Being agile to win consumer loyalty

LACK of agility has become a deterrent among retailers and consumer companies, and they are losing out on USD345 billion annually. This conclusion was based on a survey of 270 C-level executives across the globe.

Global management consulting firm, A.T. Kearney conducted the survey and presented their report, Consumer Centric: From Idle to Agile during the Consumer Goods Forum in Singapore (13-15 June 2018), which offered insights on how top companies are embracing change – specifically those related to consumer behaviour. Over a third of surveyed executives believe that culture is a barrier to increasing their agility and in adapting to the preferences of Gen Z and Millennial consumers which together will make up 70% of the global population by 2030. Having said that senior leaders consider addressing this as a major priority.

Gen Z and Millennials consumers are more likely to respond to tailored marketing strategies

What do consumers want?

According to A.T. Kearney, these two generations of consumers are likely to respond to personal tailored marketing rather than mass marketing. According to the firm, Gen Zs and Millennials want to be served individually. The firm’s survey also shows that loyalty programs, discounts and gift cards are not necessarily the approach to use on these consumers. It said loyalty programs must show a company’s loyalty towards the customer.

How can companies be agile?

From being idle to being agile, companies have to acknowledge that they cannot be content in the way they currently operate and should engage in innovations that meet their consumers’ needs. Where to start, A.T. Kearney offers the following suggestions:

Create small teams that are attuned to consumers and free to follow their instincts.

Listen to consumers and actively engage with them to understand and serve them personally.

Shape trends with offers that create new kinds of consumer demand.

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