Retailers must relate better to customers, GI says

A survey from database marketing specialist GI Insight has suggested that firms need to get closer to customers if marketing communications are to be welcomed.

The Customer Intimacy Index revealed that consumers see supermarkets as 'friends' but many major industry sectors fail to relate to customers.

It showed that most companies need to do more to create personalised, highly relevant customer communications and revealed that industry sectors with frequent transactions, regular customer contact and strong loyalty programmes are those that are best received and viewed in the most friendly light by consumers.

But companies operating in many major consumer sectors need to raise their game if they want to build strong customer relationships.

Supermarkets topped the index, with consumers rating their understanding of customer needs and preferences as 26 per cent above the norm.

Respondents felt that these businesses demonstrated in their communications that they know their customers like 'good friends' rather than 'acquaintances' or 'total strangers'.

They were even more highly regarded by their female customers, who rated their grocery retailers' knowledge of them as 33 per cent above average.

Among the other sectors that consumers felt knew them like 'a good friend' were internet service providers (17 per cent above average), banks and entertainment companies (both 16 per cent above).

Mobile phone providers and holiday, hotel and travel companies were also rated above the norm.

In contrast, UK consumers declared that estate agents showed the worst customer knowledge in their messages, rating them 39 points below average for treating them 'like a total stranger'.

Other sectors seen as being out of touch and unfamiliar with their customers are alcoholic drinks (28 per cent below average), computer producers (22 per cent below), car manufacturers (20 per cent below) and food brands (12 per cent below).

Fashion firms, utilities, charities and insurance companies hovered around the average, indicating plenty of room for improvement.

Overall, 18- to 24-year-olds rated the firms they deal with most highly in terms of how well they demonstrated their knowledge of their customers in the communications and offers they send via post, e-mail and phone.

Men felt that the companies and brands that they deal with demonstrated a greater knowledge and familiarity with their needs and preferences than did women, rating all sectors 14 percentage points higher than women.

Andy Wood, managing director at GI Insight, said: '"Know your customers" is a mantra that just about every company understands and embraces, but too many simply pay lip service to the concept.

'It would seem that, while most organisations that collect a lot of customer data are managing to provide their customers with personalised, highly relevant offers and communications, there is still a long way to go before this becomes the norm.

'Even within industries that appear to have close relationships with their customers, there are discrepancies in the level of successful targeting of different age groups.

'As the UK emerges from recession, it is critical for firms to understand the value of customer data and its vital importance in enabling them to tailor offers and communications that are seen as relevant and welcomed by customers, thus helping with retention, cross-selling and up-selling.

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