What separates the winners from the losers 06 04 2012 final

What Separates the Winners from the

Losers in the Grocery World

Vice President Grocery

Empathica

June 6, 2012

Brian Jones

Chief Customer Officer

Empathica

Gary Edwards

© 2012 All Rights Reserved - Confidential

The Needs of Grocers Today

Customer loyalty should be the

focus for grocery stores:

• Customer acquisition does not

represent the greatest opportunity

• Increase share of wallet among

existing customers does

2


Average Customer Loyalty of Grocery

Store

3

30%

70%

Avg. Grocer Loyalty Share of grocery dollars spent elsewhere


The Impact of Customer Loyalty

$20,000,000,000

@ 30% Customer Loyalty

$66,000,000,000@ 100% Loyalty


Customer Service Could Improve

44% of customers feel customer service

could improve

5


Are You Meeting Customer Expectations?

6


Are You Meeting Customer Expectations?

7


Who We Are

8


What Do Consumers Think?

• What are the mix of store

experiences most important

and help retain best

customers?

• Which banners are at risk of

their best customers attriting?

• What can grocers learn about

the customer experience from

other grocers best customers?

9


Focus on Best Customers

The insights focussed on only those who spend at least

50% of their dollars in a particular grocer

10

10%

50%

50%

80%

Customers Dollars

Typical Grocer Distribution of Customers and Dollars


The Framework for Customer Experience

in Grocery

11

Merchandising

Promotions

Store Operations

Store Technology

People

Rank the

importance of

and whether

your preferred

grocer is

delivering


The Scoring

Identify what is:

• Most Important (score 2)

• Somewhat Important (score 1)

• Not Important (score 0)

Is this true at your primary grocery

store?

• Always (score 2)

• Sometimes (score 1)

• Never (score 0)

12


Results

There is no one experience that fits all

People have different preferences

It is the mix of factors that matters

Grocers must understand their best customers,

and develop experiences that drive and ensure

their loyalty

13


A Shoppers Perspective

14

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Importance


A Shoppers Perspective

15

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

Meeting Expectations


Who’s Meeting Customer Expectations

1.2

1.25

1.3

1.35

1.4

1.45

1.5

1.55

1.6

1.65

16


Top Grocers List (US)

17


Meeting Expectations - Operations

18


Meeting Expectations - Merchandising

19

© 2012 All Rights Reserved - Confidential 20


Advocacy

Create a Brand

to Love

21


Start a Conversation

22

Invitations designed

to suit your brand

Industry leading

incentive plan to drive

response count

Multi-mode feedback

collection to listen to

your customers


Change Employee Behavior

Commit to action

Focus on what’s most

important to customers

Deliver great experiences

Improve overall satisfaction

score up to 5x more than

traditional CEM

23


Sustain the Great Experiences

Leverage the power of your

internal community

Build best practices through

social sharing

Continually improve the

experience

+8% focus area improvements

24


Focus Cycle for Ongoing Improvement

Eliminate the need for

complex reports

Focus locations on what is

most important for their

guests

Help location managers

know what to fix and

how to execute

25

Select

Commit

Act

Measure

Review

Share


Find Satisfied

Customers

Convert Customers

to Advocates

Give Customers a Voice to Recommend

26

Amplify the Voice of

Your Advocates


Customers with high are invited to

make a recommendation

Customer makes a personalized

recommendation

Recommendation is shared via Facebook, Twitter

and email with all of the advocates’ friends

Facebook Post

Customer completes survey

Twitter Post

Email Post

A Simple Process to Drive Advocacy

27


Facebook Post

Twitter Post

Email Post

The Impact of Advocacy

28

Positive experiences

shared with over

110,000,000+Friends and Followers

100+ Brands

Over

1,000,000advocates found

20%accept invitation


Word of Mouth Endorsement on Social Media

Primary

marketing

message

Personalized

message from

advocate

Secondary

marketing

message


Advocacy

EmpathicaSocial Customer Experience Management

30


“The program has proven to be hugely motivating and empowering for our Partners, particularly through the specific feedback received by our stores which contain positive survey respondent comments on excellent service”

31

Thank You

Download the Full Grocery Reporthttp://www.empathica.com/consumer-insights/market-specific-

reports/empathica-consumer-insights-panel-grocery-report/

http://www.empathica.com/consumer-insights/market-specific-reports/empathica-consumer-insights-panel-grocery-report/

















Business

What separates the winners from the losers 06 04 2012 final