The better the question. The better the answer. The better the world works. У вас есть вопрос? У нас есть ответ. Решая сложные задачи бизнеса, мы улучшаем мир. У вас є запитання? У нас є відповідь. Вирішуючи складні завдання бізнесу, ми змінюємо світ на краще. Meilleure la question, meilleure la réponse. Pour un monde meilleur. 問題越好。答案越好。商業世界越美好。 问题越好。答案越好。商业世界越美好。

How do you find your optimal balance for profitable growth?

The consumer products and retail industry is out of balance

Companies are failing to keep pace with changing consumer needs. Complexity is spiraling out of control. New business models are disrupting the old certainties. The levers that power growth are broken.

Those that over depend on cost efficiencies to boost profits and satisfy shareholders risk irrelevance. They must address long-term structural change by tilting the balance back towards profitable growth.

At EY, we’ll help you find and hold on to the point of balance that ignites performance in your business. We'll do that by asking better questions. Those questions will reveal better responses to disruptive market change and innovative strategies that put you ahead of the competition.

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How can retailers rebuild loyalty?

As retailers are focusing their efforts on winning the customer as though every time is the first time. Retention is taking a back seat. Only 24% retailers in our survey say retention is a top priority, but with 65% believing their loyal customers account for more sales and profit, are they missing an opportunity? So how can retailers rebuild loyalty?

Targeting the loyalty you need

EY - Targeting the loyalty you need

(Click on the infographic to know more)

Staying connected. Do you still need a loyalty program?

Free coffee next time? Penthouse upgrade? Loyalty programs are part of every-day life. But are they still relevant? Retailers spend billions of dollars on loyalty each year. The majority (80%) think they are critical to understanding customer needs and behaviours.

But 84% say their loyalty program is not effective and just 27% feel their loyalty initiatives have a positive effect. Imagine if you redirected resource to more loyalty ideas that work.

So a better question is this. Does loyalty matter for your business and, if so, what strategy will secure the level of loyalty you want, from the customers you want, at a cost that works? Answer that and you can design and run the loyalty program that’s right for your business, if you need one.

EY - Staying connected. Do you still need a loyalty program?

Becoming relevant. How will you get closer to customers?

You must give shoppers what they want. But this is a revolution. Shoppers are behaving in ways that were unimaginable a few years ago.

Despite the pace of change, 28% of retailers tell us they know how to stay relevant. How are they finding clarity in the chaos?

A more rounded view of the customer is part of the answer, one based on a wider range of data sources. Mix what you know with insights from third parties and new doors open. 74% of retailers say this is a strategic priority.

Everyone wants to get closer to the consumer. So how will you get there first?

EY - Becoming relevant. How will you get closer to customers?

Going deep. Can you make tailored offers with live data?

In the Age of the Consumer, we all want to be in a marketing segment of one. A cookie-cutter approach to loyalty won’t work and could be counterproductive - 80% say a “one size fits all” loyalty approach damages profitability.

Shoppers want to buy or even co-create products, offers and experiences that reflect their individual desires. Reach that standard, and you can inspire loyalty without a promise of future reward.

That means capturing and using loyalty-relevant shopper data in real time, at the few key moments when you can truly influence the customer’s emotions. Today, 35% of retailers can collect live data. And 30% can use data to create personalized offers and experiences.

What would it take to close the gap between analysis and action in your business?

EY - Going deep. Can you make tailored offers with live data?

How will retailers measure what matters to manage loyalty?

EY - Measure to manage. How will you find and track what’s working?

Agree your relevant goals, measure what matters and measure it accurately. You can’t rebuild loyalty if those foundations are weak. Best practice here is evolving fast.

Retailers spend billions of dollars on loyalty, but only 44% say they can track their loyalty RoI with accuracy. That lack of insight is a brake on performance.

Measurement must be better and broader. Loyalty program metrics are essential. But so are retention rates, targeted marketing campaign outcomes and others. Good analytics investments are game changing. They cut waste and allow you to reinvest savings in strategies that work.

How will better measurement help you rebuild loyal, profitable relationships?


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EY - Ahmed Reda

Ahmed Reda

MENA Consumer Products and Retail Leader

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