Retailers, whether high frequency, mass, specialty or big box continue their battle for market share. It has become more and more evident that consumer expectations of a frictionless experience have not waned within retail and shoppers are looking to be “wowed” by their experience with a brand. A 2020 study conducted by The Verde Group and Wharton Baker Retailing Center found that influential “wow” shopping experiences in retail can lift purchase intent by up to 60% depending on the retail category. The challenge for most retailers is to understand and deliver the right experiences that will have the greatest impact on ROI and drive customer loyalty.
The Client is a leading high frequency North American retailer who had committed to improving customer experience as a key priority given their decline in market share. Despite best intentions, their efforts to date had minimal impact on improving market share and the shopper experience remained fraught with friction. The Client struggled to cut through their mass amounts of customer research and data to truly understand where they should prioritize and invest in their experience.
Specifically, they sought to understand:
The Client, like many retailers, had been conducting CX research and analysis for some time. Given that they had seen minimal results, the leadership team at the Client sought out The Verde Group to help them “unstick” their CX strategy and explore alterative approaches. They demonstrated a great deal of managerial courage and an openness to taking a different, less conventional approach to understanding the drivers of customer loyalty. Working together, the Client and The Verde Group invested time in aligning around a common vision for a new, more innovative, more impactful approach to measuring CX and the implications of that approach at both a strategic and local level. Given the Client operated a loyalty program, they challenged The Verde Group to leverage both research and customer data.
Revenue@Risk® analysis is a unique, proprietary analytic methodology that quantifies the financial impact of customer problems to answer these key business questions:
The Verde Group worked alongside the Client to innovate the Revenue@Risk® analysis by marrying The Verde Group’s proprietary research method with the Client’s loyalty program customer data. This integration focussed on understanding which negative shopper experiences had the greatest impact on decreased spend and share of wallet overall. Further, by integrating loyalty data, the analysis modelled out those negative experiences and their economic impact at a customer segment and store level. This analysis enabled stores to act locally and on a 1:1 basis to mitigate potential problems.
The analysis had a profound impact on The Client’s approach to measuring and understanding CX and in planning for customer experience improvements. The analysis provided clarity on the most damaging problems and drove clear action planning both strategically and at a local store level. As well, this work enabled The Client to validate the importance of their loyalty program and extract more value from its data as a key strategic input for developing clear and specific customer experience improvement opportunities.