IBM Global Business Services IBM Institute for Business Value Retail Turning shoppers into advocates The customer focused retail enterprise IBM Institute for Business Value IBM Global Business Services, through the IBM Institute for Business Value, develops fact-based strategic insights for senior business executives around critical industry-specific and cross-industry issues. This executive brief is based on an in-depth study by the Institute’s research team. It is part of an ongoing commitment by IBM Global Business Services to provide analysis and viewpoints that help companies realize business value. You may contact the authors or send an e-mail to
[email protected] for more information. Turning shoppers into advocates The customer focused retail enterprise By Herb Kleinberger, Melody Badgett and Maureen Stancik Boyce While retailers are heeding the daily drumbeat of pundits on the importance of focusing on the customer experience, a gap remains between what retailers are delivering and what shoppers expect. Retailers can close this gap by systematically integrating knowledge of what their best customers want and expect from their brand into every core operational decision. This is where the bar will be set for retailers – to turn shoppers into advocates and create a sustainable, differentiated advantage. Unprecedented diversity, fragmentation of compelling experience. This is a transforma- consumer values and information transpar- tional strategy that will enable retailers to turn ency have polarized the retail marketplace shoppers into advocates – customers who will and created an imperative for all retailers to recommend and promote the retailer to others, differentiate. In addition, the challenges of an spend more of their wallet with that retailer and increasingly price-driven world have raised the remain loyal over time.1 bar for retailers to create a shopping experi- ence that builds loyalty to brands, channels Retailers can develop advocates by becoming and services and is not based solely on price.