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The New, Customer-Centric Retail Model

Retail 2020

August 09, 2012 by Pierre Mercier, Rune Jacobsen, and Andy Veitch
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In This Article
  • Until recently, retailers typically organized themselves by function and category.

  • Few companies thought about the customer experience as an integrated whole.

  • An unwavering customer focus—critical to success in today’s changing industry—is transforming how retailers think of their business.

 

More on Retail 2020

In the past, retailers typically organized themselves by function and category. Functions such as marketing, category management, retail, online, customer relationship management, real estate, and logistics were solely responsible for the decisions made within their silos. Few companies thought about the customer experience as an integrated whole.

According to BCG's Retail 2020 report, today's forward-looking retailers are augmenting this model by segmenting consumers on the basis of their shopping habits and spending levels, and ensuring their organizations are hard-wired to meet the needs of their highest-value customers. This customer-centric model is critical now that buyers have become more powerful and discriminating.