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A Harsh Reality: Retailers Aren’t As Customer-Centric As They Think Featured

A Harsh Reality: Retailers Aren’t As Customer-Centric As They Think

Despite how confident retailers may feel about their ability to relate to the customer, they should always invest more in the shopper experience — because chances are they aren’t doing enough. While 75% of organizations believe themselves to be customer-centric, only 30% of consumers agree with this sentiment, according to research from Capgemini.

The organization-consumer divide extends to Net Promoter Score (NPS) — an index ranging from minus 100 to plus 100 that measures the willingness of customers to recommend a company's products or services. For example, 90% of companies believed that their organizations’ NPS had increased by five points over the last three years. But only half of consumers agreed (54%) with this sentiment.

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It shouldn’t be a surprise, then, that higher NPS correlates with a higher investment in customer experience. Companies that closely link their business operations with customer experience (6%) enjoy a 14-point NPS® advantage compared to companies with business operations that are not connected to customer experience at all (33%). Businesses with close linkage also experienced double the increase in their NPS (12 points) over the last three years.

Organizations Struggle Both With Technology And Rising Expectations

For those that aren’t meeting consumer demands, the challenges are both organizational and technical, particularly in IT. These challenges include:

  • Rising consumer expectations (57%);

  • The rapidly evolving technology landscape (56%);

  • Integrating disparate platforms (38%); and

  • A poor user interface (32%).

These organizations also cite a lack of dedicated customer experience budgets (41%) and internal ownership of the digital customer experience (35%) as barriers, suggesting that many organizations are still not prioritizing digital as a means of driving competitiveness and growth.

Capgemini’s Digital Transformation Institute compiled the report, titled: “The Disconnected Customer: What digital customer experience leaders teach us about reconnecting with customers,” a study of more than 3,300 consumers and 450 senior executives from organizations within retail, retail banking, CPG, utilities and Internet-based services.

 

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