Customer-centric retailing – Now you know what ... - Roland Berger

Contents3 EditorialJochen Hiemeyer Patrick Müller-Sarmiento Thorsten de Boer4 Relevant trends for Europe'sretailers"Put your customers at the heart of your company."Europe's retailers face major upheavals: an aging population, changing shoppinghabits, fluctuating raw materials prices and declining purchasing power.In short, the customers and their social environment are changing more thanever before.Sir Terry Leahy, chief executive of Tesco, the British supermarket chain, just seesthis as another incentive: "When our customers change, we change with them."However, if you really want your company to go down this joint road, it's crucialto have information about your own customers. And there's a lot more to suchknowledge than last year's sales figures, a bit of market research, and somesociodemographic data. The aim must be to understand the customers'purchasing patterns and needs in their entirety.For many years this was practically impossible. But now there is a tool availablethat can give you access to this detailed customer knowledge: Customer-centricretailing (CCR). You can use CCR to strategically enhance formats and to optimizeyour range for tactical reasons, as well as in pricing and advertising. Firstof all you need clearly defined, homogeneous customer segments. Next, youcalculate the degree to which each customer segment's sales potential is beingreached and then develop strategies to improve on this result. As a retailer, ifyou understand the needs of your customers better and know where there aregaps in your range, you can be more targeted and effective when you invest inhoning your expertise in the fields of range and pricing.Roland Berger Strategy Consultants' retail experts have advised many companiesand successfully implemented numerous projects on this subject. Thisbrochure is based on the experience we have gained with these projects. Wewould be delighted to discuss the subject with you. Please feel free to writeor to call us. We look forward to your feedback.Jochen Hiemeyer Patrick Müller-Sarmiento Thorsten de BoerPartner Partner Project Manager6 Customer-centric retailingThis business approach canincrease the benefits for thecustomer7 CCR: the 8 key steps8 Target-customer segmentation10 An example: Detergents11 Advantages/effects of CCR12 Before and after: A comparison13 Interview with Nitin Sanghavi,Professor of Retail Marketing atManchester Business School16 What other people think:European retailers' experiencewith CCRImpressumPublished by:Roland Berger Strategy Consultants GmbH,Consumer Goods & Retail Competence CenterMies-van-der-Rohe-Straße 6, 80807 MunichResponsible:Jochen HiemeyerEditors:Roland Berger EditingStephan Schlote, cintus mediaImages:Mauritius Images, CorbisLayout:RB_DesignTeamPrinted by:Girodruck, Hamburg© only with the publisher's permission3