Who is customer-centric in SA?
With economic conditions in South Africa likely to remain weak, the apparel retail industry growth forecast for 2018 is muted. In addition, the entrance of international brands has added further challenge for local incumbents.
Against this backdrop, a recent dunnhumby Customer-Centricity Index (CCI) survey focusing on apparel retailers once again underscores the importance of putting customers at the centre of your business. More than ever, the retailers that understand their customers’ needs best and how to service them are the ones that will remain successful.
As the leading global customer data science company, with almost 30 years of experience working with retailers across the world, dunnhumby has been able to identify 7 pillars (Affinity, Communication, Range, Rewards, Price, Promotion, and Service) that customers highlight as the aspects of the shopping experience that matter most to them. The dunnhumby survey establishes a CCI score per apparel retailer and then maps which of the 7 pillars drive each retailer’s respective CCI score.
1. Affinity - A strong connection between the store and the customer. Help customers to get everything that they need and having their expectations surpassed.
2. Range - Having the right products and a strong variety to meet customers’ needs. The best companies don't try to carry every possible product but make sure to carry the products their customers want.
3. Service - Making the shopping experience easy, enjoyable, and convenient. The best companies make customers want to share their positive experiences.
4. Promotions - Leveraging promotions on the items that are most appealing and often purchased by your current customers. The best companies promote the products that matter most to their customers.
5. Price - Providing prices that are perceived to be in line with what the customer is looking for, on the products they purchase most often. The best companies don’t have to be the price leaders but need to have pricing that customers see as fair.
6. Communications - Personalising the message to customers, based on what they buy and delivering it in a way they like. The best companies provide tailored, relevant communications based on customer preferences.
7. Rewards - Rewarding and recognising your customers in a consistent way that is relevant to how they want to be rewarded. The best companies reward customers in the ways they prefer for how they shop.
According to the recent CCI survey, the most ‘customer-centric’ apparel retailers were a mix of local and new international entrants, with H&M and Woolworths sharing the honours with strong performance on several pillars, namely, Range, Price, and Promotion.
Other leading retailers included:
Affinity – Woolworths, Fabiani, Country Road
Communication – Woolworths, Sportscene, Edgars
Price – Pep Stores, Mr Price Sport, Pick ‘n Pay Clothing
Promotion – Woolworths, Edgars, Jet
Range – Woolworths, Cape Union Mart, Sportscene
Rewards – Pick ‘n Pay Clothing, Edgars, Woolworths
Service – Woolworths, Fabiani, Sportscene
Article Credit: Bonfire Media
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