Customer-centric retailing – A new growth perspective for retail
Customer-centric retailing (CCR) is the key to mastering the retail challenge.
CCR is a new retail approach that aims to help retailers understand their customers better, identify the right target segments for their business and address these segments more effectively. It improves their customer focus and offers new insights into customer behavior. Essentially, it puts the customer back at the heart of organizational strategy, underpinning all market-related activities. This requires a new dimension in customer understanding.
CCR offers this new dimension. Specifically, it capitalizes on the potential of loyalty card transaction data, using this data to derive customer segments based on actual purchase behavior rather than just socio-demographic characteristics. It is the key to achieving a comprehensive understanding of customers' purchase behavior and needs.
CCR is more than just a tool for category optimization, however: it is a holistic management approach. To fully leverage its potential, retailers must apply CCR on all levels of the organization and in all functions, backing it up with a systematic change process. A number of major retailers such as Metro, Tesco and Carrefour have already done this and achieved a successful transition to a truly customer-centered organization.