The retail landscape is changing. Shifting expectations, technological innovations, and new competitors are leaving retailers challenged to stay relevant with current and future customers. We are in a time of a Perfect Storm, where geographic and geopolitical, demographic and technological revolutions are colliding to create this unparalleled transformation. The retail landscape is changing, yet too many are still stuck in an age old "Boomer Strategy", successful in the past, but not meeting the needs of Generation X and definitely not Millennials today. Over the last decade new, disruptive business models have turned the industry upside down. Digital giants have redefined what it means to be "connected" and changed expectations for customer experience, delivery and personalization. Amid these shifts, we've watched some iconic brands fail to adapt and ultimately go the way of the dinosaurs.
Only 26% of Canadians see retailers as delivering excellent* customer experience.
*A score or 8/10 or higher.
Understanding your customer
Customer choices have always been influenced and governed by multiple factors, but never has this been as complex and subject to disruption as it is today. The Five Mys framework helps identify what customers value in experience, understand the moments that matter to them, get smarter about the connections that contextualize their lives, and learn about the trade-offs they make with time and money. The Five Mys are My, motivation, My attention, My connection, My watch and My wallet. How these factors work in concert across an individual's different life stages and events is key to unlocking real insights and predicting what will drive the customer of tomorrow.
Designing customer experience excellence
Based on nearly a decade of research and more than two million evaluations across multiple markets, we have identified and validated six fundamental components of every great customer experience. The Six Pillars are inextricably intertwined and, when combined, provide a powerful mechanism to help decision makers understand how a strong customer strategy is executed. They are Personalization, Integrity, Expectations, Resolution, Time and effort and Empathy.
Developing a winning retail strategy
Winning in today's retail landscape comes down to truly understanding your customers; their motivations, their frustrations and their expectations, and designing experiences that cater to their needs today and anticipate their demands tomorrow. In order to be able to do this, retailers need to continuously collect data and drive insights that will inform your customer strategy.
For more insights on the Canadian customer, their habits, and how retailers can adapt to meet the needs of this market today, and in the future, read the full report.
Ready to start shaping your customer strategy for the future? So are we. Let's do this.
All statistics quoted are from 2018 Me, my life, my wallet survey results.