Although deemed as important to the companies surveyed, consumer knowledge and supply chain both hold an even greater opportunity for growth than many respondents have recognized.
The industry has thrived in the past on segmenting and targeting specific subsets of consumers, but today many companies may need to shift to being able to target “a segment of one” explains Mark Larson, Global Head of Retail at KPMG.
Not surprisingly retailers are more likely to be focused on customer acquisition, retention and merchandising strategies such as, deriving insights from the “abundance of data” now available at little cost.
The competitive edge will come to those companies who can master turning the data into insight into value. However, few have been able to capture the growth and economic value available to them.
Customer loyalty strategies can be considered powerful tools in support of this agenda. Once discovered, the ability to influence a specific customer journey—with a customized, instantaneous promotion or value proposition that can directly prompt a purchase, no matter the platform, can be extremely impactful.
The continuing move to electronic shopping puts pressure for efficiency on all aspects of supply.
63% of respondents see the opportunity in their supply chain becoming a possible growth engine however, the reason for noting this area as a possible enabler flows from the perception of a large group of executives (over one in three) saying that they currently “lack the speed and agility in our supply chain to effectively compete with new entrants.”
Regardless of whether supply chain and operations improvements are needed to keep up or to fuel growth, the organization needs a cross-functional, “well-constructed supply chain strategy” according to Andrew Underwood, Head of Supply Chain for Consumer Markets at KPMG.
When used to drive growth, the need and opportunity extends to using supply chain as a source of information and adaptability – which then in turn, flows back to the issue of knowing the consumer.