Six Characteristics for
Retail Survival
THE ORGANIZATION OF THE FUTURE
Organizations must transform to open and adaptive networks
that orchestrate the experience from a myriad of partners on
behalf of their customer. Retailers and brands will become
stewards of customers and deliver personalized and relevant
experiences wherever they choose to engage.”
— MARK WEST
CEO of LLX Global Business Services
Retailers and brands must transform their organizations
by embracing the following six characteristics:
I. VISION
What is it? Clear vision for business and management
deeply embedded in all processes.
70%
TIP:
Codify how your organization fits into customers’ lives
and differs from competitors.
Lush Cosmetics has a clear purpose, making
sustainable products and charitable giving their
mission. Their products are 100% handmade, vegetarian,
and ethically sourced. Through their ongoing Charity
Pot program, Lush helps build farming and community
projects from scratch.
say material
or significant
organizational
change is required
to meet customer
demands.*
II. CULTURE
What is it? Test-and-learn process focused on customer
lifetime value and highly collaborative across functions.
TIP:
Continually improve the customer experience
by testing initiatives, measuring the impact,
applying insights, and creating incentives for
employees to cooperate.
To help customers find products faster,
Skis.com became an early adopter of Product
Recommendations, which uses a predictive
intelligence engine to suggest products to
known and anonymous shoppers. The result:
over 7% increase in revenue per visitor.
30% more retailers
than brands cite culture
as the toughest factor
to change.*
III. MARKET INSIGHT
What is it? Formal tracking of customer, technology,
competitor, and disruptor. Rapid evaluation and response.
TIP:
Leadership should regularly communicate with
store associates and determine whether their
insights indicate a threat or an opportunity.
Suitsupply learns about customers from
in-store stylists and features a product center
with items based on local tastes and preferences.
IV. DATA INTELLIGENCE
What is it? Single view of data in real-time. Intelligence is
operationalized. Decisions are automated when possible.
TIP:
• Hire and embed data analysts
• Aggregate customer information into a single view
• Operationalize insights
True Religion brand jeans associates wear Apple
Watches with a loyalty app integration that notifies
them of customer profiles, preferences, and
shopping history.
V. INNOVATION
What is it? Defined and prolific innovation process with
high number of launches, which are meticulously evaluated.
TIP:
Under Armour acquired MapMyFitness, Endomondo, and MyFitnessPal
to create a platform for its 165 million potential customers.
59% of retailers and 52% of brands cite market insight or innovation
as the most important characteristics to put the customer first.*
VI. AGILITY
What is it? Flexible processes, systems, and infrastructure.
Fast decision making.
TIP:
Harness flexible processes, systems, infrastructure,
and decisions to manage a connected ecosystem
that engages and serves customers.
Whole Foods partnered with Instacart to
facilitate home grocery delivery.
Retail Organizations: The Next Stage of Transformation
For more insights on how to transform your organization,
read the full report.
*Accenture’s Retail Organizations: The Next Stage of Transformation report
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