multiple channel approach. Firm claims that organizations are undertaking adequate communication with its customer by establishing shopping trips, listening group and by spending time with the customers. This approach provides opportunity to share their issues with organisation. By taking into account this necessary changes could be initiated by the business entity (Gahler, Klein and Paul, 2023). In the context of firm’s product, organization believes that company is providing large variety of goods and services that help in satisfying the overall needs and preference of the customers. Along with this, Morrison is attaining the economies of scale by providing product and services to the large target market.

This has helped in reducing overall cost of the goods and services for customer and result in enhancing customer’s experiences. Further, in the context of pricing strategy, Morrison has initiated penetration pricing strategy as it will help in providing goods at lower prices than competitors which in turn enhances the customer’s experience (Jiang and Stylos, 2021). Morrison has also focused on providing high convenience and accessibility to its customer as firm is having more than 600 physical stores in UK. Organization has also undertaken an agreement with Ocado for timely delivering goods to customer. Morrison has updated its promotion strategy as firm believes that digital platform is more effective than the traditional method. Morrison has focused over using SMM and SEO through which large number of customer could be attract within less cost. Further, firm promotes transparency and fairness in its advertisement that eventually result in better customer experience.

Targeted customer

The targeted customer refers to the individual that have been attracted by the organization through its marketing strategies. Below table indicates the target market of the Morrison:

Demographic	Geographic	Psychographic	Behavioural
Age: individual belonging to all age groups Gender: both males and females Income: lower, medium and higher income group	Density: rural and urban Areas Region: UK and other 50 countries (Segmentation of Morrison, 2024)	Lifestyle: traditionalist Interest: focus over cost effective and high quality product	User status: active Occasion: regular

From the above table, it has been identified that Morrison is targeting individual of all the age group and genders. The company provide large number of consumer goods that could be used for satisfying the need of all type of customers (Klink, Zhang and Athaide, 2021). Moreover, Morrison is using penetration pricing strategy’s that results in providing goods and services at lower cost than others. Due to this reason, lower income class people could also afford the product of the business entity. It has been identified that there are large number of physical stores of Morrison within UK which make its accessible and conveniences for urban as well as rural area pupil to purchase product. Individual that are cost conscious and requires high quality products are generally targeted by the business entity.

Six pillar of customer experiences Model

In the current time, quality of goods and services is not one factor that could differentiate firm’s product rather the experience provide to customer also plays a crucial role in forming competitive edge. Therefore, KPMG Nunwood has provided six crucial pillars for improving overall customer’s experience which includes personalization, expectation, resolution, time and effort, empathy and integrity. The brief description of model is as follows:

Personalisation: A company should provide goods and services according to one’s preference and needs. This could be achieved by taking regular feedback and recommendation from customer’s related to firm’s services (Malenkov, 2021). Addressing customer by name, providing personalized emails and customize goods according to one’ needs and wants will help in attainting the goal.

Expectation: For providing effective customer experience, it is necessary to deliver services above the customer’s expectation level. This could be done by offering efficient and fast services to the customer, offering personalised assistance and support, providing high quality services and depicting accurate information regarding the product.

Resolution:  The ability of organization in handling all the issues has huge impact on overall satisfaction and experience of the customer. This includes listening to customer’s point of view, apologizing for the mistake, accepting firm’s fault and providing an accurate solution through which customer’s issues could be effectively resolved.

Time and effort: The organization that is valuing efforts and time of the customers are able to gain large number of shopper result in enhancing firm’s profitability (Morrison III, Scully and Campbell, 2021). This could be initiated by providing self service option, shortening the buying process, offering efficient and fast delivery and improving digital presence.

Empathy: Understanding customer’s emotion and perception is another crucial requirement of each organization. Some of the measures for demonstrating empathy are listening attentively and actively, showing compassion towards beliefs, understanding other’s value and acknowledging customer’s feeling.

Integrity: The honesty, transparency and ethical practices of the origanization have huge impact on overall experience of the customers. For maintaining integrity, firm should be clear and fair regarding the pricing of product, fulfil all its commitment and promises, safeguard customer’s personal data and privacy.

Application of model within Morrison

The six pillar model of customer experience is effectively followed and implemented within Morrison with the aim of creating competitive edge. Various measures and activities selected by the Morrison for fulfilling the six crucial needs for the customer are as follows:

Personalization: For providing the facility of customization and personalization, customer survey has been initiated. Through this survey, three types of data have been collected that includes first party data; zero party data and digital behavioural data (Orús, Ibáñez-Sánchez and Flavián, 2021). Under first party, information is collected regarding their preference according to this which customization has been undertaken in firm’s product and services. Through Zero party data, voluntary survey has been conducted as to identify their interest and under digital data, customer’s requirements from firm’s online stores are identified. Based on the collected data, Morrison provide customized goods and send personalised messages to customer that help in enhancing their overall experiences. However, Morrison is not able to provide customised facility in large number of product and services resulting in negatively impacting on overall experiences.

Integrity: Morrison is able to maintain integrity for the customer as firm is involved towards sharing all the information related to product and services.. All the risk associated with product and services are defined as to promote transparency. Further, Organisation accepts its faults and undertaken effective measures for rectifying its mistakes. Morrison also focused over providing clear pricing structure of goods and services as to avoid confusion and for promoting fairness.

Expectation: Each customer lays emphasis over gaining high quality product and services at a minimum cost (Morrison’s six pillar of customer experience, 2024). In the current time, customer wants to streamline buying process and focuses over personalization. Morrison is concentrating over attaining economies of scale through which low cost and high quality good are delivered. On the other hand, Morrison claimed that food items will be delivered within 30 minute in UK but from the survey it has identified that firm generally take longer time to deliver product.

Resolution: Many times, organization is not able to fulfil the needs and wants of the shopper that result in poor customer experiences (Sagar, 2024). Manager in Morrison patiently listen to customer’s point of view and take proactive measures as to manage customer’s loyalty.

Time and effort: In the present time, the entire customer requires product and services at the earliest and without wasting time. In this context, Morrison has involved towards providing self service option to the customer which helps in reducing payment time for them. Along with this, organization has provided an effective websites through which product could be easily ordered. However the delivery time, claimed by company is longer then actual that impact on customer’s experiences.

Empathy: Employees in Morrison always respond in polite manner which helps in creating positive image for customer. Company acknowledge customer’s concern and feeling and provide effective assistance and support for resolving all concern.

Impact of digital disruption on customer’s experiences 

Digital disruption refers to the changes that have been initiated within the organization due to introduction of new technology within industry. Augmented reality, artificial intelligences, Virtual reality, RFID technology and robotics are the latest technology that has changed the value of industry’s goods and services (Sitorus, Juliana and Kho, 2021). This technology helps in automating various routine tasks of firm results in increasing overall efficiency and reducing cost. AI assists in enhancing decision making process by providing high amount of data that support in effective predictions and forecast. Virtual reality supports in streamlining supply chain operations and also helps in providing cost effective training to employees. Various positive and negative impact of all the technology on the customer’s experiences within Morrison could be understood through following points;

Positive impact of technology:

Personalization: with the help of technology, organization is able to understand the preference and need of customer by analysing past data. This provides opportunity for organization to provide customized product after adhering to customer’s recommendation. Personalization helps in fulfilling other’s needs that result in providing effective experience to customers.

Enhance customer support: By adopting AI powered chat bots and virtual assistance all the queries of customers are timely resolved which help in improving their satisfaction.

Streamlined checkout process: Introduction of new technology has helped in streamlining buying process for customer that results in enhancing Morrison’s reputation (Sting, Tarakci and Recker, 2024). Many stores has initiated AI powered checkout system that result in higher conversion rate and reducing abandoned carts.

Negative impact of technology

Below mentioned are various negative impact of technology on overall experience and satisfaction of customer:

Concern of security and data privacy: the use of technology for storing all; the information regarding customer has increased the concern towards data security. Hackers could easily gain access to all the personal information of customer which has resulted in negatively impacting their satisfaction.

Ineffective customer support: AI integration within customer support has helped in quickly providing response to customer’s issue but complex issues could not be resolved by such technology (Zhong et al, 2023). Moreover, AI is not able to effectively understand the perception of customer which leads to providing unreliable responses that increases customer’s frustration.

Impact customer’s relationship: Technology has reduced the interaction between the customer and the organization that has resulted in negatively impacting on overall relationship. A sense of detachment has been developed within customer that results in reducing their loyalty and negatively impact on overall firm’s profitability.

Findings from survey

Theme 1 High satisfaction within the quality of product

From the survey it has identified that large number of customers are satisfied with firm’s services that results in enhancing firm’s reputation. This also indicates that firm is providing high quality and timely services which fulfil the needs and demand of customer.

Employee satisfaction

Theme 2 Adequate skills and Knowledge of Morrison’s employees

Majority of respondent’s believes that employees are highly skilled in the Morrison that helps in providing adequate services and resolving their queries.

Employee knowledge

Theme 3 Product variety should be increased for better experiences

It has concluded that Morrison should focus over introducing wide ranges of product that will help in better customer experience.

Improvement

Recommendation

After analysing all the current measures and activities of the Morrison, it has identified that firm need to initiated new strategies for enhancing customer experiences. Some of the measures by which customer experiences could be enhanced are as follows:

• Morrison should involve towards adopting effective inventory management system which will help in managing availability of product which will help in enhancing customer’s experiences. This system will also help organization in effectively managing all the stocks that results in improving efficiency and reducing cost.
• For improving customer’s experience Morrison should focus over effectively utilizing all the technology, company should maintain balance between technology and employees (Riaz et al, 2021). Morrison should introduce user friendly point of sale system which will help in making check out process effective and aids in ensuring adequate availability of stock.
• Further, the queue management system of the Morrison needs to be improved that will help in enhancing customer experience while reducing waiting time. This management system will also assist in providing real time data to manager based on which staff could be effectively allocated during busy time.
• Manager in Morrison should emphasis over initiating self services Kiosks which will allow customer to undertake all the process independently result in reducing waiting time. A kiosk has reduced the need of cashier as bills are automatically generated and customer could pay through digital mode that leads to enhancing customer’s experiences.
• It has identified that Morrison has wholly depended on AI Chatbot for resolving customer’s queries which is increasing dissatisfaction. Morrison should lays emphasis over improving customer support system by using both technology and employees (Har et al, 2022). Staff members will able to understand the complex issue that will help in providing adequate response to customer that results in improving overall experience.
• Morrison should focus over conducting survey with customer’s which will help in understanding their needs and preferences. Based on results, organization will able to undertake necessary changes which will help in satisfying customer’s need and results in providing better experience.
• Company needs to invest towards R&D session which will help in promoting innovation that result in providing high quality goods. Research will also assist in identifying measures for reducing cost of production which will help in providing product at a reasonable price.
• Morrison needs to invest towards providing effective training and development session to employees. This will aids in improving employee’s efficiency that results in providing better service leading to enhancing overall satisfaction.

Conclusion

By summing up report, it has identified that Morrison’s value proposition is to be more competitive by providing effective services. Company has updated its entire product, place promotion and price strategy that help in providing effective experience. Morrison is effectively following six pillar models of customer experience by promoting transparency and ethnicity in all its operations. Technology has resulted in providing personalisation and better customer support services. However the technology has lead in increasing security risk, reducing customer relationship which results in reducing overall their satisfaction.

References

Books and Journals

Ertemel, A.V., Civelek, M.E., Eroğlu Pektaş, G.Ö. and Çemberci, M., 2021. The role of customer experience in the effect of online flow state on customer loyalty. PloS one, 16(7), p.e0254685.

Gahler, M., Klein, J.F. and Paul, M., 2023. Customer experience: Conceptualization, measurement, and application in omnichannel environments. Journal of Service Research, 26(2), pp.191-211.

Jiang, Y. and Stylos, N., 2021. Triggers of consumers’ enhanced digital engagement and the role of digital technologies in transforming the retail ecosystem during COVID-19 pandemic. Technological Forecasting and Social Change, 172, p.121029.

Klink, R.R., Zhang, J.Q. and Athaide, G.A., 2021. Measuring customer experience management and its impact on financial performance. European Journal of Marketing, 55(3), pp.840-867.

Malenkov, Y., Kapustina, I., Kudryavtseva, G., Shishkin, V.V. and Shishkin, V.I., 2021. Digitalization and strategic transformation of retail chain stores: Trends, impacts, prospects. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), p.108.

Morrison III, W.R., Scully, E.D. and Campbell, J.F., 2021. Towards developing areawide semiochemical‐mediated, behaviorally‐based integrated pest management programs for stored product insects. Pest Management Science, 77(6), pp.2667-2682.

Orús, C., Ibáñez-Sánchez, S. and Flavián, C., 2021. Enhancing the customer experience with virtual and augmented reality: The impact of content and device type. International Journal of Hospitality Management, 98, p.103019.

Sagar, S., 2024. The Impact Of Digital Transformation On Retail Management And Consumer Behavior. IOSR Journal of Business and Management (IOSR-JBM) e-ISSN, pp.06-14.

Sitorus, N., Juliana, J. and Kho, C., 2021. Analysis of Marketing Aspect in Feasibility Study of Asian Culture Gallery in West Jakarta. JELAJAH: Journal of Tourism and Hospitality, 3(1), pp.58-67.

Sting, F.J., Tarakci, M. and Recker, J., 2024. PERFORMANCE IMPLICATIONS OF DIGITAL DISRUPTION IN STRATEGIC COMPETITION. MIS Quarterly, 48(3).

Zhong, L., Morrison, A.M., Zheng, C. and Li, X., 2023. Destination image: a consumer-based, big data-enabled approach. Tourism Review, 78(4), pp.1060-1077.

Online

Morrison’s six pillar of customer experience. 2024. of Online. Available through: < https://www.nejlepsi.cx/en/pillars>

Segmentation of Morrison. 2024. Online. Available through: < https://www.morrisons-corporate.com/about-us/strategy/>

Description of Morrison. 2023. Online. Available through: < https://www.dictionary.com/browse/morrison>