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The new job at McDonald’s, Under Armour that’s all about the customer 

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In London, Ontario Canada on Wednesday January 8, 2020, during a “P.L.T.” test, a customer is served a meal from the drive-thru at McDonald’s Corp. sandwich — tomato, plant and lettuce with Beyond Meat’s pea based patties.

Getty Images| Bloomberg | Getty Images

Along with supply chain issues, the rising cost of raw materials and other lingering business challenges stemming from the pandemic, a big focus in the C-suites of many of the world’s largest corporations has been the creation of a new executive rank: Chief Customer Officer.

Over the past few quarters, companies across the economic spectrum — from McDonald’s, CVS Health, Under ArmourAnd WalgreensWholesale grocer United Natural Foods — have added the top job to help the boardroom better stay in touch with a rapidly changing landscape of the consumer.

Prior to the pandemic, customer satisfaction was frequently tracked using talking-points lists that were created by various departments and passed to the top of the management. But now, one high-ranking person is being appointed to influence employees throughout the company to better understand customer desires.

Augie Ray, Gartner vice president of customer experience, says that while many organizations are product- or channel-centric and have struggled to adapt, there is a rising awareness about the need for customers-centricity. “Certainly the pandemic has caused a lot of organizations to realize that they weren’t in touch with their customers — they realized that they need to listen more.”

According to A.I., the top priorities of customers in the coming two- to three years were improving customer experience and building stronger relationships with them. 2021 surveyThe IBM Institute for Business Value has 3,000 CEOs.

Digital is key to driving sales growth

It’s not a new phenomenon. Many companies have had a version of this role — chief consumer/customer/experience officer — over the past decade. However, the impact of the coronavirus epidemic on internet usage is not expected to decrease. The IBM study found that more than three quarters (73%) of executives believe the change in customer behavior after Covid-19 is likely to continue. With the permanent shift in balance between online and offline shopping, customers chief positions are becoming critical mass.

According to Gartner’s 2019 Customer Experience Management Study (up from 61% in 2017), ninety-five percent of 401 businesses said that their company had a chief executive officer. Gartner anticipates that the number will rise today. The results of the company’s next survey are due in the coming weeks. Ray says, “We are getting to the middle of our bell-shaped curve when it comes to companies creating these positions.” “The role is a recognition in many cases of what’s already been happening — a lot of organizations that have had a V.P. Customer experience is a major factor in promoting someone to this role as CCO.

A chief customer officer reports to the CEO. The roles of these officers can vary from industry to industry and differ greatly between organizations. This role is typically a mix of digital, data, and branding. A wave of chief digital officers were created to manage digital interaction with customers as a result of the rise in mobile computing.

Paul Papas from IBM Consulting, the global managing director in business transformation, said that “that progressed to chief customer officer who looks more holistically customer experience.”

A lot of data was gathered online by customers during the pandemic, which has prompted some new ideas about the C-suite structure. The big company’s sales and marketing departments were split, but data and ecommerce have brought them back together. [to enable]The rise and importance of chief customer officers,” commented Ivan Pollard of The Conference Board’s marketing and communications team and former CMO of General Mills. He said that the increase in data means there are “billions of one-to-one conversations with customers which can be managed to impact a company’s strategy.”

A lot of brands have adopted an Omnichannel Strategy in which the online data and physical footprint are used to reinforce brick-and mortar’s ongoing existence.

McDonald’s, new consumer preferences

Manu, who was appointed in JulyAs McDonald’s global chief customer officer, he leads a group that includes data analytics, digital customers engagement and global marketing. He focuses on “each and every touchpoint” according to McDonalds’ statement.

Steijaert’s solid plan is a good one to follow given McDonald’s track record of embracing technology since 2015, which includes the company’s success pre-pandemic with its all-day breakfast menu. This was cited in an analyst note by Morningstar.

Chris Kempczinski, CEO of McDonald’s, stated that “when people are ready to the McPlant,” referring to plant-based burger menu options. McDonald’s declined comment.

McDonald’s has also unveiled a 2020 business strategy, based on the changing needs of customers during this epidemic. Kempczinski stated that focusing on delivery and digital is key. He also said that push food delivery was a way to meet a customer’s need, which he believes none of us understood until a few years back.

Steijaert likely will play a part in McDonald’s understanding of customers data through its loyalty program. The underlying information provides a competitive advantage, allowing McDonald’s to develop a customer database and determine which promotions work.

The fact that he grew up in a McDonald’s store and was later able to lead the company’s innovation team speaks volumes about his background.

“People are saying the pandemic will be all about drive-thrus and delivery — obviously some of those habits will stick,” says Ray. “But there’s also a strong desire to get back to normal … humans are still physical creatures and you have to understand peoples’ needs in the physical world and in the way that they’re using your product there, too.”

Atlantic Equities research analyst Edward Lewis says that same-store sales are crucial to the growth of the company. “Data will play a critical role in that to drive frequency visits and continue rises in ticket prices.” It’s clear that McDonald’s recognized the importance of having someone to oversee all areas.

Under Armour’s first chief commercial officer was appointed in October. Massimo Baratto will manage global marketing, ecommerce, and retail as the sportswear brand continues to recover and chases market leaders Nike & Adidas.

“In terms driving the brand forward we’re going be continuing to following our strategy which is ultimately a consumers-led strategy,” CEO PatrikFrisk stated during the company’s earnings conference call. Under Armour did not respond to our request for comment.

Baratto will help the company to build relationships with its customers by adapting the buying behavior of athletic footwear and sportswear consumers during the epidemic. Matt Powell (Vice President and Senior Industry Advisor for The NPD Group), stated that athletic footwear sales represented 40% of the market in 2020 and 30% in 2019. People are purchasing shoes more via their smartphones than through laptops. Conceptually, consumers are focused on keeping fit and staying connected.

Powell stated that brands are now able to see how their customers make up the bulk of their business. They’re increasing their loyalty programs, and using that information to help shape future assortments is a way for them to increase their offerings.

Data flowing in from loyalty programs — like customer buying habits — is one way CCOs will be able to use context to better humanize each customer experience. Data can also help call center staffers gather context about customers during phone calls, like what webpages they were looking at and detailed histories of buying behavior, which can foster a longer-lasting connection, says IBM’s Papas.

While a CCO’s core job — satisfying customers and making them loyal to your brand — is a goal analysts say all firms need to lean into, it’s too soon to know whether the new executive position keeps a long-term seat in the C-suite. “CCOs aren’t responsible for touchpoints — they don’t have a product team or digital team reporting to them,” Ray said. It’s an important role with great power. However, Ray stated that it should be used to help leaders and front-line employees in the company become customer-centric in all aspects of their daily operations.

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