Russia’s first study of the use of CJM practices in retail

Russia


IT NewsFacts and forecastsMarket analytics

Ekaterina Alexandrova | 10/16/2020

Russia's first study of the use of CJM practices in retail

The digital marketing laboratory of the IT company “CROC”, the organizers of the specialized conferences Retail TECH and the Digital Leader networking platform in September 2020 conducted a comprehensive study,
dedicated to creating the best customer experience in the retail business “CJM: Retail Treasure Island”.

The authors of the study found out at what stages most companies lose customers, what data helps to assess the level of customer loyalty and how to find ideas for product development and
services. The survey involved both retail experts (FMCG, Fashion, electronics and other segments) and ordinary consumers of the age category from 18 to 55 years old. In total, more than 540 were polled
respondents.

The declining purchasing power and high competition in the market requires retailers to work harder on customer loyalty and retention. Customer Journey Map has become the main tool
retail to solve this problem. The representatives of the companies that took part in the research agreed that the experience of conducting CJM research in Russia is still small in comparison with the international one.
practice (on average, no more than three years), but has great potential. Today 39% of surveyed experts use the CJM tool in retail, another 37% are planning. For comparison: in 2018, 67% of companies
CJM was already used in the world, and the very prototype of CJM appeared in the US retail in the 1930s, when market researchers began to conduct a qualitative study of brand buyers and realized that
demographic factors are insufficient to explain consumer behavior.

Increasing sales, identifying customer churn points and understanding your target audience are the top reasons for using CJM, according to experts. In addition, using this tool, companies
want to reduce customer acquisition costs, improve conversions, and discover growth points for further product development. So, using CJM, experts determined that in the retail market 80%
In some cases, the loss of customers occurs in the process of registering a personal account, filling out forms and choosing a product – the path from the moment the client appears on the site / in the store to the first purchase.

The survey results showed that the starting point for creating a “customer journey” is usually the surveys and research conducted by the business to collect customer data. As a rule, companies
collect information about customers from digital channels: CRM, websites, mobile applications, but some companies also analyze the behavior of visitors in regular stores.

Most often, companies try to find an approach to the client on their own, without resorting to the services of third-party consultants, and use custom development. To this end, many organizations are developing
internal competencies in data analytics and create their own digital services. Unfortunately, this approach leads to a situation where the business lacks knowledge, experience and ready-made effective
tools. 40% of respondents reported that they had mistakes when creating a CJM. Time and resources are often wasted on erroneous actions, especially in terms of collecting, analyzing data and interpreting
results.

CJM research data is most commonly used by marketers, analysts, account teams, product owners and sales teams to improve customer experience and
elimination of problem areas in Customer Journey. A company’s customer experience is usually assessed using conversion metrics and retenshion rate (an indicator that determines the level of loyalty
customers). The survey results showed that in the process of working on a client’s CJM, regularity is important – the more often the metrics are monitored, the more value of the research, the data of which can be
use to increase customer loyalty.


According to experts, CJM can be a valuable business assistant, but for its results to be as effective as possible in developing a customer experience, the retail market needs more practice.
To do this, it is necessary to increase the level of expertise in the market, convey the value of using CJM to company leaders and learn how to use digital tools for analyzing and processing client
data.

“Having become the authors of the first Russian research on CJM, we wanted to draw the attention of business to the importance of systematic approaches in its construction, identified key values ​​and mistakes that are relevant for
Russian retail. Nike is an example of a global brand that works with emotion at every stage of the customer journey, aided by the rich experience of CJM in American retail. Finding that
Customers are interested in the digital experience, and the company was able to sell the limited edition sneakers in less than an hour through the Facebook Messenger AR app. This example demonstrates the difference in
assessing the importance of CJM for working with customer experience (4.5 / 5 in the United States and 3.9 / 5 in Russia). We see that American companies have more practice of working with this tool and therefore more successful cases.
Russian brands are just beginning to get the same opportunities that we talked about in our study, ”said Elena Volkovskaya, Head of the Digital Marketing Laboratory, Director of
strategic marketing of the IT company “CROC”.

retail, tools

KROK | CROC



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