Flevy Management Insights Case Study

Enhancing Consumer Decision Journey for Global Retail Company

     David Tang    |    Consumer Decision Journey


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Consumer Decision Journey to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR An international retail organization faced challenges with inconsistent consumer engagement and low conversion rates amid a complex Consumer Decision Journey. By implementing a tailored omnichannel strategy and robust data analytics, the organization achieved significant improvements in customer satisfaction, conversion rates, and retention, highlighting the importance of adapting to a digital-first consumer landscape.

Reading time: 8 minutes

Consider this scenario: An international retail organization is grappling with navigating the current complexities of the Consumer Decision Journey (CDJ).

This organization, which operates both brick-and-mortar stores and an e-commerce platform, is confronted with inconsistent consumer engagement, low conversion rates, and dwindling customer loyalty. Despite considerable marketing expenditures, the organization struggles with deciphering the highly fluid and increasingly digital CDJ, negatively impacting its bottom line.



Given the situation, there could be issues pertaining to the organization's understanding of its customers' behaviors and their evolving needs, or possibly, the organization's digital capabilities are not robust enough to engage customers effectively. Another hypothesis could be a less integrated omnichannel approach disturbing the smooth transition of customers through various stages of CDJ.

Methodology

Implementing a meticulously planned 4-phase approach to the Consumer Decision Journey (CDJ) could serve as a potential solution:

  1. Analysis of Consumer Behavior: Understanding consumers' needs and expectations. Comprehensively examining consumers' digital footprints, and building consumer personas.
  2. Mapping CDJ: Tracing the path consumers take from awareness to purchase, identifying touchpoints and creating a detailed CDJ map. Understanding the points of friction and ensuring smooth transition.
  3. Building an Omnichannel Strategy: Designing an integrated omnichannel strategy to facilitate a seamless CDJ. Enhancing the digital experience through improved website navigation, personalized promotion, mobile integration, etc.
  4. Measurement and Enhancement: Establishing KPIs and measuring the effectiveness of the revised CDJ. Continually refining the journey based on metrics and feedback.

The board may express concerns about the cost and timeline of the overhaul. Addressing these, the implementation of phased methodology would be spread over time, allowing for costs to be distributed and not overly burden the on-going operations. Moreover, quick wins from each phase would generate incremental ROI mitigating some of the investment.

CEOs may also question the necessity of a comprehensive digital transformation. A robust digital strategy is not a matter of choice but a necessity in today's digital-focused world, as 87% of consumers begin their shopping journey with digital, a jump from 71% in 2017 (source: Salsify).

For effective implementation, take a look at these Consumer Decision Journey best practices:

Six Building Blocks of Digital Transformation (35-slide PowerPoint deck)
Customer Journey Mapping - Guide & Templates (67-slide PowerPoint deck and supporting PowerPoint deck)
Customer Journey Mapping (143-slide PowerPoint deck)
Customer Journey Assessment & Checklist (42-slide PowerPoint deck)
Six Building Blocks of a Customer-Centric Organization (32-slide PowerPoint deck)
View additional Consumer Decision Journey best practices

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Expected Business Outcomes

  • Improved Customer Satisfaction: Tailored and seamless Consumer Decision Journey leading to increased levels of customer satisfaction.
  • Increased Conversions: A smoother CDJ transition leading to more closed sales and enhanced revenue.
  • Better Customer Retention: Enhanced engagement driving customer loyalty and fostering a pool of repeat customers.

Sample Deliverables

  • Consumer Behavior Analysis Report (PDF)
  • CDJ Map (PowerPoint)
  • OmniChannel Strategy Document (MS Word)
  • KPI Metrics Dashboard (Excel)

Explore more Consumer Decision Journey deliverables

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Additional Player Involvements

Well-aligned internal teams, such as marketing, sales, operations, digital, and customer service, are critical for creating a seamless CDJ. This requires clear communication, shared objectives, and collaboration among teams.

Technology Leveraging

Emerging technologies can pave the way for an enhanced CDJ. Artificial Intelligence (AI) can aid in better segmentation, Machine Learning (ML) can predict consumer behavior, and Augmented Reality (AR) can create immersive shopping experiences.

Understanding the Voice of Customer

Listening to the voice of the customer goes beyond their expressed needs, preferences or complaints. To elevate customer experience, it is critical to understand and predict their motivations and behaviors. Key techniques involve analyzing customer data through text and sentiment analytics, predictive modeling, and digital ethnography.

Assuring Data Privacy

In this age of data-driven decisions, concerns around data privacy and associated legal consequences are valid. Organizations must ensure robust data security measures are in place and comply with all relevant legislation, such as GDPR. Transparency about the use of customer data can also enhance consumer trust.

Consumer Decision Journey Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Consumer Decision Journey. These resources below were developed by management consulting firms and Consumer Decision Journey subject matter experts.

Impact of the Project on Employees

While enhancing the consumer decision journey, companies should anticipate and manage the change for their employees as well. Alignment of cross-functional teams, clear communication of the change vision, and employee training can ensure a smooth transition.

Return on Investment (ROI)

Measuring the ROI of enhancing the consumer decision journey can be nuanced, as some benefits, for instance, increased customer loyalty or improved brand perception, are intangible and long term in nature. However, organizations can track metrics such as improved Net Promoter Score (NPS), conversion rate, customer retention rate, and reduced customer acquisition cost for a balanced evaluation of ROI.

Integration with Existing Systems and Processes

One question that arises is how the new CDJ strategy will integrate with the company's existing systems and processes. To ensure a smooth transition, the strategy must be compatible with the current IT infrastructure and align with the company's operational processes. The integration phase should include a thorough analysis of the existing systems, identification of any gaps, and a detailed plan for system upgrades or replacements as necessary. The process must be carefully managed to minimize disruption to ongoing operations.

Moreover, it is essential to provide comprehensive training for employees to familiarize them with the new systems and processes. Change management principles should be applied to assist employees in adapting to the new way of working, and to ensure they are fully equipped to deliver an enhanced customer experience. This integration is not only a technical challenge but also an organizational one, requiring a clear communication plan and strong leadership to navigate the changes.

Competitive Benchmarking

Executives will be interested in understanding how the proposed CDJ enhancements will position the organization competitively. Benchmarking against industry leaders and direct competitors can provide valuable insights into best practices and help to identify areas for improvement. According to a study by Accenture, 91% of companies are more profitable than their peers when they invest in customer experience initiatives that leverage digital capabilities.

For this retail company, a competitive benchmarking exercise would involve an analysis of competitors' omnichannel strategies, digital marketing tactics, and customer engagement methods. The aim would be to identify gaps in the company's current approach and to understand the competitive landscape. This information would then be used to tailor the CDJ enhancements and to set realistic targets for customer satisfaction, conversion rates, and customer retention.

Scalability and Future-Proofing

As the retail landscape continues to evolve, executives will want to ensure that the new CDJ strategy is scalable and capable of adapting to future changes. This includes considering the impact of emerging trends such as the increasing use of social commerce, the integration of Internet of Things (IoT) devices into the shopping experience, and the potential for new payment technologies.

The CDJ enhancements should be designed with scalability in mind, allowing for easy expansion or modification as the market demands. Additionally, future-proofing the strategy involves investing in flexible technology platforms that can integrate new tools and channels as they become relevant. This proactive approach ensures that the company remains agile and competitive over the long term.

Customer Data Utilization and Analytics

Maximizing the value of customer data is crucial for understanding and enhancing the CDJ. Executives will inquire about the types of data analytics tools and techniques that will be used to capture and interpret customer data. Advanced analytics, including predictive analytics and machine learning algorithms, can provide deep insights into customer behavior and preferences.

For instance, by analyzing customer data, the company can personalize the shopping experience, tailor marketing efforts, and predict future purchasing patterns. Gartner reports that by 2025, customer service organizations that embed AI in their multichannel customer engagement platform will elevate operational efficiency by 25%. Therefore, investing in robust analytics capabilities is a strategic move that can drive significant improvements in the CDJ.

Alignment with Corporate Strategy and Goals

The enhancements to the CDJ must be aligned with the broader corporate strategy and goals of the organization. This includes ensuring that the CDJ strategy supports the company's mission, vision, and strategic objectives. For example, if the company aims to be a leader in sustainability, the CDJ should incorporate elements that resonate with environmentally conscious consumers.

In addition, the CDJ enhancements should contribute to the company's financial targets by driving revenue growth, reducing costs, and improving profit margins. The alignment with corporate strategy ensures that the CDJ is not an isolated initiative but a core component of the company's overall business strategy.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Enhanced customer satisfaction through a tailored and seamless Consumer Decision Journey, leading to a noticeable improvement in customer feedback scores.
  • Increased conversion rates by 15% year-over-year, attributed to smoother transitions in the CDJ and more effective touchpoints.
  • Improved customer retention by 20%, driven by enhanced engagement and loyalty programs.
  • Successful integration of omnichannel strategy, resulting in a 25% increase in cross-channel sales.
  • Significant reduction in customer acquisition cost by 30%, through more targeted marketing and efficient use of digital channels.
  • Established robust data analytics capabilities, enabling predictive modeling of customer behavior and a 10% increase in marketing ROI.

The initiative to enhance the Consumer Decision Journey has proven to be a resounding success. The key results demonstrate significant improvements across customer satisfaction, conversion rates, and retention, which are direct outcomes of the meticulously planned and executed strategy. The reduction in customer acquisition cost and the increase in cross-channel sales further validate the effectiveness of the omnichannel approach and the integration of advanced analytics. The initiative's success is underpinned by its alignment with the company's broader corporate strategy and its ability to adapt to the digital-first consumer landscape. However, there were opportunities for even greater success, such as deeper integration of emerging technologies like AI and AR to create more immersive experiences, which could have further differentiated the customer journey.

For next steps, it is recommended to focus on the continuous enhancement of the CDJ by leveraging emerging technologies and trends. This includes exploring the use of augmented reality (AR) to create more immersive shopping experiences and integrating social commerce to tap into new customer segments. Additionally, there should be an ongoing effort to refine data analytics capabilities, enabling even more personalized customer interactions. Finally, fostering a culture of innovation and agility within the organization will be crucial to adapt quickly to future changes in consumer behavior and market conditions.


 
David Tang, New York

Strategy & Operations, Digital Transformation, Management Consulting

The development of this case study was overseen by David Tang. David is the CEO and Founder of Flevy. Prior to Flevy, David worked as a management consultant for 8 years, where he served clients in North America, EMEA, and APAC. He graduated from Cornell with a BS in Electrical Engineering and MEng in Management.

This case study is licensed under CC BY 4.0. You're free to share and adapt with attribution. To cite this article, please use:

Source: Customer Experience Strategy for Amusement Park in Asia-Pacific, Flevy Management Insights, David Tang, 2025


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