Customer-centric retailing â Now you know what ... - Roland Berger
Customer-centric retailing â Now you know what ... - Roland Berger
Customer-centric retailing â Now you know what ... - Roland Berger
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CUSTOMER-CENTRIC RETAILINGHOW CUSTOMER-CENTRIC RETAILING CAN CHANGE YOUR BUSINESSBEFOREAFTERUNDERSTANDINGTHE CUSTOMERRANGEMANAGEMENTPRICEMANAGEMENTPROMOTIONALBUSINESS/MARKETING/DIRECT MARKETINGMANAGEMENTMANAGEMENTLittle understanding of the customerstructures, purchasing patterns or needs.If customer segmentation exists at all, it isprimarily based on sociodemographic data.Range decisions are based primarily onclassic indicators such as sales revenues,sales volumes and customer reach.Traditional price strategy: decisions areclearly focused on top-selling items acrossall categories; competitors' prices arematched.Selection of products for advertisingcampaigns and promotions is very muchindustry-driven. Internal management isprimarily geared to revenue and volumetargets. Specific customer interests arehardly taken into account.Purchasing, category management, salesand marketing use different KPIs, some ofwhich are not properly integrated. Marketingand consumer research do not interactwith category management.Clearly defined customer segmentationbased on actual purchasing patterns.Clear idea of which customer segmentbuys <strong>what</strong>, when and why.Range decisions and merchandisingare consistently geared toward customerneeds. Decisions on product chronology,shelf arrangement, listing and de-listingare based on quantifiable customerbehavior patterns.Pricing decisions are made on the basisof quantitative analysis. Pricing is basedon baskets of goods for specific customersegments, their competitive price indices,and the customer segments' price sensitivities.Promotional products are consistentlygeared to the target-customer segments –this can significantly improve the attractivenessand profitability of promotionalbusiness.<strong>Customer</strong>-related targets are definedalong the entire value chain; customerbehavior patterns are systematicallyassessed; the effectiveness of the rangeand processes is improved to the benefitof target customers.12