Deloitte Uk Consumer Review Customer Experience PDF

The Deloitte Consumer Review
CX marks the spot: Rethinking the

customer experience to win
November 2016
The Deloitte Consumer Review | CX marks the spot: Rethinking the customer experience to win
Contents
Foreword01
Executive summary 02
At a glance 04
Serving a market of ‘one’ 06
Focusing on what the business wants to be known for 14
Defining the customer experience 17
What about the rest of the value chain? 20
Appendix – Consumer research findings 23
Endnotes 31
Contacts 32
About this research

The research featured in this report is based on a consumer survey carried out by an independent market research
agency on behalf of Deloitte.
In this publication, references to Deloitte are references to Deloitte LLP, the UK member firm of DTTL.
Please visit http://www.deloitte.com/view/consumerreview for additional content related to the Consumer and Industrial
Products industry.
Foreword
Welcome to the latest edition of the Deloitte Consumer Review.

This edition focuses on how the customer experience is fast
becoming a tool for differentiation.
Every consumer wants a different experience when shopping and that ’experience’ has become the
differentiating factor for many successful business models. However, businesses are finding it increasingly
difficult to predict what consumers want as their expectations continue to change.
Deloitte research shows that the experience plays an important role in the consumer’s decision to buy a
product or service. Indeed, when consumers were asked what was important when making their decision,
over half cited the overall enjoyment of the shopping experience.
How should businesses go about providing their consumers with the best experience possible? Businesses
need to become more agile and flexible to respond to consumer demands in real time. Focusing the entire
company on delivering a positive consumer experience will be critical for future growth.
With rising consumer expectations driving change across the entire value chain, how can business-to-
business companies integrate the end-consumer demands into their delivery model? In addition, how can
they learn from the interactions business-to-consumer companies have with their consumers and replicate it
with their trade customers?
We hope this report provides the insight and data needed to understand both the opportunities and
challenges the customer experience presents, and welcome your feedback.
Richard Small
Partner, Deloitte Digital, Consumer and Industrial Products
01
Executive summary
Consumers have become increasingly comfortable interacting with

brands in a seamless way, switching between channels and allowing
their data to be used to provide a personalised experience.
According to Deloitte research, more consumers are now purchasing products online than in store. However
consumers have become less tolerant of brands that do not provide an easy and seamless experience.
Businesses are now being forced to focus their efforts and investments on developing the capabilities to sell
across channels while transforming their operating model to serve a market of ‘one’. The additional complexity
and cost of these new channels and services have made delivering a consistent experience more difficult. New
channels and services have increased the potential risks along the path-to-purchase, resulting in negative
experiences for the consumer.
Focusing the entire company to deliver a positive consumer experience will be key to securing new growth
opportunities. This has become even more important given the exponential growth in start-up and technology-
led competitors eager to fill any gap they spot in the market.
To rethink the customer experience, businesses need to map the different ways consumers wish to connect with
their brand and develop the appropriate capabilities while aligning their resources accordingly. Deloitte research
shows that across the shopping journey, from finding inspiration to completing a transaction or sharing their
experience with others, consumers have many paths-to-purchase.
Businesses also need to get to know consumers better. Legacy research tools are no longer fit for purpose.
In addition to traditional consumer insight methods, businesses need to use advanced tools to collect the right
data about individual consumers and use it to respond in real time to their specific needs.
Establishing a lasting relationship with consumers is based not only on giving them what they want or knowing
them well, but also on gaining their trust. Deloitte research shows that compared to 2014 there has been an
increase in the number of people claiming they do not trust anyone to provide honest feedback.
A strong customer experience can not only lead to stronger financial performance but also form the basis
for competitive differentiation. Successfully differentiating the brand both in terms of products and the
experience can have a positive impact on a company’s bottom line with higher conversion rates and increased
customer loyalty.
02
Having a customer experience vision will not be enough unless the governance is in place to implement and
reward it. The customer experience needs to be a strategic priority, not only at board level, but also as part of
a vision shared across the entire company where every function believes they play a critical role in the overall
customer experience.
Aligning the business functions to implement the customer experience vision is not always straightforward.
Businesses cannot do it all and need to be strategic in deciding what they want the company to be known for
and act on it.
There are a number of practical steps a company can take when seeking to optimise its customer experience.
1. Diagnose the ‘as-is’
2. Set a realistic ‘to-be’ goal of what it wants to achieve
3. Set out clear and actionable next steps to implement its vision.
Having set a clear goal for the customer experience, companies need to prioritise what is required
which includes:
1. Correct – lower effort and/or investment, tactical quick wins
2. Optimise – medium effort and/or investment, optimise existing capability
3. Disrupt – higher effort and/or investment, disrupt and innovate.
Finally, collating the appropriate measures of customer experience will be important to assign customer
experience performance metrics and staff responsibilities across the business, not just to the front office.
Making customer experience measurement an inherent part of the reward programme will also be critical
in promoting a customer-first strategy.
Changing consumer behaviour has potential consequences across the entire supply chain serving the
business-to-consumer (B2C) sector. Business-to-business operators (B2B) also need to respond to the changing
behaviours of their own end-consumers and can learn some lessons from consumer-facing businesses.
In future the distinction between B2B and B2C is likely to become less clear. And, in today’s digital world, it is
more and more about the end-consumer. The overall customer experience will be determined by how seamless
and effective the experience is across the entire value chain.
03
At a glance
Online has overtaken in-store purchasing for the first time
Products
vs
45% in-store
48% online
Services
vs
29% in physical location
58% online
Customer journeys are complex...and paths-to-purchase vary across categories
Clothing and footwear: Electrical equipment:
Online Online
32% 59%
In store In store
66% Click & collect
4% 36% Click & collect
12%
Home delivery Home delivery

22% 46%
NB. Percentages are of UK consumers who made a purchase in the last three months
04
Over half of consumers say that the overall enjoyment of

their experience is important in their decision to buy
a product or service.
Trust in reviews is eroding
Fewer than 1 in 10 now trust ...but 1 in 2 consumers still trust family

retailers... and friends for honest feedback
2014 2016 2014 2016
vs vs
16% 7% 60% 58%
Next steps for rethinking the customer experience
Have a clear goal and decide the priorities for your CX strategy:
How much investment is needed?
Correct Optimise Disrupt
Low investment Medium investment High investment

Tactical quick wins Optimise existing skills Disrupt and innovate
05
Serving a market of ‘one’
Consumer expectations are constantly evolving making delivering a

positive experience more difficult.
Challenges in serving a service, over half of consumers consumer. In the midst of all the
market of ‘one’ mentioned the overall enjoyment transformations businesses are
For businesses it is getting of the experience of purchasing going through, the old axiom that
increasingly difficult to predict the product or the service (see ‘the consumer always comes first’
what consumers want, especially Figure 2). might just be getting lost.
as digital technology evolves and
consumers’ expectations continue As a result businesses are being In their effort to develop a
to change. Consumers not only forced to focus their efforts and consumer-centric business model,
expect personalised products investments on developing the companies are faced with some
and services as standard, they are capabilities to sell across channels fundamental issues such as
also embracing different ways of while transforming their operating removing the barriers between
buying or enjoying products and model to serve a market of ‘one’. In the different functions, managing
services. According to Deloitte doing so businesses must review legacy technologies, finding cost-
research, more consumers are their legacy systems, rethink efficient ways of serving the more
now purchasing products online how they collate and use their complex nature of consumers’
than in store. While nearly half consumers’ data, and align their shopping journeys and managing
of consumers bought a product resources and staff towards new the necessary cultural change
online (48 per cent), 45 per cent ways of serving consumers. that comes with transforming any
bought it in store. In the service business model.
sector people are even more likely However, the additional
to complete their purchase online complexity and cost of these Resolving these issues is
(58 per cent). More and more new channels and services have difficult and businesses need
consumers are developing a taste made delivering a consistent to choose where to focus their
for the additional convenience and seamless experience more efforts whether it is the website
these new channels and services difficult. With the proliferation of experience, the mobile site, the
offer (see Figures 1, 5 and 6). choice, channels and influences in-store experience, the loyalty
consumer expectations are programme or the omnichannel
The research also showed that changing faster than businesses experience. Aligning the entire
the share of ‘the experience’ in are able to respond to. New company on delivering a positive
the decision to buy a product channels and services have consumer experience will be
or service is significant. When increased the potential risks along key to securing new growth
asked what was important in the path-to-purchase, resulting opportunities.
their decision to buy a product or in negative experiences for the
06
Figure 1. Channel used to buy a product Mapping complex

% UK consumers who made a purchase in the last three months consumers’ journeys
Thinking specifically about where and how you bought the product, Improving the customer
which one of the following did you do?
experience has to start with
Buy in-store 40% a better understanding of
Buy online using desktop/ laptop and delivered to home 28% consumers’ experience across
Buy online using a tablet and delivered to home 8% each step of the shopping journey.
Order in-store for home delivery Deloitte findings reaffirm what
5%
Buy online using desktop/ laptop and delivered to the
most companies appreciate, but
4%
store for collection often fail to respond to, which is
Buy online using smartphone and delivered to home 4% the need to commit their resources
Buy online using a desktop/ laptop and delivered to a
third party location 1% and investments and reshape
Buy online using a smartphone and delivered to the
1% their operations to serve a market
store for collection
Buy online using a tablet and delivered to the of ‘one’. Not only will shopping
store for collection 1%
Buy online using a tablet and delivered to the
journeys be different based on
1%
third party collection the ‘missions’ consumers might
Buy from a catalogue/ mail order 1% be on, so too, will consumers’
Buy online using a smartphone and delivered to a expectations of the experience
third party location 0%
they receive. Businesses need to
Buy via TV shopping 0%
map the different ways consumers
Other 7%
wish or expect to connect with
their brand to develop the
Source: Deloitte research
appropriate capabilities and align
their resources accordingly. This
has become even more important
Figure 2. Important criteria in decision to buy
% UK consumers who made a purchase in the last three months given the exponential growth
How important were each of the following in your decision to buy this product or service? in start-up and technology-led
competitors eager to fill any gap
Transparency of prices 80% they spot in the market. With every
Overall level of convenience 78% new business model offering a
better experience, consumers’
Clarity and usefulness of product/ service information 67%
Ease of navigating the website to research or buy the expectations grow as does the
product/ service line 60%
pressure on traditional businesses
Delivery timeliness and accuracy (if relevant) 54% to adapt and transform their
Overall enjoyment of the experience of purchasing the
product/ service 56% business models.
Time needed to complete the purchase 55%
Deloitte research shows that
Ease of communication overall 55%
The company’s appreciation of your specific needs
across the shopping journey, from
50%
at the time finding inspiration to completing
a transaction or sharing the
Source: Deloitte research experience with others, consumers
have many paths-to-purchase.
07
Looking at the first few stages of be different depending on whether they want, they are looking to find
the shopping journey, our findings they are looking for inspiration where the product or service is
show that consumer activities will or whether, once they know what available (see Figure 3).
Figure. 3 Different stages of the shopping journey

% UK consumers who made a purchase in the last three months
Imagine
!"#$!%& Locate & find Choose & select
Visiting the website of the company
%&'$()'*)+#"$)',-'$()'.,/01%2'-3,/'*(".('4'/15)'/2' Visiting the website of the company Visiting the website of the company
from which I made my purchase
063.(1#) 25% from which I made my purchase 25% from which I made my purchase 36%
Visiting the website of other companies Visiting the website of other companies
Using a web search engine (e.g. Google) 20% selling similar goods or services 17% selling similar goods or services 20%
Checking for discounts Visiting the store or physical location
%&'$()'#$,3)',3'0(2#".1;';,.1$",%'-3,/'*(".('4'/15)'/2'
063.(1#) 19% Using a web search engine (e.g. Google) 15% from which I made my purchase 15%
&'$()'*)+#"$)',-',$()3'.,/01%")#'#);;"%&'#"/";13'&,,5#',3'
Visiting the store or physical
location Visiting the store or physical location
#)3?".)#
from which I made my purchase 15% from which I made my purchase 14% Using a web search engine (e.g. Google) 15%
Visiting the website of other companies
selling similar goods or services 15% Checking availability/ stock 12% Checking for discounts 13%
Considering reviews/recommendations Considering reviews/recommendations
from other customers 15% Checking for discounts 11% from other customers 11%
Considering recommendations from Considering reviews/recommendations
friends and family 13% from other customers 8% Checking availability/ stock 11%
Considering reviews/ recommendations Considering recommendations from
from independent experts 9% friends and family 8% Using a price comparison website 9%
Using a price comparison website 8% Visiting other stores than the one from 8%
Using a price comparison website 9% which I completed my purchase
Browsing the company’s catalogue/ Visiting other stores than the one from Considering recommendations from
brochure 8% which I completed my purchase 6% friends and family 8%
Shopping
!"#$!%& – Products Shopping
!"#$!%& – Services
Channel used
%&'$()'*)+#"$)',-'$()'.,/01%2'-3,/'*(".('4'/15)'/2' Channel used
!"#"$"%&'$()'*)+#"$)',-'$()'.,/01%2'-3,/'*(".('4'/15)'/2'
063.(1#) 063.(1#)
Online 48% Online 58%
In-store 45% Physical location 29%
Delivery method used
%&'$()'#$,3)',3'0(2#".1;';,.1$",%'-3,/'*(".('4'/15)'/2'
By telephone
!"#"$"%&'$()'#$,3)',3'0(2#".1;';,.1$",%'-3,/'*(".('4'/15)'/2'
10%
Click063.(1#)
& collect 6% Technology
063.(1#) used
&'$()'*)+#"$)',-',$()3'.,/01%")#'#);;"%&'#"/";13'&,,5#',3' !"#"$"%&'$()'*)+#"$)',-',$()3'.,/01%")#'#);;"%&'#"/";13'&,,5#',3'
Third#)3?".)#
party collection point 2% Desktop
#)3?".)# 46%
Home delivery 45% Tablet 8%
Technology used Smartphone 4%
Desktop 33%
Tablet 10%
Smartphone 5%
Transact
!"#$!%& Service & Advocacy Share
Paid by using a credit/debit
%&'$()'*)+#"$)',-'$()'.,/01%2'-3,/'*(".('4'/15)'/2' card and Recommended the product/service
entering
063.(1#)a pin 25% Call centre 3% to friends and family 11%
Paid by using a contactless credit/debit Posted a comment on my own social
card 15% Visited a store 4% media page 5%
Paid by cash Posted a comment on the service provider’s
%&'$()'#$,3)',3'0(2#".1;';,.1$",%'-3,/'*(".('4'/15)'/2'
063.(1#) 13% Twitter account 1% or product manufacturer’s webpage 3%
&'$()'*)+#"$)',-',$()3'.,/01%")#'#);;"%&'#"/";13'&,,5#',3'
Facebook page Wrote a review on an independent
#)3?".)#
Paid using PayPal 9% 1% review website 3%
Message board or forum Emailed the service provider's or product
Paid using a bank transfer 4% 1% manufacturer's customer service 2%
Posted a comment on the service provider’s
Paid using gift vouchers 2% Live chat on company website 1% or product manufacturer’s social media page 1%
Paid by cheque Posted a message/comment on a
1% Video chat on company website 1% consumer forum(s) 1%
Other Called the service provider's or product
1% manufacturer's customer service 1%
N/A – I didn’t do this 90%
08
When comparing shopping Figure. 4 Where does inspiration come from?

behaviours across product and % UK consumers who made a purchase in the last three months
service categories, the research Thinking specically about what you did before completing a purchase to find inspiration
also shows very different journey and help you decide what to buy, which if any, of the following influenced you?
(Please select all that apply)
behaviours. For example, in the
more commoditised categories Major
All Groceries household Train Packaged
such as shopping for groceries categories in store appliances tickets holidays
or train tickets, consumers will Visiting the website of the company from
25% 3% 45% 10% 50%
typically engage in very few which I made my purchase
activities because they know Using a web search engine 20% 2% 35% 5% 25%
exactly what they are looking Check for discounts 19% 14% 29% 11% 21%
for. When the purchase requires
Visiting the store or physical location
more consideration, consumers from which I made my purchase 15% 19% 27% 1% 14%
are more likely to engage in Visiting the website of other companies

15% 2% 34% 2% 25%
selling similar goods or services
more activities before making Considering reviews/recommendations
15% 1% 35% 2% 28%
a decision. This is particularly from other customers
Considering recommendations from
true for categories such as major friends and family 13% 4% 19% 4% 17%
household appliances or packaged Considering reviews/recommendations
from independent experts 9% 0% 27% 2% 20%
holidays (see Figure 4).
Using a price comparison website 9% 1% 18% 4% 7%
Browsing the company’s
8% 0% 10% 2% 22%
With every new
catalogue/brochure
Check for vouchers/coupons 8% 7% 16% 2% 2%

business model Receiving offers via email 7% 4% 5% 4% 14%
offering a better Visiting other stores or physical locations than
6% 4% 12% 2% 3%
the one from which I completed my purchase
experience, Reading reviews in the press or
6% 1% 9% 1% 9%
magazines
consumers’ Talking to staff 5% 1% 8% 6% 14%
expectations grow Using an app 4% 1% 1% 6% 1%
as does the pressure Looking for information on socia

media sites
3% 2% 3% 1% 5%
on traditional Looking for information on blogs 3% 0% 5% 0% 3%
businesses to adapt Considering recommendation from staff 2% 0% 3% 1% 3%
and transform their Calling customer service 1% 1% 2% 1% 2%
business models. Use an in-store touchscreen 1% 1% 1% 2% 0%
Receiving offers via social media 1% 1% 1% 0% 0%
Other 4% 2% 3% 4% 5%
I didn’t do anything 29% 58% 6% 58% 10%
09
Beyond the initial stages of the channels, using different technologies the preferred options for categories
path-to-purchase where consumers and delivery methods depending on such as major household appliances
are looking for inspiration, they are the category. Our research shows or flights, while in-store shopping
increasingly expecting to pick and that the online channel and home remains the main channel for
choose from a selection of shopping delivery are increasingly becoming groceries (see Figures 5 and 6).
Figure 5. Channel, delivery methods and technology used by product category

media subscription
Groceries instore
Major household
Furniture and/or
Groceries online
based meal kits
Clothing and/or
Sports and/or
Books, media
Music and/or
leisure goods
Subscription
homewares
equipment
All product
appliances
categories
Electrical
footwear
services
Car
Channel used
In-store 45% 8% 94% 0% 58% 31% 6% 66% 56% 34% 36% 67%
Online 48% 91% 4% 100% 43% 59% 58% 32% 42% 59% 59% 14%
Delivery method used
Click & Collect 6% 6% 0% 6% 13% 1% 5% 4% 5% 8% 12% 2%

Third party collection point 2% 0% 2% 0% 2% 3% 5% 5% 1% 2% 3% 1%
Home delivery 45% 93% 4% 95% 29% 59% 55% 22% 43% 65% 46% 16%
Technology used
Desktop 33% 57% 3% 67% 27% 43% 45% 22% 28% 46% 43% 6%
Tablet 10% 21% 2% 6% 10% 15% 7% 7% 6% 11% 15% 4%
Smartphone 5% 13% 0% 28% 5% 3% 10% 2% 4% 4% 2% 3%
Figure 6. Channel and technology used by service category

Tickets for a day/
accommodation
Train tickets
evening out
categories
All service
Packaged
holidays
Meal out
Car hire
Hotels/
Flights
Channel used
Online 58% 54% 10% 79% 38% 60% 80% 96%
Telephone 10% 5% 17% 13% 1% 18% 17% 1%
Physical location 29% 37% 72% 2% 56% 20% 3% 3%
Technology used
Desktop 46% 40% 5% 68% 31% 46% 59% 81%
Tablet 8% 4% 2% 6% 4% 12% 18% 13%
Smartphone 4% 10% 3% 5% 3% 2% 3% 2%
10
Get to know the individual incentivising or rewarding them In addition to

Beyond understanding the with gifts or money. But this
path they take to completing a resulted in a backlash and an traditional consumer
transaction, businesses need increase in the number of people insight methods
to get to know consumers as not trusting any reviews. Deloitte
individuals better. Businesses research shows that compared such as focus groups
need to rethink their consumer to 2014 there has been an or segmentation
segmentations to focus more on increase in the number of people
serving an audience of ‘one’ to claiming they do not trust anyone surveys, businesses
offer personalised experiences to provide honest feedback. need to use
that are timely and relevant to However, this lack of trust is
a specific individual. Businesses perhaps directed more at the advanced tools to
should move beyond simple company rather than independent collect the right data
personalised recommendations sources of feedback. The research
to more genuine real-time shows that consumers’ trust in about individual
personalisation and targeting. retailers and manufacturers has consumers and use
Legacy research tools are no declined by more than half since
longer fit for purpose. In addition 2014. Businesses need to act, as it to respond in real
to traditional consumer insight at risk is the erosion of consumers time to their specific
methods such as focus groups or trust in businesses’ ability to
segmentation surveys, businesses provide honest information about needs.
need to use advanced tools their products and services, not
to collect the right data about the importance of independent
individual consumers and use it reviews which will more and more
to respond in real time to their be the main source for product or
specific needs. Businesses are now service information (see Figure 7).
able to ‘listen’, for example using
social media and to ‘remember’ by
collating and storing personal data
Figure 7. Most trusted sources for information
and preferences to avoid asking % UK consumers
consumers the same question In general which of the following do you trust to provide honest feedback on
twice and recognising them when product/ service information and reviews? (Please select all that apply)
they next interact with the brand. 58%
Family/friends 60%
Customer reviews 51%
The issue of trust 60%
Establishing a lasting relationship Independent product/service experts 33%
43%
with consumers is based not only Store staff/retailer website 7%
16%
on giving them what they want but 5%
Product manufacturer/service provider 12%
also on gaining their trust. Having
Other 1%
appreciated the importance of
Not applicable – I don’t trust anything or 15%
customer reviews in improving anyone to provide honest feedback 9%
sales conversion, many companies
have started to encourage 2016 2014
consumers to post reviews by
11
Companies need to adapt their operating model
Adj
ten ust
Lis
Company’s Other
website website
Search
Recommend
engine
I didn’t do this Visit

store
Write review Customer
reviews
Email Company’s
Call centre company website
Search engine
Imag
are
rt
Reac
ine
Sh
Suppo
Visit store
h
Twitter account
advocac d
n
Other website
y
I didn’t do this
and
Loca d
Service a
Customer
fin
te
Message board journey Check stock

Company’s website
Visit store
se e
t
Tr a
le c
d oos
ac
ns
C
h
t
an
Credit/debit S h o p pin g Company’s
card website Visit store
Contactless
card
Bank transfer Other

website
Search engine
Tr
ge
Paypal Online Desktop

an
ga
Home
sa
En
t
c
Cash Discounts
Visit store Tablet
Click & collect
Cha gy
nnel nolo
Tech
Delivery
Propose
12
There are many paths to purchase
Imag
are ine
Sh
advocac d
Grocery
Service an
y
an
Loc find
d
in store
ate
customer
journey
se o s e
t
Tra
le c
ac Ch d
o
ns
t
S h o p ping an
Imag
are ine
Sh
advocac d
Service an
Household
y
an
Loc find
d
appliances
ate
customer
journey
se o s e
t
Tra
le c
ac Ch d
o
ns
t
S h o p ping an
13
Focusing on what the business

wants to be known for
The share of ‘the experience’ in the overall business proposition
is growing. Focusing the entire company on delivering a positive
consumer experience will be key to securing new growth opportunities.
What is the customer unique way, it will not only gain a It was Aristotle who
experience? strong competitive advantage but
The customer experience can will also have a positive impact said “the whole is
be defined as the sum of all the on the bottom line. Typically, greater than the
interactions a consumer has with companies will focus on a particular
a brand as well as their opinion part of the experience in which to sum of its parts” and
of the brand. Interactions include lead. Apple aims to inspire; Amazon this is certainly true
visiting the website or store, owns the online fulfilment space
speaking to a member of staff and John Lewis differentiates itself with the customer
or reading a marketing email. on the customer service skills of experience. And
The opinion of the brand, on the its ‘partners’.
other hand, is often driven by the every part of the
feelings consumers have when At the core of a great customer company has a role
they interact with or think about experience is the ability to provide
the brand. Customer experience a seamless experience regardless to play in consumers’
is holistic in nature and does not of touch point, yet many experiences.
focus on any single interaction or companies are a long way from
feeling, but rather on the impact of achieving this.
all of these things together.
It was Aristotle who said “the Analysis done for the retail In the first group are a
whole is greater than the sum of sector by Deloitte Consulting in number of retailers competing
its parts” and this is certainly true the US shows that experience predominantly on value and
with the customer experience. differentiation can lead to stronger convenience. These retailers
And every part of the company financial performance indicators focus on driving down operating
has a role to play in consumers’ especially when combined with costs to offer customers better
experiences. product differentiation.1 The team value and convenience. The
developed a framework to group second group of retailers focus
Why the customer experience retailers into one of four cohorts. on creating highly differentiated
matters in delivering growth Each retailer was given a score experiences but sell a set of
Customer experience can be based on the level of product products not that differentiated
the key source of competitive and experience differentiation, and often available at many
differentiation. If a business from low to high. By plotting other retailers. They also focus
can create an experience that each retailer along these two on providing easy and enjoyable
seamlessly connects all the dimensions they were able to interactions with staff, offering
interactions a consumer has with develop four distinct groupings education and entertainment, and
their brand, and does this in a (see Figure 8). personalised content.
14
The third group of retailers Figure 8. Experience vs product differentiation

compete with highly differentiated
High
products and services that cannot Highly differentiated Highly differentiated

be found elsewhere, although the offering offering & experience
brand experience offered is less
Product differentiation
differentiated. Finally, in the fourth

cohort, there are a small number
of retailers who successfully
offer both highly differentiated Value & Highly differentiated
convenience experience
products and experiences. They
understand consumers and offer
experiences and unique products
Low
or services that address, or even

surpass consumers’ needs and Low Experience differentiation High
expectations.
Source: Deloitte Consulting 2015
The analysis also showed that

retailers competing on both
highly differentiated offerings Businesses cannot do it all and is unique about it, who the
and experiences, delivered solid need to be strategic in deciding consumers are and what the
EBITDA growth of almost 15 per what they want the company to issue is the product or service will
cent per year and revenue growth be known for and act on it before help them to solve.
of nearly 11 per cent. In contrast, their competitors. This can range
retailers competing on value from simply improving one aspect Creating a clear, communicable and
and convenience had compound of the existing experience, to meaningful vision for the customer
annual revenue growth of 3.5 per developing entirely new innovative experience is critical in ensuring
cent and experienced a negative and engaging propositions to meet that the business transforms
compound annual EBITDA growth consumer needs. towards a more customer
of 3.2 per cent. experience-focused model.
When considering the level
Defining where to play of product and experience
The changing environment differentiation in which to invest,
described in the first section points businesses need to achieve
to an opportunity for businesses a balance between the value
that can find new ways to remain their product or service offers
connected to consumers and consumers and the cost of
create value (and margin) by delivering the added experience
differentiating their brand both in and product differentiation.
terms of their products and the Businesses need to define what
experience they offer. the brand stands for, what
15
The customer experience first to make the customer through path-to-purchase

governance model experience vision a priority and and to avoid the silo mentality.
While businesses are eager to second to make it a function However the customer experience
transform their existing model to inherent in the business model. team should not tell the rest of
become truly customer centric, the company what to do but
the reality is that breaking through There are three types of rather coordinate, motivate and
the functional barriers and structures commonly used to empower teams to think of ways to
reviewing existing key performance drive customer experience within serve customers better.
indicators to measure customer an organisation: a standalone
experience is challenging. customer experience team, The business transformation
Transformation is being hindered a customer experience team required for implementing the
by an inherent resistance to within a function, often within the customer experience vision will
change, a lack of leadership, strategy or marketing team, or also have implications for the skill
organisational culture and/or the no specific customer experience set the company will need. The
costs involved in implementing the team. The latter implies a leadership will need to incentivise
required change. multidisciplinary approach where the behaviours that favour
the customer experience strategy implementing the customer
Having a customer experience is driven by a set of processes experience vision. If an executive
vision will not be enough unless across all functions. decides to reward staff based on
the governance is in place to customer satisfaction, and gives
implement and reward it. The The marketing function often customer satisfaction scores
customer experience needs becomes the customer experience equal weighting to other financial
to be a strategic priority, not function by default. However, the performance indicators, there
only at board level, but also conflict inherent in this structure will be a paradigm shift in the
across the entire company is that the customer experience organisational culture.
where every function works group does not own the selling
towards and believes they play channels. In a retail business Ultimately, the successful
a critical role in the overall the store channel and the online implementation of a customer
customer experience. Decisions channel often will have business experience strategy could
around the framework, vision development teams. If there is negate the need for a customer
and direction for the business, a customer experience team it experience team. Companies
including the experience they must play an active role in the might not need a customer team
want their customers to have, governance process for approval if they have the right mechanisms
first needs to be endorsed of any activities that might in place to reward staff based
by the executive leadership. influence the customer experience on customer satisfaction scores.
Without the leadership and new either directly or indirectly. Each Also giving staff the autonomy to
key performance indicators project should be presented to solve customer issues can often
to measure it, changing both a finance and a customer remove some of the barriers that
organisational behaviours will committee. The key role of the prevents the staff, and ultimately
be very difficult. Regardless of customer experience team is not the company, from delivering its
where the company starts on the only to approve the investment for customer experience vision.
path to changing the customer each customer experience project
experience, the goal is twofold, but also to ensure consistency
16
Defining the customer experience
Developing a customer experience model aligned to what the

business wants to be known for.
Approach to rethinking the The market analysis involves an lead the way in omnichannel retail
customer experience assessment of how the company will focus on the entire journey
There are a number of practical fares against the leading direct whereas leading in delivery speed
steps a company can take when and non-direct competitors. Does can be more focused on the latter
seeking to optimise its customer the company lead the market parts of the experience.
experience. in some areas? Themes and
examples from market leaders Once defined the goal should be
1. Diagnose the ‘as-is’ will emerge and should provide tested with the target market.
consumer experience the necessary inspiration. This Companies might find that the
The first task is to assess, with a market analysis should enable areas in which they believe they
minimum amount of detail, the the company to understand should invest are in reality not
existing customer experience to better where they fall below, are important to customers with
understand what is working, what consistent with or lead the market whom they wish to engage.
is not and why. There are two key across their customer experience
lenses through which to consider activities. 3. Set out clear and
this: the customer and the market. actionable next steps
2. Set a realistic ‘to-be’ goal Having set a clear goal for
When considering the customer Once the current customer the customer experience, a
lens, a company needs to assess experience performance has prioritisation exercise is required.
where the ‘pain points’ and ‘magic been measured, the next step Generally, customer experience
moments’ are for their customers. is to determine the company’s investments will fall into three
For example do customers get customer experience ambitions high level categories which are
frustrated with the customer and ensure they match the driven by the anticipated share of
service? Do they enjoy the corporate strategy. Often, due to investment or effort required:
personalised note in the delivery limited resources, companies set
box? A thorough review of the goals in specific areas admitting 1. Correct – lower effort and/or
current customer experience, it is okay to be ‘average’ in other investment, tactical quick wins
using the right insights from areas where it would be difficult
across the business such as to differentiate their product or 2. Optimise – medium effort
primary consumer research and service. There is no clear rule and/or investment, optimise
Net Promoter Scores (NPS)2, will regarding the number of areas in existing capability
help identify where improvements which companies should strive to
are needed. become leaders, and some will be 3. Disrupt – higher effort and/
much broader than others. For or investment, disrupt and
example, a company wanting to innovate.
17
The ‘correct’ category will typically In contrast, some companies can How to measure customer
include changes which are clear shy away from any attempt to experience
from the outset and require disrupt. They might believe they There are three levels of customer
minimal effort or investment to are working towards leading the experience that can be measured:
improve the experience such as market but in reality end up being the overall customer and
optimising the layout of a website too focused on improving what brand relationship, the discrete
homepage, or increasing the they already do or hiding behind customer journeys and individual
number of staff on the shop floor. the performance indicators that events or interactions.3
manage the efficiency of the
‘Optimise’ relates to areas in business. •• Relationship surveys allow
which capability exists but is not customers to indicate their
optimised in the right way, for Companies should be willing to satisfaction about their overall
example inspirational content not invest in innovation even when relationship with the company
being used across touchpoints the returns are not clear because or brand, and are typically run at
consistently. the value lies not only in creating least once a year
tangible customer impact but also
The third category, ‘disrupt’ refers in generating key learnings for the •• Journey surveys allow customers
to the areas where the company business. An iterative ‘test, learn, to indicate their satisfaction at
is looking to lead. Such areas can, and be willing to fail’ approach is vital the end of a particular experience
but not always, require significant if a company is looking to innovate and tend to be based on a survey
investment in strategic initiatives across its customer experience a couple of days after the event
such as rethinking customer and beyond. It requires the buy-in took place
service, loyalty offering or from the board and a cultural shift
content strategy. towards the fail-fast mentality. •• Interaction surveys allow
customers to indicate their
Companies can be overly It is important to note that satisfaction with a specific event,
confident with the disrupt during the end-to-end process for example a transaction or a
category. For example they could of rethinking the customer complaint. Unlike relationship
launch a new channel, product, experience there should be no or journey surveys, interaction
service or process improvement limits to the number of questions surveys are administered
without fully understanding or that are asked. If the assessment immediately or soon after
allowing for the impact on the prompts the company to look wider the event.
wider customer experience, than the customer experience
resulting in a disjointed experience and explore new business models
for consumers. or product offerings, then this
should be an option. It can be a
deeply educational process which
can pose difficult questions and
challenges to the leadership team.
18
Companies often focus heavily Companies should also seek to Making customer
on the relationship metric, which understand the primary drivers
is typically used by the marketing of satisfaction. Once the drivers experience
department. However, this metric are understood, it becomes measurement
can be influenced by a whole much easier to predict scores.
host of external factors making it For example, if a customer an inherent part
difficult to identify the drivers. On reported a broadband fault in their of the reward
the other hand, interaction surveys home and the support team was
can be limiting in that they only able to attend the following day, the programme will be
provide insight into a single event. ability to select from a dedicated critical in promoting
To gain the best measurement of timeslot or receive a phone call
customer experience, a mix of all before the support team arrives a customer-first
three is required. The company might not be as important to the strategy.
should identify correlations customer. Their satisfaction score
between all three and share results of the event could be the same
across the business to drive the without these additional services Companies should
right actions from everyone across which only become critical to the also seek to
the organisation. It is important customer after a few days. Such
not only to share this information insight enables the business to understand the
but also to assign customer make informed decisions between primary drivers
experience performance metrics investing in reducing the time slot
and staff responsibilities across window from four to two hours and of satisfaction.
the business, not just the front investing in providing reliable next Once the drivers
office. Making customer experience day support to attend to faults.
measurement an inherent part are understood,
of the reward programme will be it becomes
critical in promoting a customer-
first strategy. much easier to
predict scores.
19
What about the rest of the

value chain?
Rising consumer expectations are driving change across the
value chain.
B2B organisations can learn The most successful B2C How can they engage with buyers
lessons from B2C businesses businesses focus on delivering and influencers across a range of
Increasing choice of products a seamless experience to their platforms, including social media,
and delivery options, combined consumers. They have used by using compelling content?
with the availability of information digital platforms to ensure that
that can be accessed in real- consumers have access not only A growing opportunity to
time and on-the-go, have raised to relevant information they need go direct
consumers’ expectations. These to make a purchase, but also to Changing consumer behaviour
raised expectations are driving compelling content. They ensure has had a knock-on effect
change across the value chain, that the process is personalised beyond the way people consume
reshaping competition, redefining and that they are able to identify products or services and has
what it means to be a profitable and recognise individuals, potential consequences across
business. Through this process regardless of the shopping the entire supply chain serving the
new demand is created – as are channel they choose to shop business-to-consumer sector. This
new competitors. and ensure that the experience is particularly true for consumer
is tailored to their preferences, brands which have traditionally
Business-to-consumer (B2C) utilising data drawn from their acted as trade suppliers to the B2C
operators have been on the previous purchase behaviour. sector. Chief marketing officers in
frontline of these changes for the Moreover, B2C businesses have companies who have traditionally
last ten years, but as consumer redesigned their supply chains and manufactured consumer goods
influence spreads across more are reorganising their operational are now being asked to rethink
of the value chain, business-to- structures to facilitate this these products’ route to market.
business operators (B2B) are also process. They are also being asked to
being challenged to respond to the start developing the same kind of
changing behaviours of their end- The challenge facing an increasing customer experience and brand
consumers. number of chief marketing officers experience that the CMOs at B2C
(CMOs) at B2B businesses is businesses have been developing
Business buyers are also how can they deliver a similar for years.
consumers. Consumers that experience for their trade
have become used to a certain customers? How can they provide
level of experience and service access to product information
are reluctant to leave this behind and reviews across a range of
when at their workplace. digital platforms and in real time?
20
Consumer expectations As they continue to develop The internet of things (IoT) could
have been raised, not just by expertise in new areas, many also benefit CPG companies.
businesses’ efforts to improve are starting to make acquisitions Consumers can already purchase
the shopping experience, but also or create their own brands that devices for the home which enable
by developments in consumer are designed to trade direct- them to buy washing detergent
technology. Consumers are to-consumer in a way that their or kitchen rolls by pressing a
becoming more demanding traditional brands were not. button or talking to a speaker.
in terms of the amount of the Retailers are likely to continue These devices may well be of more
information they expect to have playing a role in consumer use to CPG companies, that sell
access to regarding the products packaged goods (CPG) companies’ a smaller range of products in
or services they buy. People have business models, because large volumes, than to retailers
become used to having instant consumers are used to buying who sell a wide range of products.
access to information online, and certain types of products at the IoT technology is developing
in addition, they are increasingly supermarket, and because the quickly, and it is likely that in a
interested in where products business model of these brands few years consumers will buy
come from – where ingredients has been designed around this some household products in
were grown, or where a product approach. But digital technology an automated fashion. If a CPG
was made. This means that coupled with changing consumer company decides to develop the
manufacturers are required to behaviour have opened up necessary infrastructure to fulfil
have a more direct relationship new routes to market for CPG these orders directly, it could help
with consumers than they did in companies, and new potential protect or increase margins. It also
the past. future revenue streams. gives the company direct access
to and control of the relationship
Some brands are embracing The number of ways with the consumer, as well as
this change and are playing a manufacturers connect with any relevant data that could be
driving role in its development. consumers will continue to evolve collected.
Digital technology has made it and could possibly expand. The
much easier for manufacturers emergence of the subscription In future the distinction between
and distributors to have a direct business model, for instance, B2B and B2C is likely to become
relationship with their customers, is a particularly interesting way less clear. And, in today’s digital
allowing them to reach and for CPG companies to serve world, it is more and more about
interact with consumers. This consumers, with many of their the end-consumer. The overall
means more than just shopping products suiting the model. For customer experience will be
online – it could mean developing example, Dollar Shave Club, which determined by how seamless and
a dialogue on social media, or sends its customers new razors on effective the experience is across
using digital marketing methods a regular basis, is a subscription the entire value chain.
to give a brand a new dimension model that attracted Unilever’s
and for a business to have a direct interest who acquired the
dialogue with consumers. business in July 2016.
21
In future the distinction

between B2B and B2C is likely
to become less clear. And, in
today’s digital world, it is more
and more about the end-
consumer. The overall customer
experience will be determined
by how seamless and effective
the experience is across the
entire value chain.
22
Appendix
Consumer research findings
Methodology Research design
To better understand consumer experience, Deloitte Respondents were asked about a given category they
commissioned an online consumer survey carried out shopped in over the last three months. They were
by an independent market research agency. The survey asked about each stage of the shopping process
was conducted with a UK nationally representative from finding inspiration to whether they shared their
sample of 2,084 adults aged 18 and over. experience with others.
Figure 9. Consumer activities at the phase of inspiration of the path-to-purchase

% of UK consumers who made a purchase in the last three months
Thinking specically about what you did before completing a purchase to find inspiration and help you decide what to buy, which if any, of
the following influenced you? (Please select all that apply)
Visiting the company from which I made my purchase

Using a web search engine (e.g. Google)
Check for discounts

Visiting the store or physical location from which I made the
purchase
Visiting the website of other companies selling similar goods
and services
Considering reviews/recommendations from other customers
Considering recommendations from friends and family

Considering reviews/recommendations from independant
experts
Using a price comparison website
Browsing the company’s catalogue/brochure
Check for vouchers/coupons
Receiving offers via email

Visiting other stores or physical locations than the one which
I completed my purchase
Reading reviews in the press or magazines
Talking to staff
Using an app
Other
Looking for information on social media sites
Looking for information on blogs
Considering recommendations from staff
Calling customer service
Use an store touch screen
Receiving offers via social media
Visiting the restaurant/hotel from which I made your purchase

Visiting other restaurants/hotels than the one from which I
completed my purchase
Talking to restaurant/hotel staff
Not applicable – I didn’t do anything before to find inspiration
and help me decide as I knew exactly what I wanted to buy
0% 5% 10% 15% 20% 25% 30%
Source: Deloitte research Products Travel/ Hospitality/Leisure services Total

23
Figure 10. Consumer activities when locating the product or service

Thinking specically about what you did to select the product or service you bought (e.g. assessing/comparing different product or service),
which, if any, of the following did you do? (Please select all that apply)
Visit website of the company from which I made my purchase

Visit the website of other companies selling similar goods
and services
Visit the store from which I made the purchase
Check availability/stock
Check for discounts
Consider reviews/recommendations from other customers
Consider recommendations from friends and family
Use a price comparison website
Visit other stores from which I completed my purchase
Talk to in-store staff
Use an app
Browse the company’s catalogue/brochure
Consider reviews/recommendations from independent experts
Read reviews in the press or magazines
Call customer service
Consider recommendations from staff
Look for information on social media sites
Look for information on blogs
Use an in-store touch screen
Visit the restaurant/hotel from which I made your purchase

Visit other restaurants/hotels than the one from which I
Talk to restaurant/hotel staff
None of these
0% 5% 10% 15% 25% 30% 35% 40%

20%
Source: Deloitte research Products Travel/Hospitality/Leisure Services Total
24
Figure 11. Consumer activities when selecting the product or service

Thinking specifically about what you did to select the product or service you bought (e.g. assessing/comparing different product or
service), which, if any, of the following did you do? (Please select all that apply)
Visit website of the company from which I made my purchase

Visit the website of other companies selling similar goods
and services
Visit the store from which I made the purchase
Check for discounts
Consider reviews/recommendations from other customers
Check availability/stock
Use a price comparison website
Visit other stores from which I completed my purchase
Consider recommendations from friends and family
Talking to in-store staff
Browse the company’s catalogue/brochure
Consider reviews/recommendations from independent experts
Use an app
Read reviews in the press or magazines
Consider recommendations from staff
Look for information on social media sites
Look for information on blogs
Call customer service
Use an in-store touch screen
Visit the restaurant/hotel from which I made your purchase

Visit other restaurants/hotels than the one from which I
Talk to restaurant/hotel staff
None of these
0% 5% 10% 15% 20% 25% 30% 35% 40%

Source: Deloitte research Products Travel/Hospitality/Leisure Services Total
25
Figure 12. Channels, delivery methods and technology used to buy the product
Thinking specifically about where and how you bought the product or service, which one of the following did you do?
Buy in-store
Buy online using desktop/laptop and delivered to home
Buy online using a tablet and delivered to home
Order in-store for home delivery
Buy online using desktop/laptop and delivered to the store

for collection
Buy online using smartphone and delivered to home
Buy online using desktop/laptop and delivered to a third party

location
Buy online using smartphone and delivered to store for

collection
Buy online using a tablet and delivered to store for collection
Buy online using a tablet and delivered to third party location
Buy from a catalogue/mail order
Buy online using smartphone and delivered to a third party

location
Buy via TV shopping
Other
0% 5% 10% 15% 20% 25% 30% 35% 40%

26
Figure 13. Channels, delivery methods and technology used to buy the service
Thinking specifically about where and how you bought the product or service, which one of the following did you do?
Book/buy it online using desktop/laptop
Walk-in (e.g. restaurant, cinema, hotel etc.)
Book/buy it in a physical location (e.g. travel agent, agency,

train station etc.)
Book/buy it on the telephone
Book/buy it online using a tablet
Book/buy it online using a smartphone
Other
0% 10% 20% 30% 40% 50%

27
Figure 14. Payment methods used

Which payment method did you use to purchase your product or service?
Paid by using a credit/debit card and entering a pin

(e.g. chip & pin)
Paid by using a contactless credit/debit card
Paid by cash
Paid using Paypal
Paid using a bank transfer
Paid using gift vouchers
Paid by cheque
Paid using mobile pay (e.g. Apple pay)
Other
0% 10% 20% 30% 40% 50% 60%
Products Travel/Hospitality/Leisure Services Total

28
Figure 15. Customer service activities

Did you contact customer service?
Visited a store
Call centre
Twitter account
Facebook page
Message board or forum
Live chat on company website
Video chat on company website
Other
N/A – I didn’t do this
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

29
Figure 16. Consumer activities when sharing their purchasing experience

Thinking specifically about whether you shared your experience about using or enjoying your product or service, which, if any, of the
following did you do? (Please select all that apply)
Recommended the product/service to friends

and family
Posted a comment on my own social media page

(e.g. Facebook, LinkedIn, Twitter etc.)
Posted a comment on the service provider’s or

product manufacturer’s webpage
Wrote a review on an independent review website

(e.g. Trip Adviser, or Reevoo, Trusted reviews etc.)
Emailed the service provider’s or product

manufacturer’s customer service
Posted a comment on the service provider’s or product
manufacturer’s social media page
(e.g. their Facebook page)
Posted a message/comment on a consumer forum(s)
Called the service provider’s or product

Sent a written letter to the service provider or product

Contacted a newspaper or magazine
Not applicable – I didn’t share my experience in

any way
Other
0% 10% 20% 30% 40% 50% 60% 70% 80%
Products Travel/Hospitality/Leisure Services Total
30
Endnotes
1. https://cmo.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-retail-volatility-index-POV.pdf
2. Net Promoter Score (NPS) measures the loyalty that exists between a provider and a consumer. NPS is based on a single question
based on a consumer’s overall interaction with a company which is: how likely are you to recommend our company/product/
service to your friends and colleagues? Net Promoter Score is a registered trademark of Fred Reichheld, Bain & Company, and
Satmetrix Systems
3. http://reprints.forrester.com/#/assets/2/153/’RES91981’/reports
31
Contacts
Leadership team
Nigel Wixcey
UK Industry Leader,
Consumer & Industrial Products
+44 (0)20 7303 5007
nigelwixcey@deloitte.co.uk
Richard Small
Partner, Deloitte Digital
Consumer & Industrial Products
+44 (0)20 7303 7971
rsmall@deloitte.co.uk
Authors
Celine Fenech Rebecca Thomson

UK Research Manager, UK Research Manager,
Consumer & Industrial Products Consumer & Industrial Products
+44 (0)20 7303 2064 +44 (0)20 7007 0891
cfenech@deloitte.co.uk rebthomson@deloitte.co.uk
Ben Perkins Francesca Atkins

UK Research Director, Consultant,
Consumer & Industrial Products Deloitte Digital
+44 (0)20 7007 2207 +44 (0)20 7007 3402
beperkins@deloitte.co.uk franatkins@deloitte.co.uk
Contributors
Oliver Vernon-Harcourt
Partner,
Retail Consulting
+44 (0)20 7007 1628
overnonharcourt@deloitte.co.uk
Romilly Fell
Director,
Monitor Deloitte
+44 (0)20 7303 0786
romfell@deloitte.co.uk
32
Notes
33
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK
private company limited by guarantee, and its network of member firms, each
of which is a legally separate and independent entity. Please see www.deloitte.
co.uk/about for a detailed description of the legal structure of DTTL and its
member firms.
Deloitte LLP is the United Kingdom member firm of DTTL.
This publication has been written in general terms and therefore cannot be relied
on to cover specific situations; application of the principles set out will depend
upon the particular circumstances involved and we recommend that you obtain
professional advice before acting or refraining from acting on any of the contents
of this publication. Deloitte LLP would be pleased to advise readers on how to
apply the principles set out in this publication to their specific circumstances.
Deloitte LLP accepts no duty of care or liability for any loss occasioned to
any person acting or refraining from action as a result of any material in this
publication.
© 2016 Deloitte LLP. All rights reserved.
Deloitte LLP is a limited liability partnership registered in England and Wales with
registered number OC303675 and its registered office at 2 New Street Square,
London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000
Fax: +44 (0) 20 7583 1198.
Designed and produced by The Creative Studio at Deloitte, London. J9984

Deloitte Uk Consumer Review Customer Experience PDF

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Deloitte Uk Consumer Review Customer Experience PDF

Caricato da

Copyright:

Formati disponibili

The Deloitte Consumer Review

CX marks the spot: Rethinking the

About this research

Welcome to the latest edition of the Deloitte Consumer Review.

Consumers have become increasingly comfortable interacting with

1. Diagnose the ‘as-is’

2. Set a realistic ‘to-be’ goal of what it wants to achieve

1. Correct – lower effort and/or investment, tactical quick wins

2. Optimise – medium effort and/or investment, optimise existing capability

3. Disrupt – higher effort and/or investment, disrupt and innovate.

Online has overtaken in-store purchasing for the ﬁrst time

Customer journeys are complex...and paths-to-purchase vary across categories

Clothing and footwear: Electrical equipment:

Home delivery Home delivery

Over half of consumers say that the overall enjoyment of

Trust in reviews is eroding

Fewer than 1 in 10 now trust ...but 1 in 2 consumers still trust family

2014 2016 2014 2016

16% 7% 60% 58%

Next steps for rethinking the customer experience

Correct Optimise Disrupt

Low investment Medium investment High investment

Serving a market of ‘one’

Consumer expectations are constantly evolving making delivering a

Figure 1. Channel used to buy a product Mapping complex

Figure. 3 Diﬀerent stages of the shopping journey

When comparing shopping Figure. 4 Where does inspiration come from?

are more likely to engage in Visiting the website of other companies

Check for vouchers/coupons 8% 7% 16% 2% 2%

expectations grow Using an app 4% 1% 1% 6% 1%

as does the pressure Looking for information on socia

on traditional Looking for information on blogs 3% 0% 5% 0% 3%

businesses to adapt Considering recommendation from staﬀ 2% 0% 3% 1% 3%

and transform their Calling customer service 1% 1% 2% 1% 2%

business models. Use an in-store touchscreen 1% 1% 1% 2% 0%

Receiving oﬀers via social media 1% 1% 1% 0% 0%

I didn’t do anything 29% 58% 6% 58% 10%

Source: Deloitte research

Figure 5. Channel, delivery methods and technology used by product category

based meal kits

Click & Collect 6% 6% 0% 6% 13% 1% 5% 4% 5% 8% 12% 2%

Source: Deloitte research

Figure 6. Channel and technology used by service category

Source: Deloitte research

Get to know the individual incentivising or rewarding them In addition to

Companies need to adapt their operating model

I didn’t do this Visit

Message board journey Check stock

Bank transfer Other

Paypal Online Desktop

There are many paths to purchase

Focusing on what the business

The third group of retailers Figure 8. Experience vs product diﬀerentiation

products and services that cannot Highly diﬀerentiated Highly diﬀerentiated

differentiated. Finally, in the fourth

or services that address, or even

The analysis also showed that

The customer experience first to make the customer through path-to-purchase

Defining the customer experience

Developing a customer experience model aligned to what the

What about the rest of the

In future the distinction

Figure 9. Consumer activities at the phase of inspiration of the path-to-purchase