«012020 Developing competitive advantage through customer service - Business Case Studies Developing competitive advantage through customer service ‘Morrisons was founded over 100 years ago, asa stall in Bradford market Tt has been a family business for most ‘of the time since, Under Sir Ken Morrison's 55-year leadership, until he retired in 2008, the company grew steadily ‘from market stall to superstore.’ With over 450 stores, its now the UK's fourth largest food retailer, Differentiating the business Amongst the large supermarkets, several features make Morrisons stand out and differentiate it from competitors. By promoting its fresh approach’ and commitment to sustainability, customers become aware of the freshness ofits food and its concern for the environment, Morrisons holds great control of is supply chain ‘known asthe ‘field to fork’ approach, As a result it possesses more control over the quality ofits produce. ‘This helps create a competitive advantage. Fresh produce is sourced locally wherever possible, which is then processed in Morrisons’ own manufacturing facilites. Fresh produce is delivered into its own lemperature- controlled warchouses and pecking plans in the UK and abroad, Produce is then carefully transported to stores nationwide, This vertical integration allows Morrisons to support local producers and UK farmers. Achieving competitive advantage ‘Morrisons employs more specialist butchers, fshmongers and bakers than any ofthe other UK leading supermarkets. Morrisons’ fresh and innovative business focus is reflected in its approach to reertment, In 2010 ittemployed more than 131,000 people who served over 11 million customers each week. It offers career ‘opportunities in a varity of areas including logistics, manufacturing, specialist trades, IT, marketing and finance “Morrisons prides itself on its dedicated approach to career advancements through its ‘shop floor to top floor” approach, Morrisons is passionate about creating careers for fresh new talent, This is reflected in its aim to attract 1,000 new young people to join the team next year. Morrisons won the Employer of the Year Awand st the 2011 Grover Gold Awards. This demonstrates the focus it places on colleagues and their ability to deliver ffesh produce and exceptional customer service. ‘This ease study shows how Morrisons uses customer service to differentiate itself from its competitors, motivate its colleagues and help the business to grow, Customer service hitps:fousinesscasestuctes.co.uk/developing-competiive-advantage-hrough-customer-service-2/ wr«012020 ss Case Studies High quality customer service is a key way in which a business can differetiate itself from another, Morrisons’ ‘customer service strategy is simple: to provide the best customer service by developing the best-trained and ‘motivated colleagues within an envi fet where the top large supermarkets compete for marketshare. Is specialist in-store butchers, bakers and fishmongers work on Morrisons’ Market Strect to ensure customers get a personalised service from a trained professional. By building high levels of customer satisfaction, Morrisons creates significant competitive advantage Delivering customer satisfaction To provide the best customer service, a business needs fo know what its customers expect oft and then mect ‘these expectations. Customer satisfaction is vital for keeping customers happy and loyal tothe business It can ‘often be much more cost-effective to retain customers than to attract new ones, Morrisons achieves this by offering produets and services, through its Market Stree, that are not offered by ils competitors therefore _maximising customer retention Morrisons has invested heavily in training and developing colleagues to generate its high quality customer service and has attracted more customers this past year than ever before, This shows that Morrisons" customers ving more satisfied with its focus on personal serviee, efficieney reliability, quality and freshness. (Quality customer service adds value asi improves customers’ experience, making thes {eel valued and therefore more likely to hecome a repeat customer, Customers expect to be valued and to be assisted by helpful and fhiendly colleagues. They need clear information and good aftersales service. They also want their queries dealt with competently, quickly and accurately. They seck value for money and high levels of colleague knowledge and expertise, Elements of customer service Four key components of customer service ar: + Information - this includes information given directly to customers by colleagues and deals given on published material such as websites, packaging, catalogues and leaflets, In-store, directions and signs to products allow customers to navigate through the store more effectively ‘Specialist attention - advice must be accurate, available when and where customers need it and from colleagues who know what they are taking about, At Morrisons, this includes expertly trained specialists or fis for different menus as well as how to such as butchers and fishmongers who edvise on the best mes cook it appropristely + Aftersales service - this refers to all arcas of customer involvement once the sale has taken place It includes packaging, guarantees, complaints, refunds and exchanges. At Morrisons, helpful and friendly colleagues deliver an exception stoners. + Convenience - this includes the location of stores. ease of access and car narkine. availability of public hitps:fousinesscasestuctes.co.uk/developing-competiive-advantage-hrough-customer-service-2/ ar«012020 Developing competitive advantage thraugh customer service - Business Case Studies Measuring customer service ‘Morrisons measute is customer service in a number of ways. Quantitative measurement often takes place through exit surveys in every store each month. Qualitative measurement often takes place through methods such as mystery shops, which allows the gathering of customer opinions and comments The ‘Morrisons miles’ card rewards regular petrol station users who collet points from fuel purchases with shopping vouchers to spend in-store, This helps to retain loyal customers by rewarding them regularly for repeat purchases. Morrisons focuses on customer service through an initiative called “HOT” which stands for ‘ell, Offer, Dhank- ‘you’. The focus of HOT” aims to bring Morrisons colleagues and customers closer together with its principle aim to: “Establish rewarding experiences which ereate an emotional relationship between the customer and the The 'HOT' philosophy ‘The “HOT” philosophy is applied by all colleagues tal stores to deliver higher quality and industry-leading customer service. Colleagues ate encouraged to talk and integrate with customers to deliver a truly personalised customer service experience ‘chat as you stack'and ‘talk as you walk ‘The communication and traning programmes forthe rollout of such an initiative ean be expensive, The benefits of creating an environment where colleagues have been well trained to deliver great customer service, far ‘outweigh the associated costs, Colleagues that are engaged and committed to deliver great customer service will censure that customers receive a better quality service Colleague engagement Encouraging customer-focused behaviour ) ‘The behaviour of Morrisons’ colleagues has a direet influence on the level of customer service received instore hitps:fousinesscasestuctes.co.uk/developing-competiive-advantage-hrough-customer-service-2/ 3«012020 Developing competitive advantage thraugh customer service - Business Case Studies of Tear while you eam means thet existing colleagues and new recruits can gain qualifications and experience ‘whilst working, This benefits both themselves and the business. People development Development occurs at all levels, including apprenticeships and courses for school leavers, in-house degree programmes, jobs and training for graduate recruits. Last year 48,000 colleagues achieved the QCF (NVQ) Level 2 Retail Skills qualification that helped them to improve their understanding of serving customers, effectively: Morrisons continually looks for team players with the leadership skills, passion, commitment, integrity and drive to make things happen. ‘The Mortisons’ Academy provides support and training for colleagues ofall levels from school leavers to senior roles. The Academy isa partnership between Morrisons and severel academic institutions including the Bradford School of Management and the Bradford Business School. The Academy is committed to taining all colleagues, including managers, to deliver excellence in their jobs based on expert coaching and the Morrisons sdby ‘model for excellent customer service. 10% of Morrisons" managers are ‘home grown’, having been tr ‘the organisation rather than being recruited externally. Morrisons think of itself as being a leaning “organisation, whieh means that as solutions fo issues are developed they become ‘company knowledge’. This approach helps Morsisons colleagues to continuously improve the customer experience, “Morrisons focuses on three areas: + Training — ensuring all colleagues have the skills and motivation that they need to deliver great customer service. The development of traditional cra skills including baking and butchery skills means that ‘customers enjoy food prepared tothe highest standard, + Coaching — used to build confidence and commitment through support, mentoring and guidance. Examples include input ftom sports coaches at Leeds Metropolitan University to help improve performance by delivering improved service to customers + Communication - used to make 1 tha all colleagues are aware of benefits and changes. This keeps colleagues enthusiastic and engaged. The 'one-team' approach hitps:fousinesscasestuctes.co.uk/developing-competiive-advantage-hrough-customer-service-2/ an«012020 Developing competitive advantage thraugh customer service - Business Case Studies from colleague discounts and long service awards to profit sharingEveryone lies the opportunity to share in the success of the business over the year with a lump sum peyment related to earnings, The benefits of customer service Morrisons focuses on developing colleagues in onder to satisfy customers in the best way possible, Colleagues x ofthe Morrisons family neouraged to engage with customers and help them to feel that they are ap ‘This helps create loyal customers by offering the best fresh produce and excellent customer service. Colleagues are trained to help play a key role in delivering good customer service, Colleagues are therefore an integral part of the customer service offering and their training helps them to deliver this, The high levels of customer service at Morrisons leads to satisfied customers and repeat trade, with the numberof customers visiting the store up from 10.5 million to 11 million per woek, Supporting business objectives Itcan be seen that good customer service feeds directly into strategies for improved business performance and business growth, The emphasis placed on customer service also helps with colleague motivation, When back, this makes them proud which in turn motivates them to deliver colleagues reoeive positive customer fe ‘even better customer service, Praise from customers fed back to colleagues is one of the key positive outcomes of delivering quality customer service for any colleague at Morrisons Conclusion Morrisons aims tobe the best supermarket for fresh foods to give it an advantage over its competitors, This is achieved through its unique “field to fork” integrated approach which allows it to contro its own supply chain to censure that food i fresh and of the highest quality hitps:fousinesscasestuctes.co.uk/developing-competiive-advantage-hrough-customer-service-2/ 37«012020 Developing competitive advantage thraugh customer service - Business Case Studies ‘Morrisons trans colleagues through customer service initiatives such as ‘HOT to become experts who can offer customers best possible evel of service. Training and development programmes create an environment ‘where colleagues ae able to deliver exceptional customer service. Morrisons aims t train colleagues who are motivated and proud of wise they work for, supported by ‘management that understands and values is people, This helps everyone fel part of the family, upholding the Family values and traditions of @ family-focused business, As Mortisons says: feels different for our customers because it feels differen for our people’ | eprror picks Everything You Should Know About a Credit Card ‘Online gambling and its advantages | must reap Everything You Should Know About a Credit Card ‘Online gambling and its advantages | rorutar carecortes Blog 1483 Business Case Studies ust Case Studies 536 Companies 29 Business News ama Buin 268 Revision Theory wh hitps:fousinesscasestuctes.co.uk/developing-competiive-advantage-hrough-customer-service-2/ er«012020 Developing competitive advantage thraugh customer service - Business Case Studies Business Case Studies Teaching Business Studies by eal life examples. helping teachers and students learn business with examples in real companies in our ease studies with questions and lesson plans. 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