- Kingland Platform
The world's most integral companies exist because they have the world's most integral customers.
As one of the world's most integral companies, you know that now, more than ever, you have to be focused on delighting your customers. COVID-19 has changed consumers' demands and behaviors, with an estimated 20% increase in online sales since the pandemic began. We aren't just talking groceries and cleaning supplies; nearly every category expects to receive a ~15-30% increase in online purchasing compared to activity before COVID-19. These online sales are great news for major retailers and top consumer packaged goods manufacturers (CPGs). Despite restrictions on store hours, new cleaning standards, and less foot traffic at brick-and-mortar locations, many retailers reported better than expected earnings in Q2 of 2020. Again, great news for those retailers and the CPGs that provide them with their inventory. But forward-looking executives are already asking,
"What key investments do we need to make to connect with our customers and meet their demands today and in the future?" According to a McKinsey survey, top retail and CPG executives will focus on these top 3 capabilities for investment over the next 12-18 months.
McKinsey suggests that an average retailer allocates only 6-9% of its total full-time equivalent resources to the three capabilities mentioned above. That number is even lower for CPGs who estimate a 5-7% allocation of their FTE resources to those capabilities. To succeed in the Post COVID-19 online marketplace, top retail and CPG executives believe they need to increase their capabilities in omnichannel, digital, data, and analytics omni-supply chain by 2-3 times.
The world's most integral companies are reporting better than expected earnings during a worldwide pandemic. Still, to see consistent growth, they need a fresh look at using data and technology to identify customer expectations and satisfy them. To do this, top retailers and CPGs need to focus on modernizing the platforms they use in merchandising, supply chain, marketing, and, most importantly, the customer experience. This modernization is going to require significant and targeted investments in technology, data, and analytics. As a top executive, it's not a matter of if you're going to make these investments, but how can you make them happen. We have over 20 years of experience working with integral companies.