In the past, retailers typically organized themselves by function and category. Functions such as marketing, category management, retail, online, customer relationship management, real estate, and logistics were solely responsible for the decisions made within their silos. Few companies thought about the customer experience as an integrated whole.
According to BCG's Retail 2020 report, today's forward-looking retailers are augmenting this model by segmenting consumers on the basis of their shopping habits and spending levels, and ensuring their organizations are hard-wired to meet the needs of their highest-value customers. This customer-centric model is critical now that buyers have become more powerful and discriminating.
Here's how this new customer focus is changing how retailers think of their business: