CUSTOMER STRATEGY DRIVING SUSTAINABLE GROWTH THROUGH A CUSTOMER CENTRIC APPROACH

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1 CUSTOMER STRATEGY DRIVING SUSTAINABLE GROWTH THROUGH A CUSTOMER CENTRIC APPROACH 1 Customer Strategy

2 CUSTOMER STRATEGY With more connected global marketplaces, shortened product and service innovation cycles, and increasing customer choice, businesses who want to create shareholder value must grow their loyal customer base. At dunnhumby, we ve found that the companies who follow a customer centric approach are best equipped to do just that. Why? Customer centric companies understand customer wants and needs and the emotional outcomes they re looking for and have the right plans and processes in place to satisfy them. They re motivated to understand both the common and unique traits of their customers and create experiences that build meaningful connections and long-term loyalty. dunnhumby s Customer Strategy team partners with retailers and FMCGs to help them make the leap into customer centricity. Bringing our experience and expertise in data science, human understanding, and organisation performance management, we help clients like you to better understand your customers, identify important strategic customer groups, and focus on creating a relationship to best engage those customers. It s an approach proven to profitably increase sales, build customer loyalty, and put an emphasis on strategically acquiring the customers who are most likely to become your best customers over time. Becoming a customer centric business requires a commitment from the entire organisation each and every decision must change to operate in the service of satisfying a customer-driven market. Our approaches recognise this and help our clients transition to new ways of working. We work in partnership with our clients to shape and deliver customer strategy, make better business decisions, and implement sustainable customer-first organisational change: We transform businesses by helping root strategy, planning, and process around what customers value and want We leverage our analytical skills and capabilities to create market and customer data-driven strategies We enable and align businesses with the right education, performance management, and talent management to create a customer-first culture We aim to grow all customers but our experience shows that loyal customers deserve the greatest focus We help businesses develop their Customer Strategy capability with powerful offerings in three key areas: CONNECTED INSIGHTS CUSTOMER STRATEGY AND CHANGE CUSTOMER FIRST STRATEGY AND PLANNING CUSTOMER FIRST ORGANISATIONAL CHANGE CUSTOMER LOYALTY 2 Customer Strategy

3 CONNECTED INSIGHTS Leveraging advanced tools and analytical methods and an unparalleled view of customers attitudes and behaviours we identify valuable customer and market growth opportunities and provide insights on what your customers feel, think, and do. Knowing precisely who customers are, what they need, and how they engage is critical to providing the targeted and personalised experiences that keep them coming back. Our market and customer insight services focus on answering the pivotal question: Who is the customer? PRODUCTS AND SERVICES Segmentations Our segmentations provide a multidimensional view of customers, enabling clients to identify and create strategies for valuable customer niches. Segments can be adapted to your specific needs and include behavioural segmentation (spend, visit, engagement), needs segmentation (e.g. health, budgeting, convenience, discovery), or combined approaches (e.g. missions, multi-channel). Customer Value Analysis Our value analysis methods describe the contribution of customers at varying levels: total brand, category share, and product level. Based on propensity modelling and agent-based modelling, we can help you model and forecast customer value based on changes in context or in direct response to stimulation by the marketing mix. Shopper Thoughts Our panel data source, which fuses attitudinal and behavioural data to help you understand not only what customers have done, but also the motivations and attitudes behind why they did it. We use Shopper Thoughts as input to our segmentations, as well as to build operational trackers to help you monitor your customer experience and brand image or evaluate the impact of your investments. Behavioural Attitudinal Research (BAR) An automated solution providing quick answers to common business questions What do customers think about my product? and Why are customers buying less of my product?, for instance based on both attitudinal and behavioural insights. Global Trends By supplementing customer data with macroeconomic, technology, societal, health, and development indicators, we identify consumer trends that will affect you over the next five years, enabling superior forward-looking strategies. Loyalty Drivers We know the importance of understanding customers in the full context of how people shop today. By mixing qualitative and quantitative research and behavioural analysis, our proprietary approach uncovers how to drive customer loyalty and improve your value proposition. 3 Customer Strategy

4 CUSTOMER STRATEGY AND CHANGE We ve found that customer centric businesses the businesses that put customers first create happier and more loyal customers, culture that inspires people to feel excited about their work, and superior growth gains for their shareholders. Our Customer Strategy and Change services focus on answering the pivotal questions: Does a customer-first strategy make sense? What should the immediate goals be? What are the barriers we need to overcome? How do we equip the business for success? How can we sustain a customer-first culture? 4 Customer Strategy

5 CUSTOMER FIRST STRATEGY AND PLANNING Through a thorough analysis of your data and current customer engagement strategy, our consultants work with you to develop a general strategy vision and long-term plan to help guide smarter investment decisions focused on the customer. Typically one of the first services provided to a new client, this engagement brings the best of dunnhumby s global experience, reducing implementation timelines and avoiding costly mistakes. PRODUCTS AND SERVICES Customer Centricity Assessment Using benchmarks, we assess the current levels of customer centricity in your business and your readiness for organisational change to provide unbiased feedback on your capability maturity, strengths, and weaknesses. Our approach includes decisions that impact price, promotions, categories, channels, formats, communications, media and loyalty. Customer Review An in-depth analysis and action interpretation of the forces, trends, and consumer behaviour within your target markets. We help you determine where to focus and why so that you stay tuned in to your customers key priorities. Customer Promises We ll work with you to develop Customer Promises galvanising and uncompromising commitments to your customers to help your company embed, embrace, and deliver a customer-first strategy across the organisation. Strategic Simulation and Foresights Using advanced agent-based modelling, we evaluate what will drive shopper decisions in a hypothetical future retail environment. This insight enables you to test the robustness of your strategy in a dynamic marketplace and address potential areas of concern in advance. Customer Plan To execute the priorities identified in the Customer Review, we ll work with you to create and review quarterly a plan which defines a clear set of issues to be solved and ensures responsibilities and tasks are appropriately assigned. 5 Customer Strategy

6 CUSTOMER FIRST ORGANISATIONAL CHANGE After developing an insight-led customer strategy, we engage clients via a series of programs and services including customer centricity and customer experience analyses, as well as implementation best practice to assist in the implementation of organisational change in line with the new strategy. There are typically numerous barriers within an organisation to moving in the direction of a customer centric or customer-first business strategy; we re equipped and qualified to help you overcome them. PRODUCTS AND SERVICES Customer First Change Methods and Tools We ll work with the client teams responsible for implementing customer-first change in your business to establish the methodology, structure, tools and know-how necessary for a smoother, faster execution. Services we offer include: Communications strategy, ensuring all employees understand all the necessary facets about customers, the common customer language, and how to meet customers needs in ways that are unique to their role Change readiness, ensuring that the modified practices and new performance metrics are feasible and that the necessary plans are put in place to support employees Rewards and Recognition programs and incentives, helping to motivate employees in the right way Customer Promises Changing an entire organisation to focus on customers is founded on our creation of Customer Promises galvanising and uncompromising commitments to your customers to help your company embed, embrace, and deliver a customer-first strategy across the organisation. Customer Experience Led Situational Analysis (CELSA) Our consultants will capture and explore all of the factors that contribute to the customer experience in your store, identify potential overlooked and misunderstood decisions impacting the experience, and recommend new processes based on our analysis results. Forrester Research Two-thirds of companies use customer journey maps to understand their customer experience, but only one in five maps the entire customer experience ecosystem. Do you understand the full experience your customers are having? We can help. 6 Customer Strategy

7 CUSTOMER LOYALTY Today s shoppers navigate a fragmented experience motivated by habit, distraction, and mindful choice creating personalised experiences that get and keep their attention is critical to winning their loyalty. dunnhumby s Customer Loyalty services are focused on assisting your business to understand what drives the loyalty of customers and to develop a winning customer experience and loyalty program strategy. Our Customer Loyalty services answer the pivotal question: How should we engage customers? Our consultants provide expert advice and assistance at any stage of customer experience and loyalty program decision making, including: Understanding your current customer experience and the implications for your brand Identifying how to differentiate and align your organisation with customer promises Designing and launching an appropriate and cost-effective loyalty program Measuring the customer experience and/or loyalty program Assessing an existing loyalty program PRODUCTS AND SERVICES Customer Experience Assessment and Design We immerse your organisation in understanding what customers experience in your stores and with your brand to help create a better, more brand aligned customer experience. In combination with segmentation, CELSA, and leveraging our proprietary shopping mindset models, we can identify improvement opportunities and barriers for strategic customer groups. Loyalty Assessment To understand how your loyalty program is performing for the business and customers, we ll complete a competitive assessment against loyalty trends, an analysis of customer engagement, and a critique of your business attitude toward the benefit and success of the program. Loyalty Program Design Leveraging our experience designing and supporting 29+ global loyalty programs, we ll work with you to develop or redesign a loyalty program or CRM proposition that best fits your corporate and customer strategy. On average across all of our loyalty programs dunnhumby clients in both grocery and non-grocery retail achieve 20% 35% new customer additions and a 15% 25% increase in customer contribution generated from either visit frequency increases or spend value increases. Loyalty Program Launch and Measurement From ensuring the appropriate technology and operational requirements are in place to supporting staff in the implementation to defining KPIs and building program reporting, our process ensures the successful launch of your program and measurement of its effectiveness. 7 Customer Strategy

8 dunnhumby is the world s leading customer science company. We analyse data and apply insights from nearly one billion shoppers across the globe to create personalised customer experiences in digital, mobile, and retail environments. Our strategic process, proprietary insights, and multichannel media capabilities build loyalty with customers to drive competitive advantage and sustained growth for clients. dunnhumby employs over 2,000 experts in offices throughout Europe, Asia, Africa, and the Americas and works with a prestigious group of companies including Tesco, Monoprix, Raley s, Macy's, Coca-Cola, Procter & Gamble, and PepsiCo. GET IN TOUCH Contact us at to see how a customer centric approach can help you profitably increase sales, build loyalty, and acquire more of your most valuable customers. 8 Customer Strategy dunnhumby 2015

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