Reference no: EM132012340

Tesco, the U.K. retail grocery chain, used its CRM system to generate annual incremental sales of £100 million. Using a frequent-shopper card, a customer got discounts at the time of purchase and the company got information about their purchases, creating a detailed database of customer preferences. Tesco then categorized customers and customized discounts and mailings, generating increased sales and identifying new products to expand their offerings. At the individual stores, data showed which products must be priced below competitors, which products had fewer price-sensitive customers, and which products must have regular low prices to be successful. In some cases, prices are store-speci?c, based on the customer information. The information system has enabled Tesco to expand beyond groceries to books, DVDs, consumer electronics, ?owers, and wine. The chain also offers services such as loans, credit cards, savings accounts, and travel planning. What focus is used in providing value i.e. Strategic, tactical or operational? Why is the choice of focus important? Is the value sustainable over time? In general describe the advantages provided by aligning a CRM system to an organization's strategic objectives.