Smart Data Smart Decisions Smart Profits

The capabilities to capture and use customer data to

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Unformatted text preview: arget and maintain the loyalty of preferred customers. The capabilities to capture and use customer data to make smarter business decisions are a “must have” competitive skill going forward. These customer capabilities will allow winners to strengthen customer relationships, both within and across channels, and to make smarter business decisions – from category management to marketing spend allocation to local store management. Multi-channel retailers are likely to move the fastest, as they see immediate benefits from linking on-line and off-line customer behavioral insights. By embracing a "customer mindset" and adding new skills and systems, winning retailers will shape more compelling value propositions for their customers and make smarter business decisions. Players that succeed can reap enormous returns – in more satisfied customers and more efficient businesses. Both lead to superior growth in sales and profits. Smart data, smart decisions, smart profits 19 MCKI29 - Ret. Smart Des.7 8/9/00 11:08 AM Page 20 Smart Data Smart Decisions Smart Profits: The Retailers’ Advantage is a joint publication of the North American Retail Practice and the North American Marketing Practice of McKinsey & Company. The McKinsey Retail Practice is a global practice serving clients in all sectors of retailing as well as foodservice and hospitality. We work with clients on three broad issue areas, with a focus on performance improvement and value creation. First, we assist clients in shaping and delivering winning strategies that respond to the consumer, competitor, and technology issues reshaping the industry. Second, we apply our expertise in end-to-end retail operations to improve the critical operating processes that drive returns. Third, we help clients redesign business structures and processes and build new skills to compete more effectively in today's New Economy. We collaborate on an ongoing basis with our colleagues in McKinsey's Marketing, Operational Effectiveness, and E-Commerce practices, among others, to ensure we deliver our best thinking to retail clients. The McKinsey Marketing Practice has dedicated directors, principals, and spets with deep expertise across key marketing areas, including branding, CRM, sales and channel management, pricing, and market research. We have extensive experience working with retailers across formats – spets, mass merchants, hypermarkets, department stores, and e-tailers. We invest significant resources to offer state-of-the-art knowledge on emerging marketing issues for our clients, including identifying the emerging needs of on-line consumers, building new branding and relationship marketing approaches at on- and off-line businesses, increasing sales productivity, and managing multi-channel offerings. 20 ©McKinsey & Company 2000 MCKI29 - Ret. Smart Des.7 8/9/00 11:08 AM Page 21 Our perspectives on these topics are available in other articles, including Superior Marketing in the Next Era of E-Commerce, Marketing in 3 Dimensions and Venture Marketing Organizations: Winning the Race for New Market Opportunities. Other publications in this series include Retailers to the World, Achieving Profitable Growth in Retail, and From Hype to Profits: The Retailer’s Guide to Succeeding on the Internet. If you would like any of them, please send an email with your name, company, title, and address to mckinsey_marketing_practice@mckinsey.com or call the McKinsey Marketing Hotline at 203-977-6800. MCKI29 - Ret. Smart Des.7 AMSTERDAM ATHENS ANTWERP ATLANTA AUCKLAND BANGKOK BARCELONA BEIJING BERLIN BOGOTA BOSTON BRUSSELS BUDAPEST BUENOS AIRES CARACAS CHARLOTTE CHICAGO CLEVELAND COLOGNE COPENHAGEN DALLAS DELHI DETROIT DUBAI DUBLIN DÜSSELDORF FRANKFURT GENEVA GOTHENBURG HAMBURG HELSINKI HONG KONG HOUSTON ISTANBUL JAKARTA JOHANNESBURG KUALA LUMPUR LISBON LONDON LOS ANGELES 8/9/00 11:08 AM Page c1 MADRID MANILA MELBOURNE MEXICO MIAMI MILAN MINNEAPOLIS MONTERREY MONTRÉAL MOSCOW MUMBAI MUNICH NEW JERSEY NEW YORK ORANGE COUNTY OSAKA OSLO PACIFIC NORTHWEST PARIS PITTSBURGH PRAGUE RIO DE JANEIRO ROME SAN FRANCISCO SANTIAGO SÃO PAULO SEOUL SHANGHAI SILICON VALLEY STAMFORD STOCKHOLM STUTTGART SYDNEY TAIPEI TEL AVIV TOKYO TORONTO VIENNA WARSAW WASHINGTON, DC ZURICH...
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