Connected customer

Connected customer
Connected customer
‘Always on’ to serve the connected customer

 
Muhtar Kent,
Chairman and Chief Executive Officer, The Coca-Cola Company
More than half of US CEOs will be revamping their customer strategies in 2014, responding to trends such as the digital marketplace, changing US demographics, and increasing spending power in emerging markets
Customer strategies will get a makeover in 2014

Customer strategies will get a makeover in 2014, with more than half of US CEOs tackling them with a new urgency in response to changing consumer spending patterns and behaviors.

The next few years will see CEOs leading their organizations toward a new kind of interaction with customers, one that shifts the focus away from stand-alone transactions to a more sustainable ‘always on’ relationship with customers. That means really understanding who your target customer is and giving her what she values most throughout her evolving customer journey.

 
Ken Hicks,
Chief Executive Officer and President, Foot Locker, Inc.
CEOs are actively addressing their customer strategies
Connect with our leaders
Paul D'Alessandro
Principal, Customer Leader, Health Industries
Tel: +1 (312) 298 6810
Tom Puthiyamadam
Principal, Customer Leader, Product & Services Industries
Tel: +1 (646) 471 1490
Dean Nicolacakis
Principal, Customer Leader, Financial Services
Tel: +1 (415) 498 7075

 
Daniel B. Hurwitz,Chief Executive Officer, DDR Corp.
Metrics matter and gold is in the detail

Big Data and predictive analytics are helping companies engage their customers and even more fundamentally, helping them understand who to engage. Companies are analyzing and segmenting customers and clients in more detail than traditional breakdowns by income levels, geographic location and age-groups suggest.

Every target customer segment has its own experiential, behavioral and attitudinal value set, or its own distinctive experience "recipe". CEOs know that understanding that recipe helps to predict customers’ ‘willingness to pay’ for attributes like quality and customer service and ‘willingness to stay’ or loyalty to the brand.

CEO perspectives


Daniel B. Hurwitz,
CEO of DDR
Watch the video

“The one thing I think is extraordinarily important, and that the retail community in general struggles with, is demographic shifts away from their bread-and-butter customer. We have increasing populations in the ethnic and minority populations in the United States and retailers don’t do a particularly good job addressing that change. The winners are going to be companies that aggressively pursue that customer.”


Muhtar Kent,
Chairman and CEO, The Coca-Cola Company
Watch the video

“In terms of demographics, we see aging populations in much of the developed world except for the United States. As a result, we have to appeal to mature consumers with innovations like Caffeine Free Coke Zero, for example. And we have to make sure our brands are connecting strongly with teens and their moms, helping the next generation actually fall in love with our brands, starting with Coca-Cola.”


Ken Hicks,
Chairman and CEO, Foot Locker, Inc
Watch the video

“We know that Millennials and younger people like to go to stores. We also know they like to be online. How we hook that up with the stores is going to be important. It’s how we train our associates and how we educate the customer to train for a marathon or prepare for the basketball game. So linking that technology and having the store people be as informed as the customer coming in with their smartphone is what's really going to be important.”


John Hayes,
Chairman and CEO, Ball Corporation
Watch the video

“When we talk about being close to the customer, it starts with me and extends all the way down through the organization. I often wonder if our people are on their payroll. They’re constantly working with them, and it’s not just working with the procurement or supply chain people. They’re working with their innovation teams, they’re working with their marketing teams, their branding teams, their channel delivery teams to really understand the customer’s need.”

“The one thing I think is extraordinarily important, and that the retail community in general struggles with, is demographic shifts away from their bread-and-butter customer. We have increasing populations in the ethnic and minority populations in the United States and retailers don’t do a particularly good job addressing that change. The winners are going to be companies that aggressively pursue that customer.”
Daniel B. Hurwitz, CEO, DDR Corp.

“In terms of demographics, we see aging populations in much of the developed world except for the United States. As a result, we have to appeal to mature consumers with innovations like Caffeine Free Coke Zero, for example. And we have to make sure our brands are connecting strongly with teens and their moms, helping the next generation actually fall in love with our brands, starting with Coca-Cola.”
Muhtar Kent, Chairman and CEO, The Coca-Cola Company

“We know that Millennials and younger people like to go to stores. We also know they like to be online. How we hook that up with the stores is going to be important. It’s how we train our associates and how we educate the customer to train for a marathon or prepare for the basketball game. So linking that technology and having the store people be as informed as the customer coming in with their smartphone is what's really going to be important.”
Ken Hicks, Chairman and CEO, Foot Locker, Inc

“When we talk about being close to the customer, it starts with me and extends all the way down through the organization. I often wonder if our people are on their payroll. They’re constantly working with them, and it’s not just working with the procurement or supply chain people. They’re working with their innovation teams, they’re working with their marketing teams, their branding teams, their channel delivery teams to really understand the customer’s need.”
John Hayes, Chairman and CEO, Ball Corporation

Business implications
  • Pay attention to how expectations are being set, not only in your industry but everywhere. Experience advances in one industry are shaping customer expectations in another. For example, customers are pushing airlines to offer high-quality service (great staff interactions, refundable purchases, etc.) and act like trusted retailers, rather than just a way of getting them from point A to point B.

  • Greater analytical precision is necessary, not only to grow revenues but also to manage costs by prioritizing investments on creating the right experience for the target customer. For example, an online retailer that stands out for its customer service experience wants to reduce its shipping costs. It can identify the customers that truly value frequent deliveries and continue to offer them that while saving on costs with other customers. It can also have a tiered pricing strategy or multiple price points for different service levels, and charge its most valuable customers a premium for extra service.

  • Making operating models responsive to the ever-changing and always-demanding customer requires a cultural shift that challenges established functions and hierarchies. Ultimately, it’s about empowering people closest to the customer to take decisions that matter.
Connect with our leaders
Paul D'Alessandro
Principal, Customer Leader, Health Industries
Tel: +1 (312) 298 6810
Tom Puthiyamadam
Principal, Customer Leader, Product & Services Industries
Tel: +1 (646) 471 1490
Dean Nicolacakis
Principal, Customer Leader, Financial Services
Tel: +1 (415) 498 7075