The Retailer SUMMER 16_v7

customer focus

Five transformational themes emerging from the USA Customer Experience Leaders

Craig Ryder Customer Experience Director KPMG Nunwood

THE RECENTLY PUBLISHED KPMG NUNWOOD USA CUSTOMER EXPERIENCE EXCELLENCE ANALYSIS HIGHLIGHTS THAT THE AMERICANS REMAIN AHEAD OF THE UK IN DELIVERING OUTSTANDING CUSTOMER EXPERIENCES (CX). In fact, best estimates suggest the UK is as much as three years behind the USA, with the gap particularly wide in the grocery sector. So why has UK grocery fallen so far behind in terms of CX and what can we learn from American organisations who seem to be doing a better job? A triple onslaught of changing shopping habits, a double dip recession and the explosive growth of limited assortment discounters and high street value retailers have created an environment where the traditional UK Big 4 Grocers (who still account for over 70% of the market) have spent much of their energy trying to stem share loss and negative like-for-like sales - a problem that few in the industry saw coming. Looking to the US for ideas to inspire a British grocery rebirth, several themes emerge. On the surface we see the usual suspects; sampling programmes, highlighting fresh food credentials, cookery schools, clever apps and community involvement - all elements that seem to work for the Americans. Most of these have been around for some time but tend to land in a lacklustre fashion over here. Sampling programmes, for example, tend to be seen as a revenue stream rather than a source of excitement and inspiration. Great CX is the Sum of Many Small Things In a world of 24/7 social media, we share stories about our experiences of a brand. But brand is no longer what the marketing department tells the customer it is; it’s the sum total of all the experiences your customers share, like and forward to their networks. Customers no longer believe advertising claims. If they want to know what you offer, it’s likely they’ll find out what the crowd thinks first. All of this means it’s important for retailers to understand the ‘outside in’ customer journey, and design the experience in a way that the frontline can deliver consistently. So, digging deeper into the USA’s CX success, are there lessons to be learnt at a more structural level?

to create something unique, with the power to keep customers coming back. A great example of this in the hospitality sector is Doubletree’s fresh cookie on arrival – a low cost treat that customers talk about every time they discuss the brand. Digital Innovation KPMG Nunwood’s work across multiple B2C sectors suggests that a third era in digital innovation is about to dawn. In this new era, innovation will be driven by leaders who have a deep understanding of the customer, and objectives will be formulated purely by the need to improve CX. This is different to the current status quo where driving cost savings or simply the adoption of technology for the sake of technology lies behind digital development. USA retail is currently trialling ‘digital shelf’ technology that offers powerful experiential benefits. You may recall the UK retail industry trialling LCD shelf edge technology a decade ago. This was designed to save money but the customer experience suffered. Pricing was less clear with the location of special offers difficult to identify from afar. In comparison, the latest US iterations of this digital innovation include customers being able to link the shelf edge display network via mobile apps to shopping lists. This delivers huge benefits to shoppers; items missed en route around the store can be highlighted and, where a product cannot be located, the shelf edge labels can flash a bright LED beacon. Other uses already being developed include the ability to highlight all products within a category meeting certain criteria (e.g. nut free biscuits within a range) and even show short instructional videos showcasing how best to use a product. Customer Purpose As consistently highlighted in KPMG Nunwood’s CX Excellence studies over the past seven years, motivated and focussed staff play a vital role in customer experience. This is especially the case in retail, where the majority of brand interactions are the preserve of colleagues earning close to minimum wage. Businesses with a well-articulated statement of purpose benefit from a workforce who can go about their day-to-day work with clarity, focus and belief in the value of their efforts. Of course, such a statement alone cannot deliver a change in behaviour, it must also be combined with the permission for staff to act in a way that protects and enhances the experience of the brand. As such, the art of a successful statement of purpose is that it must resonate with front line staff, with customers, as well as with senior management – and with all these parties understanding the guiding principles.

Within the series of micro-experiences that make up a typical shopping trip, there must be a sufficient number of ‘signature actions’

12 | summer 2016 |

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