Morrison’s record £176m loss
Major supermarket retailers Morrison’s have recorded £176m loss and a dip in turnover of 2% for the year to the end of February.
Dalton Phillips, chief executive for Morrison’s is planning a major restructuring job to obtain some of the market share they have lost. Their strategy includes addressing the price perception gap between the four major retailers, lowering prices, more targeted promotions and a loyalty scheme, which can track customers shopping habits.
Not only are Morrison’s lowering their prices, but they are also including targeted promotions and a loyalty scheme as part of their revamped strategy. The targeted promotions and loyalty scheme have the potential to allow Morrison’s to cater to individual consumer needs by understanding shopping habits, listening to what consumers are asking for, and then shaping their targeted promotions and loyalty schemes to deliver on customer wants. After all, while price is important, it is also important to give the customers what they want because this will generate revenue and profit.
For all retailers, in order to understand how to cater to consumer needs, they must listen to and understand what their customers want. Factors that may not have been previously considered, such as lighting, employee behavior or aisle width in a store, could impact purchasing habits, and may only come to light once customer feedback is accurately analysed. Consumers are talking more than ever, and the powerful tool of social media allows that information to pass even faster. With more choice, customers become increasingly picky, therefore it is vitally important for businesses to harness what customers are saying.
Listening and responding to your customer quickly is important. Customers are talking about your organisation on blogs, Twitter, Facebook, LinkedIn and they are talking in real time and in detail. The feedback they leave about their experience with your organisation can be amplified in a matter of minutes. Additionally, volumes of feedback over the phone, in emails and letters received internally by organisations need managing. How to manage such large volumes of data?
Text and Sentiment Analytics
A text and sentiment analytics engine is a form of natural language processing. Text and sentiment analytics is able to take in all customer feedback received internally and externally, manage that data and provide reports to your organisation giving insights that can be acted upon, which lead to increases in customer satisfaction, experience and loyalty. How does it do this?
Such an engine is able to rate data from free text answers, such as the open-ended questions using a sentiment scale. Not only does this tell you what the customers are saying but also explains what they’re feeling. The unique aspect of the engine is that it understands the relationships between words in a sentence and can automatically develop themes and categorise them. Using a simple example, if a customer were to say “The shop was untidy, but the checkout staff were friendly”, the text engine would firstly pick up the themes (cleanliness and staff) and apply a sentiment to each of these themes. The themes can be exported to a dashboard and represented in different formats, such as:
– Bar chart: A typical bar chart will populate the amount of times a theme is mentioned.
– Word relationship cloud: A word relationship cloud enables a user to see the sentiment felt towards identified themes.
– Double axis chart: Can combine volumes of themes and sentiment.
– Heat map: The heat map is another unique way of displaying the data. Each theme is represented in a block. The size of the blocks depicts the volume mention of themes and its colour the sentiment.
Where do DCC fit in?
DCC works with text and sentiment analytics providers to help businesses collect, analyse and act on feedback from customer comment cards. For example, in another project with a global retailer, the retailer collected customer feedback on A5 comment cards. As no specific questions were asked, customer can write as little or as much as they want.
DCC received comment cards at regular intervals, scanning, extracting and verifying them to 100% accuracy via our extensive, fully managed extraction and verification process (image below) before uploading onto the text and sentiment engine for analysis, reporting and customer engagement.
The retailer now has a fully internally managed Customer Experience Management solution and is listening to the customers’ voice in almost real time. The dashboard displays insights that decisions can be based upon, directly resulting in happy and satisfied customers. The dashboard is only as good as the quality of the data it contains and DCC’s extraction and verification solution ensures that the data fed into the dashboard is accurate, containing no errors.
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