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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Contents3 EditorialJochen Hiemeyer Patrick Müller-Sarmiento Thorsten de Boer4 Relevant trends for Europe'sretailers"Put <strong>you</strong>r customers at the heart of <strong>you</strong>r 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 <strong>you</strong> really want <strong>you</strong>r company to go down this joint road, it's crucialto have information about <strong>you</strong>r own customers. And there's a lot more to such<strong>know</strong>ledge 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 <strong>you</strong> access to this detailed customer <strong>know</strong>ledge: <strong>Customer</strong>-<strong>centric</strong><strong>retailing</strong> (CCR). You can use CCR to strategically enhance formats and to optimize<strong>you</strong>r range for tactical reasons, as well as in pricing and advertising. Firstof all <strong>you</strong> need clearly defined, homogeneous customer segments. Next, <strong>you</strong>calculate the degree to which each customer segment's sales potential is beingreached and then develop strategies to improve on this result. As a retailer, if<strong>you</strong> understand the needs of <strong>you</strong>r customers better and <strong>know</strong> where there aregaps in <strong>you</strong>r range, <strong>you</strong> can be more targeted and effective when <strong>you</strong> invest inhoning <strong>you</strong>r expertise in the fields of range and pricing.<strong>Roland</strong> <strong>Berger</strong> 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 <strong>you</strong>. Please feel free to writeor to call us. We look forward to <strong>you</strong>r feedback.Jochen Hiemeyer Patrick Müller-Sarmiento Thorsten de BoerPartner Partner Project Manager6 <strong>Customer</strong>-<strong>centric</strong> <strong>retailing</strong>This 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:<strong>Roland</strong> <strong>Berger</strong> Strategy Consultants GmbH,Consumer Goods & Retail Competence CenterMies-van-der-Rohe-Straße 6, 80807 MunichResponsible:Jochen HiemeyerEditors:<strong>Roland</strong> <strong>Berger</strong> EditingStephan Schlote, cintus mediaImages:Mauritius Images, CorbisLa<strong>you</strong>t:RB_DesignTeamPrinted by:Girodruck, Hamburg© only with the publisher's permission3