Danielle Le Toullec, Head of Marketing for True, and MAD//Fest Speaker argues that in today’s dynamic business landscape, placing your customer at the centre of your business strategy is essential for sustainable growth and competitive advantage. Companies that prioritise customer satisfaction by focusing on meeting customer needs and enhancing their experiences outperform their peers in revenue growth and market leadership.

Insights from Industry Leaders

2024 event season thus far has shown a strong emphasis on customer-centricity at major events like the World Retail Congress, Shoptalk Europe, and London Tech Week. As I noted in my last MAD / Insights piece on WRC, Michael Ward, Managing Director of Harrods, highlighted the necessity of investing in customer experience: "If you're not willing to invest in understanding your customer you won't win". Harrods has invested millions in data scientists and its Insights team to truly understand customers and unearth valuable information that he says is “as good as Amazon”.

At Galleries Lafayette, CEO Nicolas Houzé, shared with Fashion Network that customer satisfaction, regularly measured, is a key priority for boosting profitability, allowing reinvestment in stores and operations. Similarly, at Printemps, CEO Jean-Marc Bellaiche, shared its strategy of putting their customers at the heart by having 100+ personal shoppers who speak 16 languages; they go as far as to offer at-home visits to help identify, value, and pick-up pre-loved items to re-sell in its incredible circularity floor.

At the recent ‘CEO Technology & Innovation Insights’ session with the British Retail Consortium, where I presented on the future of brand engagement, it was clear that Retail leaders recognise the critical importance of understanding customer behaviour, though navigating between what customers say and what they do remains a challenge. In-store computer vision technology can observe how customers navigate the environment, enabling retailers to design layouts and experiences that cater to diverse shopping preferences, from self-service kiosks to experiential elements.

The Shift in Customer Growth Strategy

Nurturing existing customers is now as important as acquiring new ones. Janet Hayes, CEO of Crate & Barrel, shared at WRC how their Design Desk service, offering personalised home interior design assistance, significantly boosted store performance. This service now accounts for 40% of in-store revenue, with average order values of $3,000 versus $1,000 for other orders, clearly highlighting the value of personalised customer interactions. Another upside of the service is that at the New York City store for instance, 25% more sales are being generated from 30% less space.

From the investment perspective, Scale Venture Partners' recent Scale Studio Flash update indicated that existing customers now contribute equally to growth compared to new customers, a significant shift from a year ago when new customers accounted for nearly 80% of growth (see below graph).

Technological Advancements in Customer Contact

As consumer expectations evolve, delivering exceptional experiences throughout the entire customer journey has become a critical differentiator. Advances in NLP, generative AI, and voice AI are transforming customer contact, enabling brands to engage with customers more naturally and personally. These technologies support sales, enhance self-service options, and optimise agent interactions, creating seamless and efficient customer experiences. Retailers that effectively leverage these technologies can meet evolving customer expectations and stand out in the competitive landscape. Insights from customer interactions can further enhance these experiences, helping brands continually improve and adapt to changing customer needs. Loyalty programmes certainly help here, providing data to tailor offers to target audiences. This may be through price-driven strategies to combat the cost-of-living crisis or exclusive money-can’t-buy experiences. These programmes offer hyper-personalisation opportunities, leveraging data analytics to tailor offerings to individual preferences.

Omnichannel vs. Multichannel Customer Contact

A critical distinction in customer contact strategies is between multichannel and omnichannel approaches. Many brands and retailers use channels like email, SMS, social media, and webchats, as well as calls, for contact. However, true omnichannel experiences involve seamless integration, allowing customers to switch between channels and continue conversations without interruption. This integration ensures a consistent and satisfying customer journey, crucial for effective customer-centric strategies and expected by today’s connected customer. By focusing on understanding and meeting customer needs, leveraging advanced technologies, and integrating customer contact channels, retailers can create exceptional experiences that drive loyalty and growth.

Reflecting on MAD//Fest!

If you're interested in discussing how these strategies can be tailored to your business or exploring collaboration opportunities, I spoke at MAD//Fest, discussing "How Brands Are Using Generative AI and Emerging Technology to Drive Engagement and Growth." The session explored how brands leverage personalised content creation, virtual product visualisations, predictive analytics, interactive marketing campaigns, and dynamic pricing. I look forward to sharing more insights and engaging in discussions on leveraging generative AI and emerging technologies for enhanced customer engagement and growth.