Peter Burggraaff: Benchmarking in TCG Retail
Peter Burggraaff – Associate Director – The Boston Consulting Group will be addressing the European TCG Retail Summit on how one is able to measure the “customer experience” and how this relates to operational and operational and competitive KPIs. We asked him to tell us more…
If you are mainly in an online world you can measure many touch points and customer experiences – and benchmark against other retailers. But how can you do this in a bricks and mortar environment? How can you imitate the online KPIs – such as how many clicks, how many minutes people stay on a page and so on? What can actually be measured, and how can these be transformed into sales, revenues and profits? While you can measure a lot of things – both online and offline – how does this end up becoming a sale? Are there maybe any leading indicators in that customer experience or operational measurement that you can actually manage to ensure that those experiences lead to increasing revenues and profit? If you make a different choice in your delivery model, what does that do to the customer experience, and what, for example, are the differences between home delivery and in-store pick-up? So I want to introduce this concept of customer experiences and operational measurements, linking these to financial KPIs. I will be sharing with the audience some “experience audits”, which are a way to measure the online customer experience – to make it more quantifiable, because customer experience is typically quite subjective. We can use those measures to illustrate what “good” looks like, and what “not good” looks like, cross referencing with examples in other parts of Europe or maybe even globally, in order to measure how well a website is performing.
What can actually be measured, and how can these be transformed into sales, revenues and profits?
Just how can you measure the in-store experience? Recently there has been a great deal of development in beacons, LED lighting and video analysis that can help with such elements as dwell time, through-store routing and so on. A number of retailers are experimenting with ways of tracking and communicating with customers in the store. One way is through the use of mobile apps, which can be used for shopping, but also allow the store to identify the user, when he or she is in the physical store. This is all part of true omnichannel marketing, and while, for the moment not many retailers are able to introduce this kind of “smartness”, this is the direction in which we are heading.