Omni Channel Retail Forum Breakfast – October 2014
Christine de Largy is International Managing Director, Impact Executives, Head of the Retail/Consumer Practice and Chair of the Harvey Nash Executive Search, UK Board Practice. Christine is passionate about the digital transformation of consumer businesses and hosts an omni retail forum to facilitate debate around the issues. She also sits on the board of IORMA, the International Omni-channel Retail Markets Association.
The question discussed this time was ..‘to what extent do businesses need to change their measures of performance and restructure their organisations to develop a new target operating model to optimise on their success in an Omni world?’
What should be measured?
- The challenge is to identify the strategic leavers that need to be measured for example customer behaviours and Pippa cited some examples from Easyjet.
- Analysing exactly what adds value or destroys value is critical. One unprofitable route may truly be a “dog” another have strategic value because of the competitive landscape.
- (This reminds me of the old balanced business scorecard that we used to use within the executive board)
- Caution: The other problem is that Kpi’s tend to be managed to make management look good.
Forester has identified three core measures of customer experience:
- How enjoyable are you to do business with?
- How easy are you to do business with?
- How effective are you at meeting your customer’s needs?
And Google was mentioned for saying that data needs to make you heavy on insight to make you rich. Also Berners-Lee said that computers are getting smarter but humans are not so the expertise in turning data into useable information is key.
Organisations need to refocus measurement on customer profitability not store or category profit. Businesses founded as mail order business have a head start on this.
- The leadership team should be the most demanding customer and personally test and experience the customer journey.
- It was noted that experience can be a barrier to new ways of working and this needs to be identified and managed
- Payment companies hold a huge amount of data about customer buying habits. They know what is selling in real time.
- Speech analytics within a contact centre environment can help inform customer insight.
- The challenge is to be able to predict future demand.
- Marketing and IT need to come together but they are often in competition for budget and resources but they are both about creating a frictionless journey / purchase for the customer and one cannot deliver without the other.
- “Easy is the new black” Dr Nicola MillardBT futurologist.
The challenge then is how to continually innovate and anticipate customer aspirations, to make doing business easier for your customers, so they engage with your organisation in preference to others. Perhaps a topic for our next forum
About Impact Executives Ltd Impact Executives is a leading interim management provider to organisations of every size in the UK and globally. Originally formed as a specialist practice within PA Consulting Group, over the past 25 years Impact Executives has helped over 2000 companies, including more than two-thirds of the FTSE 250 – find the very best executive interim management talent. Clients choose to work in partnership with Impact Executives because of our proven ability to offer clients immediate solutions to improve their organisation’s performance.
With offices covering the UK, continental Europe, Nordics, Asia Pacific and Australia, Impact Executives is part of the global services consultancy Harvey Nash Group plc, giving clients and interim managers the confidence that we have the resources, expertise and focus to deliver results – fast.
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