The ROI of Stronger Customer Value Propositions
Retailers who have better RPI scores (i.e. better customer perception in areas that matter most) have stronger customer outcomes.
When we compare our RPI rankings against financial outcomes, the conclusion is clear. Better customer perception leads to better financial outcomes. Retailers in the 1st Tercile of our rankings (ranked 1st – 9th in overall RPI score) not only have grown grocery revenue the most over the past year, but they’ve grown the most over the past 5 years and have, over the long-term, built an edge over others in overall market share.
1st Tercile retailers grow 2x faster over the long-term than 3rd Tercile retailers.
Strong financial outcomes over the long-term start with the ability to drive strong customer outcomes. 1st Tercile retailers demonstrate a greater ability to win in their current footprints, with their current customers, and they are doing so with a customer value proposition that builds an emotional connection with customers.
1st Tercile retailers earn 29% of an individual customer’s share of grocery spend. If the average person spends $300 per month on groceries, that means a 1st Tercile retailer gets $87 per month from that person. Contrast that with a 3rd Tercile retailer, who would only get $51 per month. That $36 per person per month left on the table by 3rd Tercile retailers adds up over the course of a year, especially when you multiply it by hundreds of thousands or even millions of customers.
