By developing a strategy that seeks to deliver degrees of invisibility, intimacy and indispensability through distinct channels, retailers can create the capabilities to deliver a contextual experience based on the needs of their customers at any given time.
Here are three questions that retailers can ask themselves to ensure that they can shape a preferable future for their businesses.
What Are My Capabilities And Values Today?
Retailers can build from a position of strength by looking at what their current value proposition brings and how it resonates with the changing market around them.
Tangible assets – such as their physical and digital footprint, their business infrastructure, their ecosystem network, their existing assortment of goods and services, and their financial strength – can be assessed alongside more intangible resources, such as their core values and commitments, their brand value and its associations, their understanding of their customers, and their operational data.
When combined, these will give a retailer an immediate sense of how they balance invisibility with indispensability and intimacy in their business of today.
What Do I Need To Thrive Tomorrow?
Retailers can set the KPIs to which they hold themselves accountable in the current business climate against those that will confer or create value in the future.
These will require an understanding of where their customers will be, what their expectations might be, and how best they can serve those expectations with the right talent, technology, ecosystem and infrastructure.
What Building Blocks Will I Need To Apply To Deliver Tomorrow?
A retailer that knows its strengths and has a clear vision of what it wants to become can plan to develop its capabilities by directing them towards the anticipated customer needs of invisibility, indispensability and intimacy.
Some elements – such as integrating and extending its analytics capabilities to develop a deeper and broader understanding of its business and the customers it serves – will span all three core value propositions, while others may be more aligned to a specific area.
To find out more, read EY’s report titled How Retailers’ Value Propositions Need To Evolve For Success.