More than ever, the customer is king. Regardless of a retailer’s brand strength, customers will switch when they find a superior value proposition.
In today’s environment, retailers need a data-driven approach that focuses on understanding the customer’s needs and expectations. Customers want quality products, easy accessibility, and lasting value. Leading retailers consistently focus on creating the right mix of products and services for their customers, the best way to offer those products and services, and the optimal price to charge—with the overarching goal of building stronger and more sustainable customer relationships.
BCG brings a rigorous, data-driven approach to helping our clients understand their customers and meet their needs, across many topics:
Some retailers assume that a little tinkering with the value proposition is all it takes to adapt to changes in the marketplace. After all, price, assortment, and convenience are still powerful competitive criteria, especially when supported through service, quality, value, and the overall customer experience. Yet the value proposition alone is not enough. The most successful retailers also revamp their operating model—including their organization, sourcing, store operations, and value chain—to align internal resources so that they can deliver on the customer-facing element in the most efficient manner possible.
In this way, retailers address both sides of their overall business model. They can consistently meet and exceed the expectations of their customers—and turn those customers into passionate advocates.