dunnhumby forrester webinar 15 11 2016

FATEMEH KHATIBLOOPrincipal Customer Insights AnalystForrester@fatemehx2

Fatemeh serves Customer Insights Professionals, with a focus on the shifting consumer data ecosystem, including how privacy issues affect marketing and how customer preference centers improve engagement. Her seminal research on personal identity management (PIDM) describes how consumers will manage the sharing of their personal data with each other and with businesses. Her report "Adaptive Intelligence" defines a framework for privacy-compliant data sharing between organizations to gain insight, reduce risk, and increase profitability.

MARC FISCHLIChief Client Officer dunnhumby@fischlimarc

Marc is responsible for dunnhumby’s retail consulting business across all regions. He joined dunnhumby in 2007 to work in international expansion and new business development. Prior to this, Marc worked on the development of Tesco’s Operating Model and its deployment to China, Japan and the US. He has led two of Diageo’s country business units (France and Poland), and managed Diageo’s Asian strategy team, as well as working as a consultant for Marakon Associates. He obtained an MBA from the London Business School in 1997.

Bringing Customer-Centricity to Retail

Fatemeh Khatibloo, Principal AnalystNovember 15, 2016

© 2016 Forrester Research, Inc. Reproduction Prohibited 4

›Self-less

›Loyal

›Predictable

›Forgiving

›Selfish

›Fickle

› Impulsive

›Merciless

23%of consumers do

price checks in-store

› Source: Forrester Report “The Truth About Showrooming [119021]” October 15, 2014, North American Consumer Technographics Online Benchmark Survey 2014, Q2 2014 Forrester/Internet Retailer B2B Buy-Side Survey

i 26%of consumers expect the

information or service they need immediately and in context

56% of B2B buyers expect to make the majority of work purchases online

52%of consumers say that price/value is

more important than brand

60% Increase in consumer online

spending 2012 to 2015

The data bears this out…


We’ve entered the age of the customer


Entitled customers are changing the game


Revenue growth depends on meeting their demands


But retailers face unique challenges on the road to customer-centricity


I think most retailers today are paying lip service to customer-centricity, but they are not really changing their model. They are still product-centric.

- Marketing Director, UK kitchenware and home improvement retailer


1. Retailers still treat CX tactically› The top business initiatives in large global retail firms are

still focused on operational efficiency• Only 9% of respondents ranked “improving customer experience”

number one of their top priorities this year

›Retail hasn’t transformed from product-led to customer-led

› There’s another fundamental problem too…


2. CEOs have delegated this critical work

CMO / SVP of marketing

CEO

SVP of eCommerce / online sales

CIO / SVP of IT

Chief customer officer / SVP of customer experience

CTO / SVP of technology

Chief digital officer / SVP of digital

55%

26%

7%

4%

4%

3%

3%

“Who sets the vision and strategy for customer-centricity in your organization?”

Base: 200 customer experience, analytics and marketing professionals at global grocery/select retailers Source: A commissioned study conducted by Forrester Consulting on behalf of Dunnhumby, April, 2016


3. Retailers have a data problem – but it’s not the one you think


3. Retailers have a data problem – but it’s not the one you think

“How mature do you consider your organization as compared to industry peers with respect to the following?”

Base: 200 customer experience, analytics and marketing professionals at global grocery/select retailers Source: A commissioned study conducted by Forrester Consulting on behalf of Dunnhumby, April, 2016


3. Retailers have a data problem – but it’s not the one you think›Data, data everywhere, but not a drop to…

• 28% of retailers say that their inability to effectively use data is a critical or serious barrier to customer centricity efforts

• Nearly two-thirds say that managing data and inability to create a single customer view hamper their ability to be customer centric

› A major root cause: 66% of retailers struggle with a lack of internal analytics resources


“We are still far away from mature customer-centricity. We do very limited customer recognition and most of the time only segment customers. Our current efforts do not satisfy customer-centricity.”

- VP Marketing, Large Chinese Grocery/Supermarket


39%

don’t have a roadmap or plan to resolve.

Lack of internal analytics/data science resources

21%

don’t have consensus on the need to resolve this challenge!

4. Retailers don’t have a plan to solve these problems


33%


Inability to measure the value of customer analytics efforts

22%




41%


Utilizing customer data effectively

15%




29%


Resolving conflicts between channel owners

21%




“In the next 3 – 5 years, retailers that focus on customers will be the ones that survive; those that focus on the bottom line, won’t.”

- Director of Marketing, UK convenience retail chain


It’s time to accelerate your customer-centricity journey


Four steps to start with now1. Measure your existing customer-centricity efforts

• Make “customer value” a key metric instead of (or alongside) campaign performance

• Lose “last touch” attribution, and begin measuring the whole engagement cycle



2. Use those metrics to attract executive attention• Tie KPIs to customer goals, not channel goals

• Bring merchants, trade, and product managers together

• Pilot programs that let you “own” an entire customer lifecycle – not just a customer segment



2. Use those metrics to attract executive attention

3. Create a plan to evolve your customer-centric maturity• Start centralizing customer insights -- 60% of firms operating

at a “strategic” level of customer-centricity are centralized

• Assess your data and technology gaps, and build a five-year roadmap – but build it so its future-proof

• Tie opportunities to investments and prioritize accordingly



2. Use those metrics to attract executive attention

3. Create a plan to evolve your customer-centric maturity

4. Identify partners to support your efforts• Consider reducing the number of vendors you work with, but

deepen the partnerships you keep

• Use partners wisely: to bridge resource gaps, to vet new technologies, and to help make the case for investment

forrester.com

Thank you

Fatemeh [email protected]

FATEMEH KHATIBLOOPrincipal Customer Insights AnalystForrester@fatemehx2

Fatemeh serves Customer Insights Professionals, with a focus on the shifting consumer data ecosystem, including how privacy issues affect marketing and how customer preference centers improve engagement. Her seminal research on personal identity management (PIDM) describes how consumers will manage the sharing of their personal data with each other and with businesses. Her report "Adaptive Intelligence" defines a framework for privacy-compliant data sharing between organizations to gain insight, reduce risk, and increase profitability.

MARC FISCHLIChief Client Officer dunnhumby@fischlimarc

Marc is responsible for dunnhumby’s retail consulting business across all regions. He joined dunnhumby in 2007 to work in international expansion and new business development. Prior to this, Marc worked on the development of Tesco’s Operating Model and its deployment to China, Japan and the US. He has led two of Diageo’s country business units (France and Poland), and managed Diageo’s Asian strategy team, as well as working as a consultant for Marakon Associates. He obtained an MBA from the London Business School in 1997.