Retailers need data-driven approach to steer repeat business as only 5 per cent C-suite level retail executives think their customers are loyal, finds out an EY survey.
According to the findings of the survey of 130 C-suite retail executives from North America, Europe and Asia, despite spending billions each year on loyalty programmes, retailers are struggling to effectively use their data to differentiate customer experience and retain sales.
While a majority of retail leaders surveyed — 87 per cent — said a loyalty strategy is critical to their business success, just 27 per cent are confident that their current loyalty initiatives have a positive effect.
“The relationship with the consumer has become increasingly transactional. With consumer expectations changing at a rapid pace in India, retailers need to create loyalty to drive business,” said Pinakiranjan Mishra, Partner and National Leader, Retail and Consumer Products, EY.
Companies in India need to carefully monitor loyalty programme metrics, retention rates, analytics and targeted marketing campaign outcomes to see the true value of such programmes and thereby, meet customer expectations at every turn, Mishra said.
The survey found that just 19 per cent of retailers are able to leverage their data and systems to understand individual customer needs; only 35 per cent can capture real- time insights frequently and a mere 30 per cent have the ability to use technology to personalise the offer and experience for a customer every time.
“Legacy methods of creating and maintaining brand loyalty are failing. Many retailers are capturing data, but struggling to generate and activate insights in ways that help them stay relevant,” said Patrick Moriarty, EY Executive Director, Retail Customer Experience and Loyalty.