By Simon Fraser, InMoment + Kirstin Simons, NPSx by Bain & Company
NPSx by Bain & Company and InMoment recently released the State of CX: UK Consumer Trends Report, an in-depth analysis of customer perceptions on brand experiences across multiple industries. Based on responses from over 32,000 consumers, we have uncovered invaluable insights that reveal how certain brands are performing.
In this blog, we take a look at the findings specific to the retail industry and delve into the secrets of CX leaders and the key net promoter score drivers that propel them to the top of the leaderboard!
The Challenge of Our Times
It’s no secret that retailers today operate in a challenging environment. In the ever-evolving landscape of retail customer experience (CX), businesses face a multitude of challenges and trends that shape their strategies. Record inflation, supply shortfalls, labour constraints, rising capital costs, and material shortages have created a perfect storm. To add to the complexity, an increasing number of customers are demanding that companies take meaningful steps toward sustainability, reflected in their ESG (Environmental, Social, and Governance) commitments.
Exceptional Brands in the Spotlight
Among the wide range of retail and grocery brands, two stand out in their dedication to delivering on their promises: John Lewis in the retail sector and Aldi in the grocery sector. These brands couldn’t be more different, yet both have mastered the art of aligning their brand identity with their customer experience, and they’ve done so with resounding success.
Clear and distinct brand identity is a common thread between successful retail brands. It’s the beacon that guides their actions and decisions, ensuring that every interaction with customers reflects their core values and promises.
Retail’s NPS Drivers
When we scrutinise the net promoter score (NPS) data by sector, a pattern emerges: product quality and great value consistently stand out as the primary drivers of customer loyalty. Today’s consumers want their money to stretch further, and they value brands that save them time and effort by offering trustworthy products. Making it easy for customers to access help, both online and offline, is another critical factor in building loyalty.
Retail, in particular, shines when it comes to providing great value to customers. This is a testament to the industry’s commitment to delivering products and services that meet customers’ needs without breaking the bank.
The Era of Personalisation
In an age where consumers are inundated with marketing messages, personalisation has become a key factor for success. A staggering 72% of consumers now engage only with messages tailored to their interests. While customers appreciate this approach, marketers acknowledge that achieving true personalisation requires substantial investment.
Effective personalisation begins with a deep understanding of customer needs. To organise around customer goals rather than organisational silos, businesses must dissect customer behaviour. This involves identifying what products customers are buying, their interests, preferred communication channels, and the right timing for engagement.
NPSx by Bain & Company states that connected customer experiences, powered by AI, are the future of CX. Predictive personalisation and hyper-personalisation are emerging as game-changers. These tools leverage data and algorithms to anticipate customer needs and provide tailored experiences that delight customers.
Promoters, Passives and Detractors in Retail:
- Over 50% of John Lewis and Ikea customers are enthusiastic Promoters, setting a high standard for customer satisfaction.
- Brands like Amazon and Shein tend to polarise opinions, evoking strong reactions from both Promoters and Detractors.
- Many retailers, including Matalan, The Range, and Boohoo, have a significant number of Passives among their customer base. This presents an opportunity for growth and improvement through targeted investments.
Retail in the Bigger Picture
Taking a step back and comparing the retail industry to the broader UK context, we see that retail is one of the top-performing industries in the study. It consistently outperforms the average across all NPS drivers. Retail’s strengths lie in its ability to provide great value and adapt to challenging market conditions.
In a rapidly changing retail landscape, understanding NPS trends and adapting to meet evolving customer expectations is crucial. Brands that can navigate these challenges while staying true to their core identity and delivering exceptional value and personalisation will undoubtedly excel in the dynamic world of retail CX.
If you’d like to find out more about the study and how you compare to others in the retail sector, book your meeting here!