H&M and Woolworths score top marks in customer centricity rankings

©jewhyte via 123RF

Against this backdrop, the recent Dunnhumby Customer-Centricity Index (CCI) survey focusing on apparel retailers once again underscores the importance of putting customers at the centre of your business. More than ever, the retailers that understand their customers' needs best and how to service them are the ones that will remain successful.

CCI scoring

As a global customer data science company, Dunnhumby identified seven pillars – Affinity, Communication, Range, Rewards, Price, Promotion and Service – that customers highlight as the aspects of the shopping experience that matter most to them. The survey establishes a CCI score per apparel retailer and then maps which of the seven pillars drive each retailer’s respective CCI score.

1. Affinity - A strong connection between the store and the customer. Help customers to get everything that they need and having their expectations surpassed.

2. Range - Having the right products and a strong variety to meet customers’ needs. The best companies don't try to carry every possible product, but make sure to carry the products their customers want.

3. Service - Making the shopping experience easy, enjoyable, and convenient. The best companies make customers want to share their positive experiences.

4. Promotions - Leveraging promotions on the items that are most appealing and often purchased by your current customers. The best companies promote the products that matter most to their customers.

5. Price - Providing prices that are perceived to be in line with what the customer is looking for, on the products they purchase most often. The best companies don’t have to be the price leaders, but need to have pricing that customers see as fair.

6. Communications - Personalising the message to customers, based upon what they buy and delivering it in a way they like. The best companies provide tailored, relevant communications based on customer preferences.

7. Rewards - Rewarding and recognising your customers in a consistent way that is relevant to how they want to be rewarded. The
best companies reward customers in the ways they prefer for how they shop.

Top performers

According to the recent CCI survey, the most ‘customer-centric’ apparel retailers were a mix of local and new international entrants, with H&M and Woolworths sharing the honours with strong performance on several pillars, namely, Range, Price and Promotion.

Other retailers leading across categories included:

Affinity – Woolworths, Fabiani, Country Road
Communication – Woolworths, Sportscene, Edgars
Price – Pep Stores, Mr Price Sport, Pick n Pay Clothing
Promotion – Woolworths, Edgars, Jet
Range – Woolworths, Cape Union Mart, Sportscene
Rewards – Pick n Pay Clothing, Edgars, Woolworths
Service – Woolworths, Fabiani, Sportscene

Dunnhumby SA MD, Graeme Tulloch comments, “Given the pressure currently being placed on consumer discretionary spend, maximising customer loyalty and share of wallet is key. Furthermore, sustainable growth requires overcoming the challenge of South Africa’s population diversity which won’t necessarily succumb to a ‘one size fits all’ strategy. Deep insight is required to efficiently meet customer needs, and Dunnhumby customer data science can assist in unlocking these.”