Study shows supermarkets doing best job of getting close to customers
A new survey has revealed that supermarkets are doing a better job of communicating with their customers in a meaningful way than other businesses.
The 2013 GI Insight Customer Intimacy Index, compiled from a survey of over 1,000 UK consumers, asked participants to rate ‘your supermarket’, ‘your bank’ and other types of business with scores representing levels of familiarity ranging from ‘knows me like a close friend’ to ‘treats me like a total stranger’.
The results show that supermarkets came out far ahead of any other sector with a score of 132, an improvement on their top rating of 126 in the last GI Insight industry Survey in 2010.
GI Insight said the Index shows that industries with frequent transactions and strong loyalty programmes, which give firms the best opportunity to gather and employ consumer data, are most successful at relating to their customers in a relevant way.
Never Miss a Retail Update!Although supermarkets performed strongly, firms in the home furnishings and DIY sector were shown to be doing a poorer job in connecting with customers despite having opportunities for regular contact. Consumers rated these companies 21% below the average, placing the sector alongside other poor performers such as car manufacturers, computer and tablet makers, and alcoholic drinks brands. In addition, clothing brands scored a distinctly average 100.
The survey also found that women have particularly high expectations. Companies across all sectors were shown to find it considerably more difficult to convince female consumers that they were using their data effectively to personalise and tailor customer communications. Furthermore, the only sectors in which companies were ranked higher by women than by men were supermarkets and clothing.
The results show that consumers under the age of 45 rated the firms they deal with more highly than their elders with respondents in the 45-54 age group giving all sectors a particularly low score of 72, which is 28% below the average.
Andy Wood, GI Insight managing director, said: “Most firms in the retail space have the means to gather and utilise customer data to communicate with individual consumers in a meaningful way – especially if they have a loyalty programme – but clearly some are either choosing not to or making poor use of whatever information they have to hand.
“Overall, most companies are falling especially short of the mark when it comes to older consumers. The sheer volume of consumers from older demographics means these people remain a key economic engine that brands ignore at their peril. Too many companies are simply failing to communicate with all their customers in an informed and tailored manner – especially those with more spending power.
“Consumers today expect businesses to know who they are and have some idea of what their needs are – and to reflect that knowledge in their interactions with them. This Index indicates that companies in most sectors need to do more to convince consumers they know them well and value their business.”
