News • 03.03.2021

Retail industry lags behind in customer experience strategy

Lack of data and analytics hinders successful customer experience delivery

Four colorful smileys, from unhappy to smiling; copyright:...
Source: PantherMedia/tehcheesiong (YAYMicro)

NTT Ltd. announced its Retail Guide to the Global Customer Experience Benchmarking Report which shows that the retail sector is particularly lagging behind in customer experience (CX) compared with the all industry benchmark. However, retailers have the ambition to improve their CX strategies and recognize that organizational change is essential to make improvements.

  • Only 17.9% of retail organizations have enterprise wide CX analytics compared to 26.4% of the all industry benchmark.
  • One third (34.1%) of retail organizations are aligning data capture needs with desired outcomes in contrast to 49.7% of all industry businesses.

In 2020, most businesses experienced a shift in customer behaviour as consumers were forced online, regardless of their previous shopping habits, due to global lockdowns. As a result, retailers have experienced accelerated digital transformation, but their CX strategies have fallen behind. 

“The so-called ‘retail apocalypse’ did not begin with the recent pandemic but was exacerbated by it. For over a decade, consumers have fled to e-commerce providers who deliver the digital options they prefer,” says Sheila McGee-Smith, Founder and Principal Analyst, McGee-Smith Analytics. “In 2021, traditional retailers need to step-up to the customer experience preferences of consumers or risk further extinction.”

Remaining relevant in a complex, changing environment

NTT’s all industry research found that delivering a positive CX is a clear priority for businesses, with 70.5% of organizations citing improved CX as the top factor driving their digital transformation. However, NTT predicts that CX success will depend on whether businesses have a data-driven and well-documented strategy in place. 

Without a clear understanding of customers‘ behaviour, retailers are missing out on a huge opportunity to deliver a seamless CX. The evidence is clear – organizations with access to enterprise-wide CX analytics systems have reduced the percentage of dissatisfied customers to 21.4%. The immense amounts of customer data that most organizations access, capture and manage from multiple sources is only set to grow in the year ahead too, highlighting the complexity of this challenge and need to tackle it urgently.

To remain relevant in this changing environment, retailers must be able to gather insights from data analytics that allow them to improve CX by: 

1. Implementing personalization: 75.6% of retailers have some personalization available, but only 4.8% of retail organizations can proactively personalize CX, which is about two thirds less than the global (all industry) benchmark. Business need to meet and serve customers where, when and how they choose to connect. Personalization is the crux of meaningful communication in the digital world.

2. Engaging with omnichannel and automation: 61.5% of retailers at best collaborate in part and 25.6% don’t collaborate at all when defining customer journeys and designing CX. Automation goes a long way towards improving efficiencies to streamline and provide an enhanced real time experience. This is likely to come with a greater adoption of chatbots and AI-driven natural language processing bots - which will increasingly undertake businesses’ first-and early-stage interactions with customers. As a result, 82.1% of retailers report that more AI, robotics and digital programming skills will be needed in the next two years.

3. Optimising and accelerating performance: Most retail organizations now see the need to evolve and be agile, with one in five (21.0%) now proactive and growth-orientated and another half (46.8%) open to change. To optimise and accelerate performance, organizations need a digital-first strategy that embraces new technology and allows them to adapt.

“Retailers need to remove the barriers between aspiration and action when it comes to their CX strategy,” says Robert Allman, Global SVP Customer Experience at NTT. At the moment many retailers are missing an understanding of behavioral patterns that allow them to empathize, contextualize, and better connect with customers. With CX so critical to business success over the next 12 months, the winners will be those who truly understand the customer journey and use these insights to engage their customers by providing valuable personal, proactive, and content rich experiences.”

Source: NTT Ltd.

related articles:

popular articles:

Thumbnail-Photo: VM & Display Show 2022
12.10.2021   #brick and mortar retail #retail

VM & Display Show 2022

05.04.-06.04.2022 | London

World-changing thinkers and innovators all from April 5-6, 2022, under one roof. The VM and Display Show is the longest running exhibition for the industry.Whether you are a retailer, designer, in the leisure and entertainment industry or in ...

Thumbnail-Photo: Fashion Tech Berlin 2022
28.09.2021   #online trading #e-commerce

Fashion Tech Berlin 2022

18.01. - 20.01.2022 | STATION Berlin, Germany

FASHIONTECH Berlin is a conference about the future of fashion and deals with topics around innovations and digitalization in the fashion industry. Global players, buyers, start-ups, influencers, marketing experts and journalists will come together ...

Thumbnail-Photo: World Class Retail Store Transformation 2022...
13.10.2021   #retail #digitization

World Class Retail Store Transformation 2022

31.03. - 01.04.2022 | Frankfurt am Main

The leading conference for digital transformation best practices in Europe will take place on March 31 - April 01, 2022 in Frankfurt am Main, Germany. World Class Retail Store Transformation 2022 is an official event of the World Class ...

Thumbnail-Photo: CLAIM 5: New growth strategy
20.08.2021   #e-commerce #brick and mortar retail

CLAIM 5: New growth strategy

HUGO BOSS presents plan to increase sales

HUGO BOSS has introduced its new 2025 growth strategy ‘CLAIM 5’ and provides its mid-term financial ambition. Over the next five years, the Company is fully committed to strongly accelerate top-line growth, claim its position in the ...

Thumbnail-Photo: How Discovery Commerce is changing online shopping...
04.10.2021   #online trading #e-commerce

How Discovery Commerce is changing online shopping

New ways of addressing and attracting customers

When shopping online, people no longer tend to buy only products they have specifically searched for. Increasingly, they are also tempted to make spontaneous purchases online. The principle is called discovery commerce. "Shopping by ...

Thumbnail-Photo: Product information management systems in furniture retailing...
27.09.2021   #online trading #e-commerce

Product information management systems in furniture retailing

Why investing in the quality of product information is worthwhile

“The wooden table with a square table top and four table legs.” Customers as well as furniture retailers and manufacturers know that it is not that simple. But it is precisely this specific product information that is important for all ...

Thumbnail-Photo: Over 700 exhibitors confirmed for ISE 2022
12.11.2021   #digitization #event

Over 700 exhibitors confirmed for ISE 2022

ISE 2022 returns with a vibrant and inspiring edition, a redesigned show floor and new demonstration areas guaranteed to enable exhibitors to ‘Rise Up. Reimagine. Ignite the Future.

Exhibitors are signing up in significant numbers to take part in ISE 2022, the destination for world-class brands to showcase the latest technologies in pro AV. With over 700 exhibitors already committed, including bellwether brands Barco, Crestron, ...

Thumbnail-Photo: Viscom 2022 - Europes Trade Fair for Visual Communication...
13.10.2021   #retail #event

Viscom 2022 - Europe's Trade Fair for Visual Communication

11.01. - 13.01.2022 | Düsseldorf

The viscom trade fair in Düsseldorf is the international trade fair for visual communication. More than 250 national and international exhibitors present their products and services for visual communication in advertising applications at the ...

Thumbnail-Photo: Digital Care Labels: Show eco-consumers you mean business...
02.08.2021   #digitization #sustainability

Digital Care Labels: Show eco-consumers you mean business

Why fashion should allow consumers to take part in their garment’s circularity story

Clothing brands are actively seeking ways to lighten their environmental impact. It’s shocking that, on average, 23 kilograms of greenhouse gases are produced per kilogram of fabric, and in North-West Europe alone, around 4.7 ...

Thumbnail-Photo: Smart Retail Tech 2022 – Create the Perfect Customer Journey...
12.10.2021   #brick and mortar retail #retail

Smart Retail Tech 2022 – Create the Perfect Customer Journey

02.03.-03.03.2022 | London

Bringing digital innovation to the retail sector.CREATE THE PERFECT CUSTOMER JOURNEYWelcome to Smart Retail TechThe only place to discover the latest technologies that will enable you to attract, inspire and retain your customers in the age of ...

Supplier

Reflexis Systems GmbH
Reflexis Systems GmbH
Kokkolastr. 5-7
40882 Ratingen
Citizen Systems Europe GmbH
Citizen Systems Europe GmbH
Otto-Hirsch-Brücken 17
70329 Stuttgart
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen