The retail sector remains a fiercely competitive, low margin sector. Retail executives are therefore very focused on making the right investments to drive growth. Over the last couple of years, there has been an increased discussion on customer experience providing a competitive differentiator. This study establishes the financial impact of customer centricity on retail performance, and creates a framework for determining what elements of customer interaction drive the greatest return. The research reveals that leaders on the dunnhumby Customer Centricity Index (CCI) enjoyed market share growth of seven percent on average, while laggards suffered a one percent decline. Not all elements of customer experience have an equal part to play in influencing likelihood to recommend and repurchase. In-store experience, price and promotions are the key drivers, and this is generally consistent across countries. The study also finds that being highly selective and excelling in one or two key areas is a greater route to success than attempting to win at everything. There is no “one size fits all” approach. Key to becoming a CCI leader is understanding what your brand means to customers, what you want to stand for, and relentlessly executing against this.
Julian Highley currently serves as the Commercial Product Director Customer Knowledge and Category Management at dunnhumby. Julian leads the product strategy and direction for dunnhumby’s Customer Knowledge and Category Management analytics products which help brands and retailers grow their businesses through better insight. He joined dunnhumby in 2008, setting the strategy for identifying global trends and heading up many retail-focused studies, including dunnhumby’s Global Customer Centricity Index. Prior to this Julian worked at SAP, specializing in customer analytics for retail, CPG and banking. His background in marketing sciences and customer behaviour started at IRI, where he developed bespoke statistical models for CPG brands. Julian holds a degree in Economics from the University of Bath. Julian can be contacted via email at Julian.firstname.lastname@example.org
Akshay Nigam currently serves as Senior Global Trends Analyst at dunnhumby. Akshay leads the analysis for dunnhumby’s Global Trends and Thought Leadership. He has developed an expertise in the areas of customer strategy and customer centricity, supporting dunnhumby’s mega trends work across Convenience, Multi Channel and Health. Akshay holds a degree in Electronics and Communications Engineering and has spent almost seven years developing his retail analytics skillset in roles supporting Online Retail, Digital Media, Customer Strategy and Customer Knowledge. Akshay can be contacted via email at Akshay.email@example.comJOURNAL