DIGITAL MARKETING COMMUNICATION PLAN OF JOHN LEWIS

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 Abstract
This study explores the strategic partnership between John Lewis and Google Cloud, as the
company aims to improve its digital transformation by utilizing AI and ML technology. The
partnership's heavy investment in IT infrastructure will substantially enhance customer
experiences across all channels. Using academic research and industry viewpoints, this study
analyses John Lewis's current digital marketing communication channels and determines how
effective they are in driving business growth. In addition, it delves into John Lewis's present
relationship marketing strategies, drawing attention to the importance of customer engagement
and loyalty in the long run. A few recommendations for enhancing the use of digital technology
are provided with the aim of fostering closer relationships with consumers, strengthening brand
loyalty, and fostering sustainable growth within the fiercely competitive retail sector.

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Table of Contents
Abstract......................................................................................................................................................2
Part A.........................................................................................................................................................4
Introduction...............................................................................................................................................4
Marketing Strategy of John Lewis...........................................................................................................5
Digital Marketing Communication Channels.........................................................................................6
Academic Analysis.....................................................................................................................................8
Conclusion................................................................................................................................................10
Part B.......................................................................................................................................................11
Relationship Marketing Strategy of Lewis............................................................................................11
Recommendations...................................................................................................................................17
Conclusion................................................................................................................................................19
References................................................................................................................................................20

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Part A

Introduction
The marketing strategy shows how well the business did in relation to the client and how it
affected his purchasing behavior. At the moment, it's all the rage in online marketing to help
companies encourage customers to shop in a more individualized way. Companies' marketing
approaches have evolved alongside the development of new technologies. In this context,
"digital marketing" refers to the advancement of any business or brand through the utilization of
various digital platforms, including but not limited to email, mobile applications, social media,
and similar sites.

It is difficult to recall, but 2009 was not a great year for one of the most beloved UK retailers.
Customers' wallets have felt the effects of the economic crisis on all of John Lewis's stores,
including this one. That wasn't, however, the only thing about it. Although John Lewis has
earned a great deal of trust, he has never experienced true love. Consequently, they reduced their
spending and made fewer purchases. To increase sales and client loyalty, John Lewis played on
people's sentiments rather than their logic. The first commercial that aired that Christmas
featured happy kids opening presents from adults, and it was followed by a remix of a popular
song by a contemporary musician who would go on to inspire all the following commercials.
Among the most lauded and discussed UK advertisements of 2013 was that of British store John
Lewis. Yet, not long ago, the merchant had gone through a lot, just like many of his fellow
highwaymen. In addition to being higher than the average of the British Retail Consortium, sales
over the 18 months ending in April 2009 were also negative (Vrtaňa, 2019).

John Lewis's strategy was to appeal to clients' emotions rather than their logic in the hopes of
attracting more customers and spending money. The first commercial that aired that Christmas
featured happy kids opening presents from adults, and it was followed by a remix of a popular
song by a contemporary musician who would go on to inspire all the following commercials.
Among the most lauded and discussed UK advertisements of 2013 was that of British store John
Lewis. Yet, not long ago, the merchant had gone through a lot, just like many of his fellow
highwaymen. Similar sales were negative over the 18 months leading up to April 2009, although
being higher than the British Retail Consortium average (Baker, 2018).

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Marketing Strategy of John Lewis
Customer Centric approach

For many years, John Lewis has placed a strong emphasis on offering extraordinary experiences
for its customers. Whether it be through its well-known high-quality items or its well-known
customer service, John Lewis places a high priority on the satisfaction of its customers. The
company's relationship with Google Cloud, which aims to utilize artificial intelligence and
machine learning technology in order to provide personalized consumer experiences, reflects this
customer-centric strategy (Nash and Sidhu, 2023).

Digital Transformation

By recognizing the significance of digitization in the contemporary retail industry, John Lewis
has taken the first step towards undergoing a digital transformation. Increasing operational
efficiency, customer engagement, and overall competitiveness are all goals that can be
accomplished through the collaboration with Google Cloud, which represents a considerable
investment in the infrastructure of technology (Sammour et al.,2020).

Innovation

Fundamental to John Lewis's business model is a commitment to constant innovation. By

utilizing state-of-the-art technology like AI and ML, the retail institution plans to transform the
way clients purchase. For instance, John Lewis's dedication to innovation and anticipating
market trends is exhibited by services like image scanning to offer tailored recommendations
(Mustaphi, 2020).

Omni Channel Retailing

The importance of fully integrating its traditional and online platforms is something that John
Lewis is well-aware of. Their goal is to provide consumers with a consistent shopping
experience across all of their touchpoints, which could include in-store, mobile apps, and online
platforms like JohnLewis.com and Waitrose.com. Clients are given more convenience and
accessibility by using this Omni Channel strategy (Cathcart, 2009).

Covid-19 Strategy

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The most current annual report on consumer behavior from John Lewis shows that consumers
shopped more channels than ever before during the COVID-19 outbreak, including online and on
mobile devices. This led the company to change its emphasis on services rather than products on
their online and in-store. More than half of John Lewis's sales now happen online, according to
their How We Shop, Live and Look 2021 report. Online sales have climbed by 73% in the last
year, bringing the total to 60% to 70%, up from 40% before the pandemic. App sales have surged
to 25% of transactions, up from 15% before the pandemic, thanks to more than a thousand
collecting locations. More than half of buyers also utilize a combination of in-store and online
channels when making purchases (Lewis, 2011).

Digital Marketing Communication Channels

Website and e-commerce Platform

Two of the store's most prominent internet touchpoints are JohnLewis.com and Waitrose.com. In
addition to showcasing products, platforms like this streamline the online purchasing process for
customers. Websites and other online platforms are vital to the growth of companies. Online
stores offer numerous advantages over traditional ones, including 24/7 customer service, more
sales opportunities across channels, cheaper operational costs, data-driven insights into customer
behavior, scalability to accommodate growth, and strong marketing and promotion capabilities.
Businesses like John Lewis may take advantage of these digital technologies to reach more
people, sell more, run more efficiently, and create more loyal customers. Their ability to expand
and remain competitive is enhanced by this (Sammour, 2017).

Mobile apps

When it comes to customer engagement and revenues, John Lewis's own mobile apps are crucial.
These apps improve the user experience and promote repeat purchases with features like
frictionless checkout and personalized recommendations. The store may also use the data
gathered from mobile apps to better target their marketing, provide more appealing products, and
increase consumer loyalty. In the cutthroat retail industry, mobile apps are a game-changer for
John Lewis. They boost consumer engagement, sales, and long-term company success (O'Regan
& Ghobadian, 2012).

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Social Media

Popular social media sites such as Pinterest, Instagram, Twitter, and Facebook are frequent
haunts for John Lewis. John Lewis. can reach its target demographic, increase sales, and
strengthen its brand identity through the use of targeted advertising, eye-catching visual
storytelling, and interactive content (Cathcart, 2009).

Innovation technology of AI and ML

John Lewis corporation is taking a proactive stance to remain competitive in the constantly
changing digital market with its dedication to innovation and use of technology. John Lewis
remains committed to utilizing advanced technologies such as AI and ML to transform its
company processes and consumer experiences through the formation of strategic alliances like its
relationship with Google Cloud. More than merely a business arrangement, the collaboration
with Google Cloud reflects an innovative spirit intent on using AI and ML to generate significant
results for the firm and its clients. With the help of Google Cloud's cutting-edge AI and ML
capabilities, John Lewis is able to improve its customer service, marketing, and other business
processes (Sammour et al., 2020).

One area where ML and AI could make a huge difference is in improving the user experience.
Data analytics and predictive algorithms can teach John Lewis a lot about its consumers'
preferences, routines, and purchasing behaviors. When providing suggestions, promotions, and
services, the Organisation can think about the customer's interests, needs, and preferences ( Nash
and Sidhu, 2023).

SEO and SEM

It is likely that John Lewis invests in SEO to raise the visibility of its website in search engine
results pages (SERPs). By utilizing relevant keywords, creating high-quality content, and
refining its website structure, John Lewis has the potential to enhance its organic traffic and
improve its search engine ranks. Search engine optimization (SEO) and paid search advertising,
such as Google Ads, are two forms of search engine marketing (SEM) that John Lewis may use
to attract customers who are already interested in the brand's offerings. Faster traffic and
conversions can be achieved with the help of SEM advertising, which supplements the organic
reach that SEO achieves (Lewis, 2013).

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Academic Analysis
John Lewis's successful marketing approach includes their Christmas marketing
communications. The United Kingdom is home to the majority of John Lewis's upscale
department store locations. The establishment of fifty-one new outlets was announced by the
corporation in 2018. John Lewis also acts as a partner enterprise, which he and his employees
own. Because of this, every single employee of the John Lewis department store chain is
essentially an associate of the firm and is therefore entitled to a share of the company's annual
earnings. The allocation usually ranges from 9 to 20% based on annual turnover. Employees at
John Lewis have the opportunity to make a difference in the company, work together to tackle
various problems, and enjoy a competitive retirement plan and insurance benefits. A six-month
vacation is another perk that employees get as a result of the mentioned partnership. The
company uses the term "long leave" to characterize it. In 2018, 51 outlets served 83,000 partners
(workers) throughout 37 department stores, 12 home-based John Lewis stores, and 2 shops at St.
Pancras International and Heathrow Terminal in the United Kingdom (Confos & Davis, 2016).

As the beloved John Lewis and Waitrose brands undergo a digital transition, a new era begins for
the John Lewis Partnership. Providing customers with an even more personalized shopping
experience is at the heart of our endeavor. Under the terms of the partnership, John Lewis will
move a greater portion of its IT infrastructure to Google Cloud. This will provide the retailer
access to cutting-edge tech resources, like advanced AI and ML. From the customer's point of
view, it will help the John Lewis partnership's staff work faster, which means they can provide a
better customer-centric approach and use data-driven insights to improve products and services.
According to Zak Mian, chief transformation and technology officer at the John Lewis
Partnership, one possible application is the John Lewis app's image scanning feature. This
feature would allow customers to share a room they want to decorate with the retailer's home
design stylists (Lewis et al., 2012).

Not only can customers save a bunch of time and energy, but we can also get to know their
unique preferences and likes before their meeting, which lets us provide more tailored
recommendations that might complement their current possessions. The era of fresh
breakthroughs is approaching, and Mian couldn't contain her enthusiasm. The agreement is

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predicted to help the company get closer to launching its highly-awaited Pan-Partnership loyalty
plan in 2024 (Lewis et al., 2012).

A Balance Prospective

Ananda "Andy" Chakravarty, Vice president of retail research at IDC, stated that John Lewis
will be able to utilize the solution's integrated artificial intelligence (AI), machine learning (ML),
and generative artificial intelligence (AI) capabilities in conjunction with Google Cloud. While
several firms are making strides in this field, GenAI and similar AI/ML technologies are only at
the beginning. He expressed his belief that artificial intelligence (AI) would ultimately be
beneficial to the market in an interview with Inside Retail. Businesses that use AI like John
Lewis will have scalable, automated solutions first to market, he claimed. More data will be
available for personalization and market research at John Lewis, he went on to suggest, because
of AI and ML.

"As a result of consumers' willingness to share information, retailers are able to provide shoppers
with personalized product recommendations and the means by which they prefer to make
purchases," he added. With the use of AI tools, John Lewis will be able to improve staff
productivity in areas like as marketing, distribution, mistake checking, customer support, and
more advanced uses in the future, according to Chakravarty (Lindsay et al., 2015).

Return on investment

There will be a lot of pressure on John Lewis to find ways to quantify the return on investment in
the near and medium term for a contract worth $127 million over five years. This, however, is
going to be a challenging task, according to Chakravarty. The return on investment (ROI) is hard
to pin down before the launch, and the objectives for the near and medium term will have less to
do with the effect on the bottom line and more to do with getting the solution up and running and
understood. "ROI will be a nice bonus," he added (Bradley & Estrin, 2012).

In its 2022–23 financial statements, John Lewis declared a loss of $99 million (£78 million), but
the company later revealed further write-downs on the worth of several of its Waitrose outlets,
bringing the total loss to $297 million (£234 million). Nevertheless, it has a solid financial

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position, with $2 billion (£1 billion) in cash and access to a credit facility of $820 million (£420
million).
The Google Cloud acquisition will not, according to Chakravarty, affect the company's recovery
anytime soon. The collaboration's work is more inventive, and while the alliance might have
some short-term benefits for the company, the AI play requires a longer-term commitment and
relationship. He went on to say that this shouldn't hinder the healing process too much (Morris,
2019).

The Bigger Picture

As per Chakravarty (2019), this collaboration will bring John Lewis and Google Cloud into the
limelight, and could even make them feel like they have a "target on their back" in a retail
industry that is currently rushing to implement more automation and AI/ML technologies. "The
biggest obstacle will be managing the transition to working with AI and ML. It's going to be very
different from previous endeavors, and for a company like John Lewis, who have been doing
retail their own way for nearly a century, the change won't be easy," he added. Strangely, this
follows Google Cloud's agreement with John Lewis as its second retail partnership. In November
of last year, it inked a five-year partnership with the global home improvement company
Kingfisher, which bolstered its digital capabilities (Confos and Davis, 2016).

Since John Lewis and Kingfisher make up less than one percent of Europe's retail market, it
would be wise for Google to continue expanding into retail. There will inevitably be growth in
this sector, as Chakravarty noted. In the end, he thinks that Google's ability to bring its
technological capabilities to market more quickly will have the largest long-term impact on John
Lewis. Both the rate of competition and the incorporation of AI and ML into retail capabilities
will accelerate as a result of this. The majority of the AI will be embedded and unseen by the
customer. He did, however, say that businesses who make good use of AI and ML will have and
demonstrate a competitive advantage, especially in terms of profitability (Bradley & Estrin,
2012).

Conclusion
John Lewis's utilization of these digital marketing communication platforms aligns with modern
marketing principles and best practices. The Omni channel approach satisfies modern consumers

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by facilitating frictionless transactions across all of their chosen channels of purchase. John
Lewis uses AI and ML technology to improve customer contact and customization, which in turn
strengthens the company's connections with its audience.

Academic concepts such as IMC, digital transformation, and customer-centric marketing are
consistent with John Lewis's strategy. Digitalization is crucial to the growth and competitiveness
of the ever-changing retail sector, which the retailer reflects in its emphasis on tech and
innovation.
John Lewis is obviously one step ahead of the competition when it comes to the strategic use of
digital marketing communication channels for customer satisfaction, business growth, and
maintaining its leading position in the retail industry.

Part B

Relationship Marketing Strategy of Lewis

It is common practice for companies to lay out their strategy in their mission statements in order
to give employees and other internal stakeholders some guidance. The unique ownership
structure of John Lewis has been a focal point and a driving force behind the company's success.
Employees formed a cooperative and ran it from 1929 forward. John Lewis can't expect to reap
the most benefits from its investments unless it first maintains or improves its market position,
which it can only do by creating a positive workplace for its employees (Higgins, 2018).

Three pillars form the basis of John Lewis' marketing strategy: partners (owner personnel),
clients, and earnings. The three main objectives of John Lewis's business plan are to maximize
the benefit to partners, take advantage of demand opportunities, and expand effectively. John
Lewis is able to remain level-headed, ambitious, and fearless in their pursuit of company vision
because to these three strategic priorities (Confos and Davis, 2016).

Increase Partner Advantages

John Lewis places a premium on inspiring its business partners. Members of a co-owned
association tend to be happier and more productive overall. Thanks to everyone's efforts, the
company has become more efficient, which has given it a competitive advantage (Higgins,
2018).

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Potential of the Market

The second goal of John Lewis's strategy is to capitalize on demand possibilities. John Lewis is
able to maintain relationships with current customers and attract new ones by setting and
achieving these goals. To achieve these objectives, John Lewis closely monitors consumer
feedback and adjusts its approach appropriately. In terms of affordable pricing, convenient
payment options, and product origin details, they listen to their consumers (Manko et al, 2023).

By reducing carbon emissions and bringing up concerns about ethical sourcing, John Lewis
hopes to boost its clients' sustainability reputation. As a result, the company's marketing efforts
are now focused on strengthening relationships with current consumers rather than acquiring new
ones in an attempt to boost brand loyalty (Mayfield et al., 2011).

Growth Efficiency

The third objective of John Lewis is to maximize efficiency. The company's growth over the past
decade has been phenomenal, and its expansion plans are to keep going strong. While John
Lewis's bottom line grows in tandem with the market, the rising cost of doing business is eating
into their profit margins. So, John Lewis uses cost management programs and makes careful
investment decisions to run the company efficiently and share earnings with his partners. The
grocery chain run by John Lewis has the highest sales volume in the UK. With John Lewis, you
can enjoy both gains and extra benefits. John Lewis's success is heartening because it shows that
the retail sector can overcome challenges including falling real incomes, more competition, and
online shopping. By providing innovative solutions (such as new store formats and an expanded
online offering), John Lewis is committed to better understanding its customers' demands
(Higgins, 2018).

John Lewis stands head and shoulders above the competition in Britain when it comes to sales
volume. John Lewis members get a cut of the company's earnings along with additional benefits.
John Lewis has done exceptionally well despite the fact that the retail industry as a whole has
been struggling owing to falling consumer incomes, more online purchasing, and fiercer
competition. This success could be attributed to John Lewis's dedication to meeting client needs
through innovative solutions, such expanding its online presence and launching new format

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stores. Additionally, the company has pledged to better understand its clients' requirements and
desires.

Its devoted customer base is the single most critical aspect of its success. As a result, happy
customers will spread the word about your company. As part of their mission to ensure customer
satisfaction, John Lewis has implemented a highly efficient Customer Relation Management
system that provides valuable feedback to customers (Shipper and Hoffman, 2020).

Relationship Strategy with Customers

John Lewis Use following Relationship Marketing Strategies:

Prioritizing Customer Services

Here we have John Lewis's first strategy. The importance of excellent customer service cannot
be overstated; in fact, half of all consumers would go elsewhere if they had a single negative
experience. Providing first-rate service to customers shows that you value their requirements
more than simply their money, which is why relationship marketing relies on it. Standard
operating procedure training should be mandatory for all employees that interact directly with
customers. Customer service representatives are expected to maintain a courteous demeanor
regardless of how irrational the customer may be. A manager-level understanding of how to calm
down irate callers is essential (Cathcart, 2009).

On the other hand, these are fundamental principles that clients anticipate experiencing from a
company. Through the process of personalizing the entire experience and taking a more
proactive approach, relationship marketing takes things to the next level. Your consumers, their
possible pain areas, and the questions they might ask are all things that you need to have a
comprehensive understanding of. John Lewis makes use of the most up-to-date resources in
order to provide excellent customer service. These tools include a customer relationship
management system (CRM) that makes client information easily accessible and a call
management system that ensures prompt responses to requests (Ryan, 2007).

Long Time Engagement

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In relationship marketing, Lewis goes above and beyond simply trying to sell people things.
Furthermore, they aim to foster a more personal connection with clients by emphasizing their
brand values and position as a leader in the industry. Lewis has to make their website and social
media pages as easy to use as possible so customers can get in touch with them. The numerous
available communication methods make it easy for clients to communicate with them, despite the
high level of competition. If you want your business to thrive, it's not enough to have a strong
presence across several platforms; you also need to create content that people can't stop using.
The more consumers interact with the brand, the more the company will learn about their needs,
which means greater room for personalization. John Lewis could do this by sharing stories about
the company's community involvement and encouraging customers to do the same. They could
even invite their most engaged followers to join the company's partner marketing program and
promote it on their channels. Since relationship marketing encompasses the entire customer
journey, Lewis should provide value to both new and existing customers. Focus on building
brand awareness rather than immediate conversions; customers may not be ready to buy now, but
they will remember you. John Lewis could do this by sharing stories about the company's
community involvement and encouraging customers to do the same. They could even invite their
most engaged followers to join the company's partner marketing program and promote it on their
channels. Since relationship marketing encompasses the entire customer journey, Lewis should
provide value to both new and existing customers. Focus on building brand awareness rather
than immediate conversions; customers may not be ready to buy now, but they will remember
you (Adom et al., 2023).

Social Media Marketing

Social media is a great place to promote relationships since there is so much room for debate.
Making a following online is as simple as posting visual content often, demonstrating your
abilities, and interacting with your audience. You can potentially reach a lot more people if you
form a partnership with popular people and ride on their popularity. John Lewis promotes their
company on social media platforms such as Facebook, Instagram, LinkedIn, and Twitter. Posting
engaging content like product promotions, behind-the-scenes glimpses, and customer anecdotes
on a regular basis helps keep brand recognition high. John Lewis actively engages its audience
on social media by swiftly responding to criticisms, messages, and mentions. Their emphasis on

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two-way communication fosters a sense of community and gratitude among their clientele. John
Lewis uses social media to assist their customers. Customers who reach out to them on social
media may anticipate prompt responses to their inquiries, resolution of issues, and provision of
help. This proactive approach to customer care increases both customer happiness and trust.
Exclusive sales, content, and promotions are common ways that John Lewis shows appreciation
for its social media followers. This creates a community among followers and encourages
customers to interact with the brand on social media. John Lewis uses social media interactive
campaigns to get people involved. These initiatives serve to both amuse and engage the
audience, whether through polls, interactive storytelling, or contests (Adom et al., 2023).

Email Marketing

John Lewis uses a number of criteria, including demographics, online behavior, and past
purchases, to divide their email addresses into several divisions. Now that they've segmented
their customers, they can tailor their emails to each individual's tastes and interests. John Lewis
often emails its customers about deals, discounts, and other promotions. Customers are
encouraged to make purchases and remain engaged by offering significant rewards. John Lewis
leverages consumer data and behavioral insights to provide email subscribers with personalised
product suggestions. By taking into account your preferences, previous purchases, and current
browsing activity, personalized product recommendations can greatly enhance the likelihood of
finding and buying just what you need. To strengthen the customer relationship, John Lewis uses
transactional emails such as order confirmations, shipping notifications, and delivery updates.
These emails not only spread critical information, but also allow you to communicate with
customers and promote your business (Confos and Davis, 2016).

Loyalty Program

Making clients feel appreciated is easy with a loyalty program. Their appreciation for their
patronage shows how much you value their contribution to your company. One further technique
to get new consumers involved (and to buy from you again) is via a reward plan. In keeping with
its mission to increase consumer involvement and happiness, John Lewis has instituted a points-
based loyalty program in which consumers earn points for purchases and can then use those
points to get discounts. In addition, a referral incentives program encourages consumers to
spread the word about the business, which increases its visibility, credibility, and community.

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These efforts demonstrate John Lewis' customer-centric organizational strategy by strengthening
customer relationships, fostering loyalty, and promoting sustainable growth (Nash and Sidhu,
2023).

Utilize Survey

John Lewis's customer-centric attitude is shown in their relationship marketing strategy, which
involves actively seeking out and acting upon client feedback. Customer satisfaction surveys,
social media polls, extended surveys, and other types of customer feedback let John Lewis
demonstrate its concern for its customers. The organization can demonstrate its appreciation for
its customers' experiences and foster a sense of teamwork by emphasizing the importance of
customer feedback. John Lewis ensures their surveys are concise and contain only the questions
that will help them enhance their products, services, and overall customer experience in order to
make client feedback collection easier. By incorporating feedback into their strategic and
operational decision-making processes, John Lewis underlines their dedication to creating long-
lasting relationships built on trust and mutual understanding. The consumer experience is
enhanced in this way (Fernie, 2015).

Content

Compared to more traditional types of paid advertising, this marketing tactic often generates
more leads for John Lewis since it appears less overtly promotional. Regardless of overt
sponsorships, the content of well-known industry experts or influencers still carries more weight
with customers due to the impression of neutrality it conveys. Strong customer relationships and
useful insights into how to maximize the company's offerings are the results of John Lewis's
careful targeting of its content to the interests and needs of its target audience. By catering to its
consumers' individual tastes, John Lewis demonstrates its concern for them. By regularly posting
interesting content across many channels, John Lewis may raise its brand's profile and influence
within its target demographic. This is particularly the case when the material in question is easily
shareable (Adom et al., 2023).

Low Pricing Strategy

Lower pricing is helping newcomers like Lidl and Aldi in the UK compete with Waitrose and
John Lewis in the food sector. Modern supermarkets are offering a wider range of products at

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incredibly low prices, including electronics, household goods, and clothing. Since department
stores continue to be John Lewis' main business, there is no risk from new rivals. This is because
it takes a significant financial commitment to start and run a profitable chain store. The retail
sector has matured, which is another reason why the threat of new rivals has diminished. Every
single retailer on the planet is competing for a piece of the market. They will use every legal
tactic at their disposal to counter any new rivals. The main reason for the reduced threat of new
rivals is the lack of industry knowledge among investors, particularly foreign investors. The
ignorance of the competition lessens the threat they offer (Shipper and Hoffman, 2020).

Bargaining power of buyer

Examining the negotiating strength of John Lewis's clientele, one finds that it is rather strong,
particularly when taking into account the advantages of the "never knowingly undersold"
guarantee. Switching doesn't cost much because there are plenty of possibilities. It is expected
that the British economy will shrink. This forces retailers to reduce their prices. Retailers who
make advantage of it also need to be more aware of what customers need. Because of all the
factors mentioned above, John Lewis's customers have a lot of negotiation leverage (Nash and
Sidhu, 2023).

Bargaining power of supplier

Customers of John Lewis do not have the same negotiating power as his suppliers do. Their
suppliers are not very strong negotiators. John Lewis, one of the largest retailers in the UK, has a
sizable customer base and a high rate of customer churn. Because it will expose them to a large
consumer base, every supplier wants their products to be on John Lewis' shelves. The second
reason for the suppliers' diminished bargaining power is that, in contrast to other stores, John
Lewis is not totally reliant on its suppliers. For example, John Lewis has a textiles section that
purchases raw materials and manufactures fabrics, curtains, and soft furnishings under its own
brand name (Shipper and Hoffman, 2020).

Recommendations
Here are a few suggestions to help John Lewis make better use of digital technologies to engage
customers more and earn their loyalty:

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Personalized Customer experience

Continuously provide highly customized experiences across all touchpoints, including online and
in-store platforms, by utilizing artificial intelligence and machine learning technology. When
designing features like tailored content, customized promos, and product suggestions, it's
important to consider the user's tastes and past interactions (Higgins, 2018).

Advance Visual search and augmented reality

Build upon the case study's suggestion to improve the purchasing experience by adding an image
scanning feature. Give clients the option to visually test out things in their own rooms before
buying them using augmented reality tools and powerful visual search capabilities. Customers
will be far more satisfied and fewer will return products if this is done (Ahmed et al., 2023).

Omni Channel integration

Improve the integration of offline and online channels to create a seamless Omni channel
experience. Make sure all channels provide the same product descriptions, pricing, and
promotions, and make it easy for customers to use features like BOPIS (buy online, pick up in
store). Customers will be more loyal to the brand as a result of this integration since it will be
easier for them to engage with the business across various platforms (Nash and Sidhu, 2023).

Enhanced Loyalty Program

Users can earn loyalty points for their purchases and other activities on any of John Lewis's
digital platforms, such as JohnLewis.com, Waitrose.com, or mobile apps. Promoting time-
sensitive deals, tailored rewards, and exclusive perks can help you attract and retain customers
(Confos and Davis, 2016).

Data Analytics and Insight

It is essential to regularly assess consumer data and feedback to have a deeper understanding of
their desires, requirements, and preferences. Utilize state-of-the-art analytics technologies to
uncover trends, anticipate customer demands, and fine-tune products. Improve marketing

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strategies, product lineups, and customer satisfaction by making greater use of this data (Kollewe
and Butler, 2015).

Investment in emerging technology

Invest in state-of-the-art tech such as chat bots, voice commerce, and AI-powered customer
assistance so you can stay up with the latest tech sector advances. Stand out from the competition
and enhance the shopping experience by taking a chance with cutting-edge electronics at John
Lewis (Allen et al., 2001).

Customer education and engagement

Give careful consideration to educating customers about the value of the digital resources
provided by John Lewis's platforms. Through the provision of lessons, guidelines, and engaging
experiences, maximize the use of these technologies for your clients and encourage their
acceptance (Allen et al., 2001).

Conclusion
John Lewis has accomplished a great deal in its digital transformation journey because to the
partnership with Google Cloud. The long-term objective of the business is to foster client loyalty
by the provision of individualized experiences. John Lewis intends to employ Omni channel
integration, AI, and ML to enhance consumer engagement across all touchpoints. Keep investing
in new innovation and focus on customers if you want to maintain your competitive advantage
and establish your position in the retail market moving forward.

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